India Aluminium Scrap Import Market -- HS 7602 Trade Data & Price Trend (Q2 2025)

India Aluminium Scrap Import (HS 7602) Key Takeaways

India's aluminium scrap imports under HS Code 7602 surged 16% in May 2025 before moderating in June, reflecting volatile demand tied to industrial cycles. The market is dominated by bulk-grade scrap (76020010), with pricing power limited by commodity dynamics and an 18% GST rate. Supplier concentration is high, with key traders like AL QARYAN GROUP controlling 60% of import value, while the US and Saudi Arabia lead as primary origins—the former for higher-grade scrap, the latter for bulk volumes. This analysis covers Q2 2025 and is based on processed customs data from the yTrade database.

India Aluminium Scrap Import (HS 7602) Background

What is HS Code 7602?

HS Code 7602 classifies aluminium waste and scrap, a critical raw material for India’s secondary aluminium production. This category includes clean aluminium lithographic sheets and other recyclable scrap, primarily used by the automotive, construction, and packaging industries. Global demand remains stable due to its cost-effectiveness and sustainability benefits in metal manufacturing.

Current Context and Strategic Position

India’s aluminium scrap imports under HS Code 7602 face an 18% GST rate, with industry advocates pushing for a customs duty hike to 10% to align with primary aluminium tariffs (ClearTax). This reflects ongoing tensions between domestic production needs and reliance on recycled imports. India’s aluminium scrap import market is strategically significant, driven by cost-sensitive downstream sectors and circular economy goals. Monitoring HS Code 7602 trade data is essential to navigate potential policy shifts and supply chain disruptions in Q2 2025.

India Aluminium Scrap Import (HS 7602) Price Trend

Key Observations

India's Aluminium scrap imports under HS code 7602 in Q2 2025 reached a total value of approximately $1.534 billion, reflecting a volatile quarter with a sharp May surge to $544.18 million followed by a June moderation to $521.20 million. The India Aluminium scrap Import trend highlights resilience amid fluctuations, building on a recovery from Q1's lows.

Price and Volume Dynamics

The hs code 7602 value trend showed significant momentum shifts entering Q2, with imports climbing 16% month-over-month from April ($468.69 million) to May ($544.18 million), before easing 4.2% in June. This volatility aligns with typical industrial inventory cycles, where mid-year demand often peaks for construction and manufacturing sectors before seasonal monsoon slowdowns. The sequential rise in May suggests robust buying activity, possibly driven by stock replenishment after a dip in February ($392.39 million).

External Context and Outlook

Policy stability under a consistent 18% GST rate for aluminium scrap, coupled with industry advocacy for duty adjustments [Economic Times], likely contributed to import volatility as buyers navigated potential regulatory changes. (Economic Times) Global aluminium price fluctuations and currency exchange rates further influenced cost dynamics, sustaining cautious optimism for H2 2025 demand.

India Aluminium Scrap Import (HS 7602) HS Code Breakdown

Product Specialization and Concentration

According to yTrade data for Q2 2025, India's import activities under HS Code 7602 are overwhelmingly dominated by sub-code 76020010 for aluminium waste and scrap, which accounts for the entire trade volume with a unit price of 5.90 USD per kilogram. A minor sub-code, 76020090, shows negligible activity and an undefined unit price, making it an outlier excluded from further analysis.

Value-Chain Structure and Grade Analysis

The trade structure for India's HS Code 7602 imports is uniform, with all significant activity focused on aluminium waste and scrap as a bulk raw material. This homogeneity indicates a market for fungible commodities, where products are traded based on weight and standard grades rather than differentiated value-added stages, typical of scrap metal markets linked to global indices.

Strategic Implication and Pricing Power

For importers, the commodity nature of aluminium scrap under India's HS Code 7602 import framework means pricing power is limited and tied to international market fluctuations. The consistent 18% GST rate on these imports, as noted by ClearTax, provides cost predictability, but ongoing industry proposals for duty increases could impact future import strategies and margins.

Check Detailed HS Code 7602 Breakdown

India Aluminium Scrap Import (HS 7602) Origin Countries

Geographic Concentration and Dominant Role

In Q2 2025, the UNITED STATES is the dominant origin for India's Aluminium scrap imports by value, holding a 15.59% share. However, SAUDI ARABIA leads in weight share at 20.33%. The US shows a value share higher than its weight share (15.59% vs. 11.56%), indicating imports of higher-grade or cleaner Aluminium scrap. Its high frequency share of 19.41% points to frequent, possibly smaller shipments. In contrast, SAUDI ARABIA's weight share exceeds its value share (20.33% vs. 12.56%), suggesting bulk imports of lower-end or raw scrap material.

Origin Countries Clusters and Underlying Causes

The origin countries cluster into two groups based on India's Aluminium scrap import data. First, the High-Yield Cluster includes the UNITED STATES, UNITED ARAB EMIRATES, and UNITED KINGDOM, where value shares are slightly above weight shares, reflecting demand for specific, higher-quality scrap types. Second, the Volume/Hub Cluster is led by SAUDI ARABIA, with a significantly higher weight share, indicating it as a key source for bulk, raw scrap, likely for cost-effective processing. Other countries like AUSTRALIA and MALAYSIA show balanced shares, contributing to general supply without strong disparities.

