India Steel Scrap Import Market -- HS 7204 Trade Data & Price Trend (Q1 2025)

India Steel Scrap Import (HS 7204) Key Takeaways

India's Steel Scrap imports under HS Code 7204 in Q1 2025 reveal a market dominated by bulk, low-grade ferrous scrap (68.9% value share), with volatile trade values surging to $880.34 million in March after a mid-quarter dip. The market is highly concentrated, with top suppliers controlling 67.37% of import value, while the U.S. leads as a key origin for high-grade scrap (13.07% value share). This analysis is based on cleanly processed Customs data from the yTrade database for Q1 2025.

India 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 these materials. This category is critical for steelmakers and foundries, as recycled scrap is a cost-effective raw material for producing new steel. Global demand remains stable due to its role in sustainable manufacturing and reducing reliance on virgin iron ore.

Current Context and Strategic Position

In February 2022, India reinstated a 2.5% customs duty on steel scrap imports (HS Code 7204), reversing a previous 0% rate, as part of the Finance Bill 2022 [Global Trade Alert]. This policy shift reflects India’s balancing act between supporting domestic steel production and managing input costs for manufacturers. India’s steel scrap import market is strategically significant, with key suppliers including the U.S., Mexico, and Vietnam. Monitoring HS Code 7204 trade data is essential for stakeholders navigating duty impacts and supply chain dynamics in Q1 2025.

India Steel Scrap Import (HS 7204) Price Trend

Key Observations

India's Steel Scrap imports under HS code 7204 experienced notable volatility in Q1 2025, with total values swinging from $797.24 million in January to $553.31 million in February, before surging to $880.34 million in March. This quarter-high in March underscores a resilient recovery despite mid-quarter weakness.

Price and Volume Dynamics

The India Steel Scrap Import trend displayed a clear V-shaped pattern in Q1, with February's sharp drop likely reflecting temporary market disruptions or inventory drawdowns, followed by a robust rebound in March that suggests renewed buying interest or supply chain adjustments. This sequential improvement aligns with typical post-winter activity in steel production, where mills often ramp up scrap intake to meet rising construction and manufacturing demand as seasons change.

External Context and Outlook

The hs code 7204 value trend's volatility can be partly attributed to India's consistent 2.5% import duty on ferrous scrap, which has been in place since 2022 as confirmed by [Recycling Today], maintaining cost pressures that may incentivize timing shifts in procurement. With no policy changes reported for 2025, importers are likely navigating global price fluctuations and currency effects, pointing to continued cautious optimism in the near term.

India Steel Scrap Import (HS 7204) HS Code Breakdown

Product Specialization and Concentration

According to yTrade data for Q1 2025, India's import of HS Code 7204 is heavily concentrated in bulk, low-grade ferrous scrap, with the sub-code 72044900 ("Ferrous waste and scrap; n.e.c. in heading no. 7204") dominating at a 68.9% value share and 87.8% weight share. Its low unit price of 2.65 USD per kilogram confirms its role as a high-volume, commoditized product, while higher-priced items like stainless steel scrap at 10.31 USD per kilogram show niche specialization. Anomalies with negligible volume and unavailable pricing, such as tinned iron scrap, are isolated from the main analysis due to their insignificant market impact.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes fall into two clear groups: bulk general scrap (e.g., 72044900 and cast iron scrap at 2.02 USD per kilogram) and higher-grade specialized scrap (e.g., stainless steel at 10.31 USD per kilogram and alloy steel turnings at 10.33 USD per kilogram). This structure indicates a trade in largely fungible bulk commodities, where pricing for the dominant low-grade segment is likely tied to global scrap indices, while the smaller high-grade segments command premiums due to specific alloy content or form.

Strategic Implication and Pricing Power

For importers, the bulk dominance under HS Code 7204 means limited pricing power, with costs driven by global supply and demand fluctuations. The specialized higher-grade scraps offer better margins but require targeted sourcing. Additionally, the 2.5% import duty on HS Code 7204, as noted in [Recycling Today], adds a fixed cost layer, urging importers to optimize logistics and supplier negotiations to maintain competitiveness in India's scrap metal market.

Check Detailed HS Code 7204 Breakdown

India Steel Scrap Import (HS 7204) Origin Countries

Geographic Concentration and Dominant Role

The United States is the dominant origin for India's Steel Scrap imports in Q1 2025, holding a 13.07% value share. The value share exceeds the weight share (8.72%), indicating a focus on higher-grade or premium scrap varieties. The frequency share is notably high at 19.69%, suggesting frequent, small-lot shipments that support just-in-time supply chains for recycling operations.

Origin Countries Clusters and Underlying Causes

Origin countries form three clusters based on trade profiles. The High-Yield Cluster includes Chile, Kuwait, and South Korea, where value shares significantly outweigh weight shares (e.g., Chile value 6.70% vs. weight 1.44%), pointing to sources of specialized, high-value scrap. The Volume/Hub Cluster comprises the UAE, Singapore, and the UK, with weight shares dominating value (e.g., UAE weight 16.98% vs. value 5.64%), reflecting roles as bulk trade hubs for lower-grade scrap. The Transactional Cluster is led by the US, with its outlier high frequency share, driven by efficient logistics and consistent demand for varied scrap grades.

