India Steel Scrap HS7204 Import Data 2025 March Overview

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

India’s Steel Scrap imports under HS Code 7204 in March 2025 reveal a market prioritizing quality, with CHILE dominating as the premium supplier (15.84% value share) due to its high-grade material, while bulk sources like MALAYSIA offer cost-efficient alternatives. Buyer concentration remains moderate, ensuring balanced competition, and the market shows stable demand with no sharp volatility. This analysis, covering March 2025, is based on processed Customs data from the yTrade database.

India Steel Scrap (HS 7204) 2025 March Import Background

What is HS Code 7204?

HS Code 7204 covers waste and scrap of iron or steel, including remelting ingots of these metals. This product is a critical raw material for steelmakers and foundries, as it reduces energy consumption and emissions compared to primary production. Global demand remains stable due to its cost-effectiveness and sustainability benefits in steel recycling.

Current Context and Strategic Position

India's Steel Scrap (HS Code 7204) import landscape has seen recent policy shifts, including a 2022 tariff increase from 0% to 2.5% [Global Trade Alert]. As of March 2025, market vigilance is essential, given India's reliance on scrap imports to meet domestic steel production demands. The country's strategic position as a major importer underscores the need to monitor trade policies and global scrap supply dynamics closely.

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

Key Observations

India Steel Scrap HS Code 7204 Import 2025 March surged to $880.34 million in value, with volume reaching 412.20 million kg. This represents a sharp recovery from February’s dip, signaling strong underlying demand.

Price and Volume Dynamics

March imports jumped 59% month-over-month in value terms, while volume more than doubled from January’s levels. The rebound aligns with typical seasonal patterns—Q1 often sees accelerated purchasing as construction and manufacturing activity resume post-monsoon and winter slowdowns. Year-over-year comparisons are not available, but the sequential strengthening suggests robust industrial offtake and inventory rebuilding.

External Context and Outlook

The import surge may also reflect market anticipation around trade policy. India increased customs duty on ferrous scrap (HS 7204) to 2.5% in February 2022 [Global Trade Alert], and buyers sometimes front-load shipments when further duty changes are feared. If policy remains stable, imports could normalize, though underlying demand from steel producers remains a key driver.

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

Product Specialization and Concentration

In March 2025, India's import of Steel Scrap under HS Code 7204 is heavily concentrated in general ferrous waste and scrap, not elsewhere classified. According to yTrade data, the sub-code 72044900 accounts for 75% of the import value and 89% of the weight, with a unit price of $1.80 per kilogram, indicating a bulk, low-value commodity trade. An anomaly is present in sub-code 72043000 (tinned iron or steel scrap), which has no recorded weight and an uncalculable unit price, isolating it from the main analysis.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes fall into three clear groups based on quality and form: low-grade bulk scrap like cast iron (72041000 at $0.93/kg), medium-grade alloy steels (72042990 and 72042920 around $3.15-$3.66/kg), and high-value processed forms such as stainless steel (72042190 at $6.18/kg) and turnings or shavings (72044100 at $7.87/kg). This structure shows a mix of fungible bulk commodities tied to weight-based pricing and differentiated, higher-value products that command premium prices due to specific grades or processing.

Strategic Implication and Pricing Power

For India Steel Scrap HS Code 7204 Import in 2025 March, bulk importers face low pricing power due to commodity nature, focusing on cost efficiency and volume. Suppliers of specialty grades like stainless or turnings hold stronger pricing leverage, targeting niche markets. Strategic focus should prioritize securing high-margin, differentiated scrap while managing bulk flows for steady supply.

Check Detailed HS 7204 Breakdown

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

Geographic Concentration and Dominant Role

In March 2025, India's import of Steel Scrap HS Code 7204 is led by CHILE, which holds the highest value share at 15.84% against a weight share of 2.30%, pointing to a higher unit price and likely superior quality scrap. This disparity suggests that CHILE supplies premium-grade material, crucial for efficient steel production.

Partner Countries Clusters and Underlying Causes

The import partners form distinct clusters: CHILE, KUWAIT, and JAPAN show high value relative to weight, indicating sources with advanced recycling and cleaner scrap. MALAYSIA and BAHRAIN have high quantity but low value ratios, reflecting bulk, lower-cost supplies that may contain more impurities. The UNITED STATES and UNITED KINGDOM offer balanced trade with reliable volumes and moderate quality.

Forward Strategy and Supply Chain Implications

Importers should focus on high-quality sources like CHILE to improve steel output quality, while using bulk suppliers for cost savings. Supply chains need robust quality checks and adaptability to scrap price fluctuations to maintain production efficiency.

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

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

Strategic Supply Chain Overview

The India Steel Scrap Import market for HS Code 7204 in March 2025 is fundamentally a commodity trade. Price is driven by scrap quality and grade, with bulk general scrap at $1.80/kg and premium stainless or turnings reaching $7.87/kg. Geopolitical risk, like past tariff changes, also impacts cost. The supply chain implication is a dual need: secure high-quality material from partners like Chile for efficient production, while managing bulk flows from sources like Malaysia for cost stability. Buyer concentration among high-volume, frequent purchasers demands strong relationship management to ensure supply security.

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

• Use sub-code unit price analysis to target buyers of high-grade scrap like stainless steel (72042190). This maximizes margin by focusing sales on premium segments.
• Leverage buyer frequency data to negotiate long-term contracts with dominant high-volume importers. This ensures stable revenue and reduces market volatility risk.
• Monitor Chilean import metrics for early signals of quality scrap availability shifts. This allows proactive sourcing to maintain production efficiency.
• Track policy alerts for HS Code 7204 to anticipate tariff changes affecting cost. This protects profitability against sudden duty hikes.
• Analyze weight-value ratios by country to diversify suppliers between quality and bulk sources. This balances cost control with output quality needs.

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 March?

The surge in March 2025 imports (59% MoM value growth) reflects seasonal demand recovery and potential stockpiling ahead of feared policy changes, following India’s 2022 duty hike on ferrous scrap.

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

CHILE leads with 15.84% value share, followed by KUWAIT and JAPAN, which supply premium-grade scrap, while MALAYSIA and BAHRAIN dominate bulk, lower-cost volumes.

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

Prices vary by scrap grade: bulk low-grade (e.g., cast iron at $0.93/kg) contrasts with high-value processed forms like stainless steel ($6.18/kg) or turnings ($7.87/kg).

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

Prioritize contracts with dominant bulk buyers for stability and secure high-margin specialty grades (e.g., stainless steel) from premium suppliers like CHILE to balance quality and cost.

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

Suppliers of premium scrap (e.g., CHILE, JAPAN) hold pricing power, while bulk exporters must compete on volume efficiency due to India’s concentrated, high-frequency buyer market.

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

Imported scrap feeds steel production, with bulk grades used for cost-efficient output and high-quality grades enhancing specialized alloy manufacturing.