Forward Strategy and Supply Chain Implications

India's heavy reliance on the UNITED STATES and SAUDI ARABIA for Aluminium scrap imports under HS Code 7602 poses supply chain risks, such as price volatility or logistical delays. Diversifying sources to include more balanced partners like AUSTRALIA or NETHERLANDS could enhance stability. Although news suggests industry calls for duty changes on aluminium scrap [Energy Economic Times], no confirmed policy shifts for Q2 2025 directly alter these partner shares, but monitoring such developments is prudent for future strategy.

Table: India Aluminium Scrap (HS 7602) Top Origin Countries (Source: yTrade)

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India Aluminium Scrap (HS 7602) Suppliers Analysis

Supplier Concentration and Dominance

In Q2 2025, the India Aluminium scrap import market shows strong supplier concentration. According to yTrade data, suppliers with high value and high frequency dominate, holding nearly 60% of the total import value. This group also accounts for over half of all shipments, indicating that the typical trade involves regular, bulk purchases from a core set of key players. The India Aluminium scrap import suppliers market is thus characterized by reliance on a few major actors for most volume and value.

Strategic Supplier Clusters and Trade Role

The remaining supplier groups include those with high value but low frequency, low value but high frequency, and low value with low frequency, each contributing smaller shares. The dominant suppliers, such as AL QARYAN GROUP and GREENLAND TRADING, have names indicating trading activities, pointing to an intermediated or agent-driven market structure. The profile of HS code 7602 suppliers suggests that intermediaries play a central role in facilitating imports, with less direct involvement from end-users or manufacturers.

Sourcing Strategy and Vulnerability

For importers in India, this structure means focusing on building strong relationships with high-volume traders to ensure steady supply, but it also creates vulnerability to price shifts or disruptions from these key partners. Diversifying sources could mitigate risks. Notably, industry reports from Economic Times highlight ongoing pressures to increase import duties on aluminium scrap, which may raise costs and affect sourcing decisions in the near future [Economic Times]. This reinforces the need for strategic planning around duty changes.

Table: India Aluminium Scrap (HS 7602) Top Suppliers List (Source: yTrade)

Check Full Aluminium scrap Supplier lists

Action Plan for Aluminium Scrap Market Operation and Expansion

Strategic Supply Chain Overview

India's Aluminium scrap Import market under hs code 7602 is a pure commodity trade. Price is driven by global scrap indices and material grade. The United States supplies higher-value scrap. Saudi Arabia provides bulk volume. High-volume traders control the Aluminium scrap supply chain. This creates price vulnerability and supply risk. The fixed 18% GST offers cost predictability. But potential duty hikes threaten future margins.

Action Plan: Data-Driven Steps for Aluminium scrap Market Execution and Expansion

• Use hs code 7602 trade data to identify and qualify new suppliers from balanced origins like Australia. This reduces over-reliance on dominant partners and stabilizes supply.
• Analyze shipment frequency of high-value suppliers to forecast price trends and negotiate better terms. This leverages trade patterns to secure cost advantages.
• Monitor policy platforms like Economic Times for alerts on potential duty changes affecting India Aluminium scrap Import. This enables proactive cost adjustment and avoids margin erosion.
• Diversify your supplier portfolio to include both high-frequency and emerging partners. This mitigates risk from disruptions in the Aluminium scrap supply chain.
• Optimize logistics by comparing weight-value ratios across origin countries to prioritize cost-efficient sourcing. This maximizes value per ton and improves overall profitability.

Take Action Now —— Explore India Aluminium scrap Import Data

Frequently Asked Questions

Q1. What is driving the recent changes in India Aluminium scrap Import 2025 Q2?

India's Aluminium scrap imports surged 16% in May 2025 due to mid-year industrial demand, then moderated in June. Volatility reflects inventory cycles and potential regulatory uncertainty around proposed duty changes.

Q2. Who are the main origin countries of India Aluminium scrap (HS Code 7602) 2025 Q2?

The UNITED STATES (15.59% value share) and SAUDI ARABIA (20.33% weight share) dominate, with the US supplying higher-grade scrap and Saudi Arabia providing bulk, lower-cost material.

Q3. Why does the unit price differ across origin countries of India Aluminium scrap Import?

Price differences stem from grade variations: the US ships higher-value aluminium waste (76020010 at 5.90 USD/kg), while Saudi Arabia focuses on bulk, lower-grade scrap.

Q4. What should importers in India focus on when buying Aluminium scrap?

Importers should prioritize relationships with high-volume traders (60% of market value) while diversifying sources to mitigate reliance on dominant suppliers like AL QARYAN GROUP.

Q5. What does this India Aluminium scrap import pattern mean for overseas suppliers?

Suppliers from the US and UAE benefit from demand for premium scrap, while bulk-focused exporters (e.g., Saudi Arabia) face competition on volume-driven pricing.

Q6. How is Aluminium scrap typically used in this trade flow?

Imported aluminium scrap serves as a raw material for India’s metal recycling industry, feeding into commodity-grade production tied to global price indices.

Detailed Monthly Report

India HS7602 Import Snapshot 2025 APR

India HS7602 Import Snapshot 2025 MAY

India HS7602 Import Snapshot 2025 JUN