India Iron Steel Scrap Import Market -- HS 7204 Trade Data & Price Trend (Q2 2025)

India Iron Steel Scrap Import (HS 7204) Key Takeaways

India's iron steel scrap imports under HS Code 7204 in Q2 2025 were dominated by low-grade bulk ferrous scrap (64% share), with volatile monthly values averaging $646 million amid erratic procurement cycles. The market relies heavily on concentrated US suppliers like Argentum Metals USA Inc, creating vulnerability despite higher-grade opportunities in stainless and alloy scraps. Analysis of HS Code 7204 trade data reveals a preference for US-sourced scrap, where frequent small-lot shipments support just-in-time supply chains. This report is based on cleanly processed customs data from the yTrade database for Q2 2025.

India Iron Steel Scrap Import (HS 7204) 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 category is critical for steel producers and foundries, 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

In February 2022, India reinstated a 2.5% customs duty on HS Code 7204 imports, reversing a temporary 0% rate [Recycling Today]. This policy remains in effect as of Q2 2025, reflecting India's balancing act between supporting domestic steelmakers and ensuring affordable raw material access. India's iron steel scrap import market is significant, with major suppliers including the US, Mexico, and Vietnam [Global Trade Alert]. Monitoring HS Code 7204 trade data is essential for stakeholders, as shifts in duty or global scrap availability could impact India's steel industry competitiveness.

India Iron Steel Scrap Import (HS 7204) Price Trend

Key Observations

In Q2 2025, India's Iron Steel Scrap imports under HS code 7204 demonstrated volatile performance, with monthly values fluctuating between $594.24 million in June and $696.76 million in May, averaging approximately $646 million per month for the quarter. This represents a shift from the elevated levels seen in Q1, particularly the March peak of $880.34 million.

Price and Volume Dynamics

The India Iron Steel Scrap Import trend showed pronounced instability throughout early 2025, beginning with a January high of $797.24 million before a sharp drop in February to $553.31 million and a recovery in March. This volatility carried into Q2, with April imports at $647.58 million, a slight rise in May, and a decline in June. The erratic pattern suggests adjustments in procurement cycles, possibly driven by domestic steel production demands or global scrap price swings, rather than consistent seasonal factors.

External Context and Outlook

The stable import duty of 2.5% on HS code 7204, unchanged since February 2022 [Recycling Today], has likely contributed to this volatility by maintaining a predictable cost environment without recent policy shocks. Looking forward, the hs code 7204 value trend is expected to remain influenced by domestic industrial activity and international scrap supply dynamics, rather than tariff adjustments. (Recycling Today)

India Iron Steel Scrap Import (HS 7204) HS Code Breakdown

Product Specialization and Concentration

According to yTrade data for Q2 2025, India's import under HS Code 7204 is heavily concentrated in general ferrous scrap, with the sub-code 72044900 for "ferrous waste and scrap not elsewhere specified" dominating at a 64 percent value share. This product has a low unit price of 1.28 USD per kilogram, indicating it is a bulk, low-grade commodity with minimal specialization. Two anomalies are present and isolated from the main analysis: sub-code 72045000 for remelting scrap ingots with no priced data, and 72043000 for tinned iron or steel scrap at a high 21.37 USD per kilogram, suggesting rare or processed forms.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes fall into clear grade-based categories. Bulk, low-value scrap includes cast iron waste (72041000) at 0.97 USD per kilogram. Medium-grade scrap comprises stainless steel (72042190) and alloy steel excluding stainless (72042990 and 72042920), with prices ranging from 3.03 to 4.50 USD per kilogram. Higher-value processed forms like turnings and shavings (72044100) command 5.83 USD per kilogram. This structure shows that India's HS Code 7204 import trade is primarily in fungible bulk commodities, where prices are closely tied to material grade and form rather than brand differentiation.

Strategic Implication and Pricing Power

For importers, pricing power is limited for bulk scrap due to commodity-like competition, but higher-grade varieties like stainless and alloy scraps offer better margins through quality differentiation. The consistent 2.5 percent import duty on HS Code 7204, as reported by Recycling Today, adds to cost pressures, making efficient sourcing and grade optimization key strategies. Analyzing HS Code 7204 trade data suggests focusing on premium scrap grades can mitigate price volatility and enhance profitability in India's import market.

Check Detailed HS Code 7204 Breakdown

India Iron Steel Scrap Import (HS 7204) Origin Countries

Geographic Concentration and Dominant Role

The UNITED STATES is the dominant origin for India's Iron Steel Scrap imports in Q2 2025, holding a 15.43% value share. Its value share slightly exceeds its weight share of 14.83%, indicating a preference for higher-grade scrap varieties. The high frequency share of 20.84% points to frequent, small-lot shipments, typical for just-in-time supply chains in scrap metal trade.

Origin Countries Clusters and Underlying Causes

Countries cluster into three profiles based on India's HS Code 7204 import data. The High-Yield Cluster includes THAILAND, where value share outweighs weight share, suggesting premium scrap grades. The Volume/Hub Cluster features UNITED KINGDOM, AUSTRALIA, and MOZAMBIQUE, with weight shares dominating value, indicating bulk imports for steel production processing. The Transactional Cluster is led by the UNITED STATES, characterized by high shipment frequency, which supports regular supply needs in India's scrap metal market.

