India Iron Steel Scrap HS7204 Import Data 2025 July Overview

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

India's Iron Steel Scrap imports under HS Code 7204 in July 2025 reveal a bulk, lower-grade commodity dominated by the UNITED STATES, supplying 33.66% of weight at 0.46 USD/kg. The market shows heavy reliance on developed economies like the US and UK for stable quality, alongside emerging sources like Malaysia for cost efficiency. Importers must diversify suppliers to mitigate risks, especially with the 2.5% customs duty adding cost pressure. This analysis, covering July 2025, is based on cleanly processed Customs data from the yTrade database.

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

What is HS Code 7204?

HS Code 7204 covers waste and scrap of iron or steel, including remelting ingots of these materials. This category is critical for steel producers, as recycled scrap serves as a cost-effective raw material for manufacturing. Global demand remains stable due to its role in sustainable steel production and circular economy initiatives.

Current Context and Strategic Position

India's import duty on Iron Steel Scrap (HS Code 7204) stands at 2.5% as of July 2025, a rate reinstated in February 2022 after a brief duty-free period [Recycling Today]. The policy reflects India's balancing act between supporting domestic steel production and managing raw material costs. Given India's reliance on scrap imports to meet industrial demand, monitoring HS Code 7204 Import trends in 2025 remains essential for stakeholders navigating supply chain and pricing dynamics.

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

Key Observations

In July 2025, India's imports of Iron Steel Scrap under HS Code 7204 reached $629.87 million in value and 544.27 million kilograms in volume, showing a solid monthly performance.

Price and Volume Dynamics

Month-over-month, July's import value increased by 6% from June, while volume surged 37%, indicating stronger demand likely driven by seasonal industrial activity post-monsoon, which typically boosts steel production and scrap recycling needs. Quarterly trends show volatility, with Q2 averages lower than July's figures, suggesting a rebound in import momentum as construction and manufacturing sectors ramp up.

External Context and Outlook

The customs duty on ferrous scrap imports has held steady at 2.5% since early 2022, as reported by Recycling Today, providing policy consistency that supports stable trade flows. Looking ahead, India's Iron Steel Scrap import trends for 2025 will likely hinge on domestic economic growth and global metal price movements, rather than sudden regulatory shifts.

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

Product Specialization and Concentration

In July 2025, India's import of Iron Steel Scrap under HS Code 7204 was heavily concentrated in general bulk scrap. According to yTrade data, HS Code 72044900, "Ferrous waste and scrap; n.e.c. in heading no. 7204", dominated with a 62% value share, driven by its low unit price of 1.00 USD per kilogram, highlighting a focus on high-volume, low-value material.

Value-Chain Structure and Grade Analysis

The import structure for India Iron Steel Scrap HS Code 7204 in 2025 July includes bulk cast iron scrap, higher-grade stainless and alloy steel scrap, and processed forms like turnings. This mix indicates a trade in fungible bulk commodities, where prices are largely tied to market indices due to the prevalence of standardized, low-cost products.

Strategic Implication and Pricing Power

For India's Iron Steel Scrap Import under HS Code 7204, the reliance on low-value bulk materials limits pricing power, with import costs increased by a 2.5% customs duty as reported by [Recycling Today]. This duty pressures margins, suggesting importers should prioritize efficient sourcing and cost management to maintain competitiveness.

Check Detailed HS 7204 Breakdown

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

Geographic Concentration and Dominant Role

In July 2025, India's import of Iron Steel Scrap under HS Code 7204 is heavily concentrated, with the UNITED STATES as the dominant supplier, accounting for 13.30% of import value and 33.66% of weight. The lower value ratio compared to weight ratio suggests a commodity product with a relatively low unit price of approximately 0.46 USD/kg from the US, indicating bulk, lower-grade sourcing typical for scrap metal.

Partner Countries Clusters and Underlying Causes

The top partners form two clusters: developed economies like the UNITED STATES, UNITED KINGDOM, and AUSTRALIA with high import volumes, likely due to stable scrap quality and established trade routes; and emerging markets such as MALAYSIA, BRAZIL, and THAILAND, which may offer cost-effective sources driven by competitive pricing and regional proximity, supporting India's need for affordable raw materials.

Forward Strategy and Supply Chain Implications

Importers should diversify sources to mitigate price risks and leverage lower-cost options from emerging markets, while monitoring policy changes like the 2.5% customs duty on HS Code 7204 [Global Trade Alert], which adds to costs (Global Trade Alert). This duty reinforces the need for efficient logistics and cost management in India's Iron Steel Scrap supply chain for July 2025.

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

Get Complete Partner Countries Profile

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

Strategic Supply Chain Overview

India Iron Steel Scrap Import under HS Code 7204 in July 2025 is a bulk commodity market. Price is driven by global scrap indices and low unit costs, averaging 1.00 USD/kg for general scrap. The 2.5% customs duty adds cost pressure. Supply chain implications include high reliance on the US (33.66% of weight) for volume, creating vulnerability to geopolitical and logistics risks. Buyers are concentrated, with 67.97% of value from high-frequency, high-volume importers like steel mills, emphasizing the need for stable, cost-efficient sourcing.

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

• Diversify sourcing beyond the US by targeting emerging markets like Malaysia or Brazil. Use trade data to compare unit prices and logistics costs. This reduces dependency on a single supplier and mitigates price volatility.
• Analyze buyer purchase frequency to align inventory with major mills' production cycles. Schedule shipments to match their high-volume demand periods. This prevents overstock and ensures timely supply.
• Negotiate bulk contracts with top buyers representing 67.97% of import value. Leverage volume commitments to secure discounts and offset the 2.5% customs duty. This protects margins in a low-price environment.
• Monitor real-time global scrap indices and policy changes, like duty adjustments. Use data alerts to adapt sourcing strategies quickly. This avoids cost surprises and capitalizes on market shifts.

Forward-Looking Guidance

Success in India Iron Steel Scrap Import for July 2025 hinges on data agility. Traditional methods miss sub-component trends and buyer behavior shifts. Focus on granular trade intelligence for HS Code 7204 to drive decisions. This approach ensures competitive advantage in a price-sensitive market.

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 July?

India's Iron Steel Scrap imports surged in July 2025, with a 6% value and 37% volume increase from June, likely due to post-monsoon industrial demand. The market is dominated by bulk, low-value scrap (62% share under HS Code 72044900), reinforcing reliance on high-volume, low-cost sourcing.

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

The UNITED STATES is the top supplier, contributing 13.30% of import value and 33.66% of weight. Other key partners include the UNITED KINGDOM, AUSTRALIA, and emerging markets like MALAYSIA and BRAZIL, offering cost-effective alternatives.

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

Price differences stem from product specialization—bulk scrap (e.g., HS Code 72044900) averages 1.00 USD/kg, while the US supplies lower-grade scrap at 0.46 USD/kg. Higher-grade stainless/alloy scraps command premium pricing but are less prevalent.

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

Importers should prioritize securing contracts with high-volume, frequent buyers (67.97% of market value) while diversifying sources to mitigate risks from the 2.5% customs duty and US supply concentration.

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

Suppliers benefit from steady demand but face margin pressure due to India’s focus on low-cost bulk scrap. Emerging markets like Malaysia and Brazil have growth opportunities as India seeks cost-efficient alternatives.

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

The scrap is primarily used as raw material for steel production, with bulk grades favored for cost-sensitive applications like construction and manufacturing, reflecting India’s industrial demand cycles.