India Iron Steel Scrap HS7204 Import Data 2025 August Overview

India Iron Steel Scrap (HS 7204) 2025 August Import: Key Takeaways

India’s Iron Steel Scrap (HS Code 7204) imports in August 2025 reveal a dual sourcing strategy: bulk, lower-grade scrap from the US (14.85% value share, 19.26% weight) and premium-grade material from trading hubs like the UAE (up to 10.00 USD/kg). The market shows stable demand with predictable costs, supported by a consistent 2.5% customs duty. This analysis, covering August 2025, is based on cleanly processed Customs data from the yTrade database.

India Iron Steel Scrap (HS 7204) 2025 August Import Background

What is HS Code 7204?

HS Code 7204 covers waste and scrap of iron or steel, including remelting ingots of iron or steel. This material is a critical input for steel production, particularly in electric arc furnaces, where recycled scrap is melted to produce new steel. Global demand remains stable due to its cost-effectiveness and environmental benefits, supporting industries like construction, automotive, and manufacturing.

Current Context and Strategic Position

In February 2022, India increased customs duties on Iron Steel Scrap (HS Code 7204) imports from 0% to 2.5%, a policy still in effect as of August 2025 [Recycling Today]. This adjustment reflects India’s balancing act between supporting domestic steel production and managing import dependency. Given India’s growing steel industry, HS Code 7204 imports remain strategically significant, requiring close monitoring of policy shifts and global scrap market trends in 2025.

India Iron Steel Scrap (HS 7204) 2025 August Import: Trend Summary

Key Observations

In August 2025, India's import of Iron Steel Scrap under HS Code 7204 experienced a dramatic surge, with the value skyrocketing to 198.38 billion USD and volume reaching 187.35 million kg, marking an extreme deviation from the typical monthly patterns.

Price and Volume Dynamics

The August figures represent a massive month-over-month increase from July's 629.87 million USD value, while the volume of 187.35 million kg was lower than several previous months, suggesting a sharp price per kg escalation. This volatility aligns with the scrap metal industry's characteristic sensitivity to bulk procurement cycles and sporadic large shipments, rather than steady seasonal demand. Year-over-year comparisons are not feasible with the provided data, but the anomaly underscores the market's inherent unpredictability in 2025.

External Context and Outlook

The absence of new policy changes in August 2025, as confirmed by [Recycling Today], with customs duty remaining at 2.5% since the 2022 increase, indicates that external factors like heightened industrial activity or one-off large orders likely drove the spike. Looking ahead, the India Iron Steel Scrap HS Code 7204 Import market may stabilize as typical demand cycles resume, but traders should monitor for similar outliers influenced by global scrap availability and domestic steel production needs.

India Iron Steel Scrap (HS 7204) 2025 August Import: HS Code Breakdown

Product Specialization and Concentration

According to yTrade data, India's Iron Steel Scrap HS Code 7204 Import for 2025 August is dominated by not elsewhere classified ferrous scrap, which holds a 58.4% value share and 85.6% weight share at a unit price of 722.28 USD per kilogram. This low price indicates a bulk commodity focus. A separate high-value segment exists for stainless steel scrap, with a unit price of 3872.21 USD per kilogram, highlighting its specialized nature.

Value-Chain Structure and Grade Analysis

The remaining imports under India Iron Steel Scrap HS Code 7204 in 2025 August fall into two main groups: medium-grade alloy steel scraps with unit prices from 1252 to 2858 USD per kilogram, and low-grade cast iron scrap at 372 USD per kilogram. This structure shows a mix of fungible bulk commodities and differentiated goods based on material grade, with turnings and other forms also contributing to higher-value niches.

Strategic Implication and Pricing Power

Importers of bulk scrap face limited pricing power due to its commodity nature, while high-grade specialties like stainless steel can command premiums. The stable 2.5% customs duty environment, as reported by [Global Trade Alert], adds a consistent cost factor for all segments of India Iron Steel Scrap HS Code 7204 Import in 2025 August, influencing overall strategy towards grade diversification.

Check Detailed HS 7204 Breakdown

India Iron Steel Scrap (HS 7204) 2025 August Import: Market Concentration

Geographic Concentration and Dominant Role

In August 2025, the United States was the top supplier for India Iron Steel Scrap HS Code 7204 Import, holding 14.85% of the value and 19.26% of the weight. The lower value share compared to weight share points to a lower unit price, around 0.77 USD/kg, indicating that the US primarily supplies bulk, lower-grade scrap to meet India's high-volume needs.

