India Steel Scrap HS7204 Import Data 2025 May Overview

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

India’s Steel Scrap Import (HS Code 7204) in May 2025 reveals a market reliant on premium-grade material, with Malaysia dominating as the high-value supplier at 2.95 USD/kg, signaling superior quality. Buyer concentration remains a risk, while geographic diversification into high-value clusters like Thailand could mitigate dependency. The analysis, covering May 2025, is based on cleanly processed Customs data from the yTrade database.

India Steel Scrap (HS 7204) 2025 May Import Background

What is HS Code 7204?

HS Code 7204 refers to waste and scrap of iron or steel; remelting ingots of iron or steel, a critical raw material for steel production. This category includes recycled ferrous metals, which are essential for reducing reliance on virgin iron ore and lowering energy consumption in steelmaking. Global demand remains stable due to its cost-effectiveness and sustainability benefits, particularly in construction, automotive, and manufacturing industries.

Current Context and Strategic Position

In February 2022, India increased customs duties on HS Code 7204 imports from 0% to 2.5% [Recycling Today], signaling a shift toward protecting domestic scrap processing industries. As of 2025, India's steel scrap imports under HS Code 7204 remain strategically significant, driven by the country's growing steel production and emphasis on circular economy practices. Monitoring India's May 2025 trade policies is crucial, as tariff adjustments or supply chain disruptions could impact global scrap metal markets.

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

Key Observations

In May 2025, India's Steel Scrap imports under HS Code 7204 reached 696.76 million USD in value and 449.38 million kg in volume, marking a strong monthly performance amid fluctuating trade conditions.

Price and Volume Dynamics

Month-over-month, import volume surged 22.6% from April 2025, while value increased 7.6%, reflecting typical seasonal demand spikes in steel scrap driven by post-monsoon construction and industrial activity in India. This rebound from April's lower figures suggests robust stock replenishment cycles, though quarterly comparisons show volatility, with March 2025 also recording high imports before a dip in April.

External Context and Outlook

The import resilience aligns with the ongoing 2.5% customs duty on HS Code 7204 scrap, implemented in February 2022 [Global Trade Alert], which has likely been absorbed by strong domestic steel demand. With industrial production cycles remaining active, India Steel Scrap HS Code 7204 Import 2025 May trends may sustain, though policy stability will be key for outlook.

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

Product Specialization and Concentration

According to yTrade data, the India Steel Scrap HS Code 7204 Import in 2025 May is dominated by non-specified ferrous waste and scrap (HS 72044900), which holds a 66.98% value share and 85.28% weight share at a unit price of 1.22 USD per kilogram. This low price point highlights its role as a bulk commodity. An anomaly exists with remelting scrap ingots (HS 72045000) showing an undefined unit price, which is excluded from further analysis.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes fall into two main groups: lower-grade bulk scraps like cast iron waste (0.95 USD/kg) and higher-grade specialized scraps such as stainless steel waste (3.97 USD/kg) and alloy steel waste (3.26 USD/kg). This mix points to a market with both fungible bulk materials and differentiated products based on steel quality and form.

Strategic Implication and Pricing Power

For importers, the heavy reliance on low-grade scrap limits pricing power, tying costs to global scrap indices. Higher-grade scraps offer niche value but face cost pressures. Historical duty changes, like the 2.5% increase in 2022 [Recycling Today], may still affect overall import expenses for India Steel Scrap HS Code 7204 Import in 2025 May.

Check Detailed HS 7204 Breakdown

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

Geographic Concentration and Dominant Role

In May 2025, India's Steel Scrap HS Code 7204 import was led by MALAYSIA, which accounted for 13.90% of the total value but only 7.30% of the weight, pointing to a higher unit price of approximately 2.95 USD/kg and suggesting superior scrap quality. This disparity indicates that MALAYSIA supplies premium-grade material, making it the key source for India's needs during this period.

Partner Countries Clusters and Underlying Causes

Suppliers fall into three clusters: high-value sources like MALAYSIA and THAILAND (unit prices around 2.95-3.88 USD/kg) likely due to advanced processing; medium-value players including the UNITED STATES and SOUTH KOREA (1.2-1.6 USD/kg) offering balanced trade; and low-value providers such as the UNITED KINGDOM and MOZAMBIQUE (below 1.1 USD/kg) possibly shipping bulk, lower-grade scrap influenced by cost efficiency.

Forward Strategy and Supply Chain Implications

Buyers should diversify beyond MALAYSIA to reduce dependency and tap into high-value clusters for quality assurance. Supply chains must be optimized to handle different scrap grades, ensuring cost-effective sourcing and minimal disruption, tailored to commodity market dynamics.

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

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

Strategic Supply Chain Overview

The India Steel Scrap Import 2025 May market for HS Code 7204 is a commodity-driven trade. Price is primarily determined by scrap grade. Bulk, low-grade materials like non-specified ferrous scrap dominate by volume but offer low margins. High-grade scraps from partners like Malaysia command premium prices. This creates a dual market. Overall costs are also tied to global scrap indices and past policy shifts, like the 2.5% import duty.

The supply chain must ensure security for bulk supply while accessing quality materials. India acts as a major processing hub. Its import structure relies heavily on a core group of high-volume buyers. This concentration creates vulnerability to demand shifts or policy changes. Diversification in sourcing and buyer engagement is critical for stability.

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

• Use HS code unit price data to segment suppliers by scrap grade. This allows you to target high-value sources like Malaysia for quality needs and low-cost ones like the UK for bulk orders, optimizing your purchase cost.
• Analyze buyer frequency and value to identify and secure contracts with dominant high-volume importers. Building relationships with these key players ensures stable, predictable sales and reduces market volatility risk.
• Diversify your supplier portfolio beyond the top partner countries. Sourcing from multiple geographic clusters mitigates risk from potential trade disruptions or price spikes in any single region.
• Monitor global ferrous scrap indices and track Indian policy announcements. This proactive approach helps you anticipate cost changes and adjust pricing strategies quickly, protecting your margins.

Forward-Looking Plan: Mitigating Risk and Capturing Opportunity

Continuously track trade data for emerging high-value suppliers. Develop flexible contracts that can adapt to grade availability and price fluctuations. Strengthen relationships across all buyer clusters to balance reliance on major players. This strategy builds a resilient, profitable operation for the India Steel Scrap Import market under HS Code 7204.

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 May?

The surge in import volume (22.6% MoM) reflects post-monsoon demand for steel scrap in construction and industrial activity, with bulk-grade scrap (66.98% value share) dominating the market.

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

Malaysia leads with 13.90% of import value, followed by Thailand and the United States, which offer varying scrap grades at different price points.

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

Prices vary due to scrap quality—Malaysia supplies premium-grade scrap (2.95 USD/kg), while bulk-grade scrap from the UK and Mozambique trades below 1.1 USD/kg.

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

Importers should prioritize high-frequency, high-value buyers (67.77% of trade) for stability while diversifying into niche high-grade suppliers like Malaysia to mitigate dependency risks.

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

Suppliers of bulk scrap face price pressure, while high-grade exporters (e.g., Malaysia, Thailand) have leverage due to India’s demand for quality material.

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

Steel scrap is primarily used for steel recycling in construction and manufacturing, with bulk-grade scrap feeding large-scale production and high-grade scraps serving specialized applications.