Forward Strategy and Supply Chain Implications

India's heavy reliance on the US for high-value scrap and on the UAE and Singapore for bulk volumes calls for diversification to enhance supply chain stability. The import duty of 2.5% on HS Code 7204, as reported by [Recycling Today] and (Global Trade Alert), remains unchanged in 2025, suggesting stable cost conditions but underscoring the need for multi-sourcing to mitigate potential disruptions or price volatility in Steel Scrap shipments.

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

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India Steel Scrap (HS 7204) Suppliers Analysis

Supplier Concentration and Dominance

In Q1 2025, the India Steel Scrap import market is heavily concentrated, with a small set of suppliers driving most of the trade. According to yTrade data, the top group handles 67.37% of the import value and 58.96% of shipment frequency, indicating that typical trades involve large, regular shipments from key partners. This dominance means that India's Steel Scrap import suppliers rely on a few high-volume players for the bulk of their needs.

Strategic Supplier Clusters and Trade Role

The remaining supplier clusters show varied roles, but the dominant group's companies, like VE STAAL DMCC and MULTI TRADE LINKS UK LTD, are trading firms, pointing to an agent-driven market. The profile of HS code 7204 suppliers suggests that intermediaries manage most transactions, which is common for commodity products like steel scrap. Other clusters include occasional high-value deals and smaller, frequent trades, but the market structure is shaped by these trading entities.

Sourcing Strategy and Vulnerability

For importers in India, the strategy should prioritize securing supply from high-frequency traders to maintain consistency, while diversifying into other clusters to reduce dependency risks. The import duty on steel scrap remains at 2.5%, as confirmed by [Recycling Today], adding cost pressures that require efficient sourcing. This setup highlights vulnerability to disruptions from key traders, urging a balanced approach to supplier relationships. (Recycling Today)

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

Check Full Steel Scrap Supplier lists

Action Plan for Steel Scrap Market Operation and Expansion

Strategic Supply Chain Overview

The India Steel Scrap Import market is a commodity trade dominated by bulk, low-grade material. The core price drivers are global scrap indices for the high-volume segment and alloy content for niche, high-grade varieties. The fixed 2.5% import duty adds a consistent cost layer. This hs code 7204 trade data reveals heavy reliance on a few large trading firms and key geographies like the US for high-value scrap and the UAE for bulk volumes. The resulting Steel Scrap supply chain implication is high vulnerability to disruptions from these concentrated sources. India's role is as a volume processor, with limited pricing power in the bulk segment.

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

• Use hs code 7204 trade data to identify and contract with high-frequency suppliers like VE STAAL DMCC. This secures consistent bulk supply and stabilizes your raw material pipeline for production planning.
• Diversify sourcing into high-yield origin countries like Chile and South Korea using trade statistics. This reduces over-reliance on US shipments and improves access to premium-grade scrap for better margins.
• Analyze shipment frequency data from key hubs like the UAE to optimize inventory levels. This prevents overstocking of bulk scrap and minimizes storage costs in your Steel Scrap supply chain.
• Monitor global scrap price indices and correlate them with your import data for low-grade purchases. This enables strategic timing of bulk orders to capitalize on price dips and control input costs.
• Build relationships with suppliers in the transactional cluster to access smaller, varied scrap lots. This provides flexibility to meet sudden demand for specific grades without large commitments.

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 Q1?

India's Steel Scrap imports saw a V-shaped recovery in Q1 2025, dropping sharply in February ($553.31M) before rebounding to $880.34M in March. This volatility reflects post-winter demand surges and global price fluctuations, compounded by India's fixed 2.5% import duty on bulk low-grade scrap (68.9% share under HS 72044900).

Q2. Who are the main origin countries of India Steel Scrap (HS Code 7204) 2025 Q1?

The US dominated with a 13.07% value share, followed by the UAE (5.64%) and Chile (6.70%). The US also led in shipment frequency (19.69%), indicating frequent, smaller high-grade scrap deliveries, while the UAE supplied bulk volumes (16.98% weight share).

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

Prices vary due to grade specialization: bulk low-grade scrap (e.g., 72044900 at 2.65 USD/kg) dominates from hubs like the UAE, while high-value origins like Chile and South Korea ship premium scraps (e.g., alloy steel turnings at 10.33 USD/kg).

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

Prioritize high-frequency traders (67.37% value share) like VE STAAL DMCC for consistency, but diversify into niche suppliers of high-grade scrap to mitigate reliance on bulk commodity markets and global price swings.

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

Suppliers of bulk scrap (e.g., UAE, Singapore) benefit from steady demand, while high-grade specialists (e.g., US, Chile) can leverage India's need for premium varieties. Trading intermediaries dominate, emphasizing agent-driven transactions.

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

India imports bulk low-grade scrap (87.8% weight share) for mass steel recycling, while specialized grades (e.g., stainless steel) likely serve niche manufacturing or alloy production needs.

Detailed Monthly Report

India HS7204 Import Snapshot 2025 JAN

India HS7204 Import Snapshot 2025 FEB

India HS7204 Import Snapshot 2025 MAR