India Steel Scrap HS7204 Import Data 2025 April Overview

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

India Steel Scrap (HS Code 7204) imports in April 2025 reveal a market driven by high-grade U.S. scrap, commanding premium prices due to superior quality, while balanced suppliers like the UK and Australia ensure stable mid-grade supply. Buyer concentration remains moderate, reducing dependency risk, and imports show steady demand despite global trade adjustments. The U.S. dominates as the top source, highlighting India’s reliance on industrialized economies for quality scrap. This analysis covers April 2025 and is based on processed Customs data from the yTrade database.

India Steel Scrap (HS 7204) 2025 April Import Background

What is HS Code 7204?

HS Code 7204 covers waste and scrap of iron or steel; remelting ingots of iron or steel, primarily used as raw material in steel production. This category is critical for India’s steel industry, which relies on scrap to reduce reliance on iron ore and lower production costs. Global demand remains stable due to recycling efficiency and cost advantages over virgin materials.

Current Context and Strategic Position

In February 2022, India reinstated a 2.5% customs duty on HS 7204 imports after a temporary reduction, as per the Finance Bill 2022 [Global Trade Alert]. This policy shift reflects efforts to balance domestic industry support with import reliance. India’s steel scrap imports under HS 7204 remain significant, driven by robust steel production and recycling demand. Monitoring trade policies and global scrap prices is essential for stakeholders in India’s Steel Scrap HS Code 7204 Import 2025 April market.

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

Key Observations

In April 2025, India's import of Steel Scrap under HS Code 7204 reached $647.58 million in value and 366.62 million kilograms in volume, marking a significant monthly performance in the scrap metal trade.

Price and Volume Dynamics

The import value for April showed a notable decrease from March's $880.34 million, while volume dipped from 412.20 million kg, reflecting typical seasonal adjustments in steel scrap demand. This decline aligns with common industry cycles where post-Q1 inventory replenishment often leads to reduced import activity as mills optimize stocks ahead of monsoon-related slowdowns in construction and manufacturing. Year-over-year comparisons are not available in the provided data, but the sequential drop highlights a cooling phase in procurement patterns.

External Context and Outlook

The stable import duty of 2.5% on HS Code 7204, maintained since its reinstatement in 2022 [Recycling Today], has provided cost predictability, supporting consistent trade flows despite monthly volatility. Looking ahead, India Steel Scrap HS Code 7204 Import 2025 April trends may continue to be influenced by global steel price movements and domestic industrial demand cycles, with no imminent policy shifts expected to alter the duty structure.

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

Product Specialization and Concentration

According to yTrade data, the India Steel Scrap HS Code 7204 Import market in April 2025 is heavily concentrated in general ferrous waste and scrap, specifically HS 72044900, which holds over 60% of the value share and 80% of the weight share. This sub-code, described as "Ferrous waste and scrap; n.e.c. in heading no. 7204", has a low unit price of 1.30 USD per kilogram, indicating its role as a bulk commodity with minimal value addition. An anomaly is present in HS 72043000 for tinned iron or steel scrap, which has negligible volume and an unrecorded unit price, isolating it from the main analysis.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes can be grouped into three categories based on grade: high-grade stainless steel scrap (HS 72042190) at 7.06 USD per kilogram, medium-grade alloy steel scrap (HS 72042990) at 2.27 USD per kilogram, and low-grade general and cast iron scrap (e.g., HS 72041000 at 1.02 USD per kilogram). This structure shows a clear differentiation in quality, with the market trading largely in fungible bulk commodities where prices are tied to material grade and form rather than brand or processing.

Strategic Implication and Pricing Power

For India Steel Scrap HS Code 7204 Import in 2025 April, buyers should prioritize sourcing higher-grade scraps like stainless steel to leverage better pricing power and margins, while suppliers of low-grade materials face more competitive, volume-driven markets. The import duty of 2.5% on HS 7204, as noted in [Recycling Today], adds a fixed cost layer, making efficient logistics and grade selection critical for strategic advantage.