Forward Strategy and Supply Chain Implications

India's reliance on the UNITED STATES for high-grade scrap requires monitoring for supply stability, especially with a 2.5% import duty on HS Code 7204 [Recycling Today], which may elevate costs. Diversifying sourcing to volume-focused origins like AUSTRALIA or MOZAMBIQUE could mitigate risks and optimize India Iron Steel Scrap import strategies. Analyzing HS Code 7204 trade data shows opportunities to balance cost and quality in supply chains.

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

Get Complete Origin Countries Profile

India Iron Steel Scrap (HS 7204) Suppliers Analysis

Supplier Concentration and Dominance

In Q2 2025, the India Iron Steel Scrap import market shows strong supplier concentration. According to yTrade data, suppliers with high value and high frequency dominate, handling over 70% of the total import value. This group represents the typical trade for India Iron Steel Scrap import suppliers, characterized by large, regular shipments that form the market backbone.

Strategic Supplier Clusters and Trade Role

The remaining clusters include high-value low-frequency suppliers, low-value high-frequency ones, and low-value low-frequency players. The dominant high-value high-frequency group, with companies like Argentum Metals USA Inc and Global Metcorp Limited, points to an intermediated market. The profile of HS code 7204 suppliers suggests heavy reliance on trading entities, not direct manufacturers, shaping a agent-driven trade flow.

Sourcing Strategy and Vulnerability

For Indian importers, this structure means focusing on building strong relationships with key high-frequency suppliers to ensure steady supply. The 2.5% import duty on HS code 7204, as reported by [Recycling Today], adds cost pressure, making efficiency crucial. Relying heavily on a few suppliers increases vulnerability to disruptions, so diversifying within the dominant cluster could mitigate risks while maintaining volume.

Table: India Iron Steel Scrap (HS 7204) Top Suppliers List (Source: yTrade)

Check Full Iron Steel Scrap Supplier lists

Action Plan for Iron Steel Scrap Market Operation and Expansion

Strategic Supply Chain Overview

Price is primarily driven by material grade and form. Bulk, low-grade ferrous scrap dominates India's Iron Steel Scrap Import, with prices as low as $0.97/kg. Higher-grade stainless and alloy scraps command premiums up to $5.83/kg. The 2.5% import duty on HS Code 7204 adds constant cost pressure. Geopolitical and supply risks are high due to heavy reliance on the United States (15.43% value share) for frequent, high-grade shipments.

The Iron Steel Scrap supply chain is agent-driven and concentrated. Over 70% of import value comes from high-frequency suppliers like Argentum Metals USA Inc. This creates vulnerability to disruptions. India's role is as a processing hub for bulk commodities, requiring steady volume flow. The hs code 7204 trade data shows opportunities to balance cost and quality through strategic sourcing.

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

• Use hs code 7204 trade data to identify and target high-value, high-frequency suppliers. Build strong relationships with firms like Argentum Metals to secure consistent supply of premium scraps. This ensures volume stability and access to better-margin grades.
• Analyze shipment data from the United States to monitor for supply disruptions. Set up alerts for any frequency or volume changes. This protects your operations from sudden shortages of critical high-grade scrap.
• Diversify your sourcing portfolio to include volume-focused origins like Australia and Mozambique. Use trade data to identify suppliers in these regions. This reduces over-reliance on any single country and mitigates geopolitical risk.
• Focus procurement on higher-grade scraps like stainless steel (72042190) and alloy steel (72042990). Their higher unit value improves margins and helps offset the fixed 2.5% import duty, increasing overall profitability.
• Track the price differentials between bulk scrap and processed forms like turnings (72044100). Shift purchasing towards higher-yield products when the spread is favorable. This optimizes cost efficiency within the India Iron Steel Scrap Import strategy.

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 Q2?

India's Iron Steel Scrap imports showed volatile monthly values in Q2 2025, ranging from $594.24 million to $696.76 million, likely due to fluctuating domestic steel demand and global scrap price swings rather than seasonal factors.

Q2. Who are the main origin countries of India Iron Steel Scrap (HS Code 7204) 2025 Q2?

The UNITED STATES dominated with a 15.43% value share, followed by THAILAND (high-yield cluster) and volume-focused origins like the UNITED KINGDOM and AUSTRALIA.

Q3. Why does the unit price differ across origin countries of India Iron Steel Scrap Import?

Price differences stem from scrap grade variations—bulk low-grade scrap (e.g., cast iron waste at $0.97/kg) contrasts with premium grades like stainless steel ($3.03–$4.50/kg) and processed turnings ($5.83/kg).

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

Importers should prioritize high-grade scrap (e.g., stainless/alloy steel) for better margins, diversify among high-frequency suppliers like Argentum Metals USA, and monitor bulk scrap’s commodity-like pricing.

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

Suppliers in the U.S. and high-yield countries (e.g., Thailand) benefit from steady demand for premium scrap, while bulk-focused origins must compete on volume and cost efficiency.

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

Imported scrap primarily feeds India’s steel production, with bulk grades used for basic processing and higher-grade scraps for specialized alloy manufacturing.

Detailed Monthly Report

India HS7204 Import Snapshot 2025 APR

India HS7204 Import Snapshot 2025 MAY

India HS7204 Import Snapshot 2025 JUN