The ferrous scrap generation in India is likely to grow by 50% in 2020 against FY15, according to a report by JPC (Joint Plant Committee). Currently, the nation generates about 25-26 MnT scrap, it is expected that the numbers will increase to approx. 40 MnT in FY21.
As per JPC, the demand for ferrous scrap will increase by 54% in FY 21. The demand for ferrous scrap was registered to be around 31 MnT during FY 16, about29 MnT during FY15, and about 27 MnT during FY14. It is expected that the demand will increase to around 44 MnT in FY21.
The domestic consumption of Ferrous Scrap increased by around 23% in FY 2013-2014 against 22.70 MnT in FY10. The nation consumed around 28 MnT in FY14 (Excluding Scrap generated from Re-rollers and stainless steel industry).
- Generation of Home scrap was about 9 MnT in FY15, is expected to increase by 45% in FY21.
- Generation of new scrap is expected to increase by 60% in FY21 against 8.50in FY15.
- Generation of Old scrap will reach to 12.50 MnT as per JPC, which is 46% more than the quantity generated in FY15.
As per JPC, the generation of old scrap; which includes scrap from Automobiles, Demolished building materials, Old machineries and other obsolete materials; is likely to increase by 47% in FY21. The nation generated around 8.5 MnT of old scrap during FY15.
Home Scrap generated from ISPs will reach 6 MnT in FY21, an increase of 42% is expected in FY21 against 4.25 MnT in in FY15.
Home Scrap generated from Iron and Steel foundries is expected to grow by 41% by reaching 5 MnT in FY21. During FY15, the nation generated 3.5 MnT scrap from Iron and Steel Foundries.
A growth of 98% is expected innew scrap generation from Steel Forging Industry during FY21. It is likely to touch around 3.2 MnT in FY21 against 1.60 MnT in FY15
Indian government is pro actively working on vehicle scrappage policy. In the first phase, around 15 lakh heavy vehicles are expected to come for recycling, which can generate about 1.5-2 million tonnes of steel scrap.
Recently, Steel Minister gave green signal to set up India’s first Auto Shredding Plant, a joint venture between Government of India owned MSTC Limited and Mahindra Inter trade Limited. Indian government is hopeful that dependence on imports can be reduced by encouraging domestic generation.
`India imports about 6 MnT of Scrap from overseas, which are valued to be around $1.8 Bn. With the projection made by JPC, it can be expected that Import of Scrap might come down to 5% of the total scrap consumption. Increase in the domestic generation might be able to fulfill the 95-96% of Scrap demand.