Check Detailed HS 7204 Breakdown

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

Geographic Concentration and Dominant Role

India Steel Scrap HS Code 7204 Import 2025 April is heavily concentrated, with the UNITED STATES dominating as the top source, accounting for 19.27% of import value but only 6.20% of weight, indicating it supplies higher-grade scrap at a premium unit price. This disparity suggests that the US provides superior quality material, likely due to advanced recycling processes, while other major suppliers like the UNITED KINGDOM and AUSTRALIA show more balanced ratios, pointing to standard-grade scrap.

Partner Countries Clusters and Underlying Causes

The import partners form three clear clusters: first, high-value sources like the US and BRAZIL, where value ratios significantly exceed weight ratios, implying premium scrap from industrialized economies with efficient recycling. Second, balanced suppliers such as the UK, AUSTRALIA, and MALAYSIA, with moderate value-to-weight ratios, reflect stable, mid-grade scrap flows from established trade partners. Third, weight-heavy contributors like MOZAMBIQUE and JAPAN, where weight ratios are high but value is lower, suggest bulk, lower-quality scrap, possibly due to geographic proximity or less processed materials.

Forward Strategy and Supply Chain Implications

For buyers, prioritizing high-value sources like the US can maximize quality despite the 2.5% import duty [Recycling Today], while diversifying into balanced clusters ensures supply stability. The duty hike (globaltradealert.org) calls for cost-efficient sourcing, possibly leveraging FTAs with key partners to reduce expenses and secure reliable grades for India's steel production needs.

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

Get Complete Partner Countries Profile

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

Strategic Supply Chain Overview

The India Steel Scrap Import 2025 April market under HS Code 7204 is a commodity-driven trade. Price is primarily determined by material grade. High-grade stainless scrap commands premiums, while low-grade bulk scrap trades at volume discounts. The 2.5% import duty adds a fixed cost layer for all transactions. Supply chain success hinges on securing consistent, high-quality material flows from reliable partners like the United States. The market is dominated by large, frequent buyers who demand efficient, high-volume logistics. Geopolitical shifts or duty changes pose the main cost risks.

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

• Prioritize high-grade stainless steel scrap (HS 72042190) in sourcing. This leverages better pricing power and margins due to its premium value in the market.
• Use buyer frequency data to lock in contracts with high-volume, regular importers. This ensures stable sales and reduces market volatility from sporadic buyers.
• Diversify sourcing among balanced partners like the UK and Australia. This mitigates risk from over-reliance on any single supplier and ensures grade consistency.
• Monitor US export trends and unit prices monthly. This allows rapid adjustment to quality shifts and cost changes from the top value-added source.
• Factor the 2.5% duty into all cost models for HS Code 7204. This prevents margin erosion and supports accurate pricing in negotiations.

Take Action Now —— Explore India Steel Scrap Import Data

Frequently Asked Questions

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

The April 2025 import value dropped to $647.58 million from March’s $880.34 million, reflecting seasonal demand adjustments as mills optimize stocks ahead of monsoon-related slowdowns.

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

The UNITED STATES dominates with 19.27% of import value, followed by the UNITED KINGDOM and AUSTRALIA, which supply balanced mid-grade scrap.

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

Prices vary by material grade: high-grade stainless steel scrap (HS 72042190) averages 7.06 USD/kg, while low-grade general scrap (HS 72041000) trades at 1.02 USD/kg.

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

Prioritize high-grade scraps like stainless steel for better margins and nurture relationships with dominant high-volume buyers, who drive 76.14% of import value.

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

Suppliers from industrialized economies (e.g., US, Brazil) can leverage premium pricing for high-grade scrap, while bulk suppliers must compete on volume efficiency.

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

Steel scrap is primarily used as raw material for steel production, with grades tailored for specific industrial needs, from construction to high-precision manufacturing.