Partner Countries Clusters and Underlying Causes

Two main clusters emerge among the top suppliers. The first includes the US, UK, and Japan, which have high weight shares but lower value per weight, likely due to their large industrial bases generating abundant scrap for bulk export. The second cluster features the UAE and Singapore, with much higher value per weight—up to 10.00 USD/kg for the UAE—suggesting roles as trading hubs or sources of premium-grade scrap, possibly processed or sorted for higher quality.

Forward Strategy and Supply Chain Implications

For Indian buyers, the geographic spread supports a strategy of sourcing bulk scrap from cost-effective suppliers like the US, while tapping into hubs like the UAE for specialized grades. The customs duty on HS Code 7204 remained stable at 2.5% in August 2025, as noted in earlier reports [Recycling Today], ensuring predictable costs and encouraging diversified supply chains to mitigate risks.

Table: India Iron Steel Scrap (HS 7204) Top Partner Countries (Source: yTrade)

Get Complete Partner Countries Profile

India Iron Steel Scrap (HS 7204) 2025 August Import: Action Plan for Iron Steel Scrap Market Expansion

Strategic Supply Chain Overview

India Iron Steel Scrap Import 2025 August under HS Code 7204 operates as a two-tier market. Price is driven by material grade differentiation. Bulk, low-grade scrap trades at commodity prices. High-grade stainless and alloy scraps command significant premiums. Geopolitical stability and global scrap indexes also influence costs. The 2.5% customs duty adds a fixed cost layer for all transactions. Supply chain implications focus on security for bulk volumes and processing for value-added grades. India relies on bulk suppliers like the US for volume and hubs like the UAE for specialized quality. This creates a hybrid model of mass sourcing and premium procurement.

Action Plan: Data-Driven Steps for Iron Steel Scrap Market Execution

• Prioritize contracts with high-frequency, high-volume buyers. Use transaction data to identify top partners and negotiate long-term agreements. This ensures stable demand and reduces market volatility.
• Diversify sourcing between bulk and premium suppliers. Balance purchases from cost-effective bulk exporters (e.g., US) and quality-focused hubs (e.g., UAE). This mitigates supply risk and covers both volume and specialty needs.
• Analyze buyer clusters to tailor sales terms. Offer bulk discounts to high-volume buyers and flexible terms to niche importers. This maximizes revenue across different buyer behaviors.
• Monitor global scrap indexes and duty changes. Use real-time data to anticipate price shifts and adjust procurement timing. This protects margins from input cost fluctuations.
• Leverage HS Code 7204 detail to track grade-based trends. Focus import strategies on high-margin stainless and alloy scraps. This captures value where pricing power is strongest.

Take Action Now —— Explore India Iron Steel Scrap Import Data

Frequently Asked Questions

Q1. What is driving the recent changes in India Iron Steel Scrap Import 2025 August?

The August 2025 surge to 198.38 billion USD reflects extreme volatility, likely due to bulk procurement cycles or one-off large orders, as the market is highly sensitive to sporadic demand shifts.

Q2. Who are the main partner countries in this India Iron Steel Scrap Import 2025 August?

The US dominates with 14.85% of import value, followed by the UAE and UK, which form two distinct clusters—bulk suppliers (US/UK) and premium-grade hubs (UAE/Singapore).

Q3. Why does the unit price differ across India Iron Steel Scrap Import 2025 August partner countries?

Price gaps stem from product specialization: bulk ferrous scrap averages 722.28 USD/kg, while stainless steel scrap commands 3872.21 USD/kg, with UAE/Singapore supplying higher-value grades.

Q4. What should importers in India focus on when buying Iron Steel Scrap?

Prioritize long-term contracts with high-volume frequent buyers (64.68% of value) and diversify sourcing—bulk scrap from the US and premium grades from trading hubs like the UAE.

Q5. What does this India Iron Steel Scrap import pattern mean for overseas suppliers?

Suppliers like the US benefit from stable bulk demand, while UAE/Singapore can leverage niche opportunities for high-grade scrap, given India’s dual need for volume and quality.

Q6. How is Iron Steel Scrap typically used in this trade flow?

It serves as a key raw material for steel production, with bulk scrap used in general manufacturing and high-grade variants (e.g., stainless steel) for specialized applications.