Towards a Sustainable Future: India’s Booming Metal Recycling Industry!

India’s metal recycling industry is growing fast, as the world looks for cleaner and greener ways to make steel. According to India’s National Steel Policy (NSP), the country will need 70 million metric tonnes of scrap metal by 2030, more than double the current amount of 30 million tonnes.

But there are still some big challenges. Poor quality of scrap, weak collection systems, and outdated recycling technology make it hard for India to meet its sustainability goals. As the world sets stricter environmental rules, can India catch up?

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Why Green Steel Is Important

Europe is pushing for greener industries with rules like the Carbon Border Adjustment Mechanism (CBAM). If Indian steelmakers don’t reduce their carbon emissions, they could face a $80/tonne tax when exporting to Europe, which is India’s largest steel export market.

To avoid this, Indian companies are now working on low-carbon steelmaking:

• JSW Steel is testing hydrogen-based technology that can reduce emissions by up to 97%.
  
  
• Tata Steel is building a large electric arc furnace (EAF) in Ludhiana. It plans to increase its capacity from 21.6 million tonnes to up to 40 million tonnes.
  
  

According to the NSP, India aims to produce 300 million tonnes of steel by 2030, with 35-40% of it coming from EAFs and Induction Furnaces (IFs), which mainly use recycled steel. That’s around 120 million tonnes of green steel each year.

Scrap metal is also used in other steelmaking processes like Basic Oxygen Furnaces (BOFs), making production more efficient and cheaper. But to grow, the industry needs a steady supply of high-quality scrap at reasonable prices.

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More Use of Recycled Material

The government wants more recycled steel to be used in production:

• Currently, 15% of steel uses recycled materials.
  
  
• The goal is 25% by 2030, and 50% by 2047.
  
  

India doesn’t produce enough scrap locally, so it imports recycled steel. In 2024, India imported 9.49 million tonnes, down from 11.75 million tonnes in 2023, as per customs data.

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What’s Holding India Back?

Even though the industry is growing, there are still many issues:

• The scrap is often dirty or low-quality, which makes recycling difficult.
  
  
• India’s collection systems are weak, and many materials go uncollected or unsorted.
  
  
• There is a lack of proper infrastructure for sorting and processing scrap.
  
  
• Much of the recycling is done by the informal sector, with poor enforcement of rules.
  
  
• Prices of metals often fluctuate, making planning difficult.
  
  

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Steel Demand Is Rising

India’s steel demand is growing fast. It is expected to increase by 9-10% in FY2025. In the April–June 2024 quarter alone, demand grew 15%.

To meet this need, steelmakers are rapidly increasing capacity:

• From FY2021 to FY2024, India added 26.3 million tonnes of new steel capacity.
  
  
• Another 27.5 million tonnes will be added between FY2025 and FY2027.
  
  
• In 2024, India produced 149.6 million tonnes, up 6.3% from the previous year.
  
  

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EV Growth Boosts Recycling

The rise of electric vehicles (EVs) is also helping the recycling sector. EVs need a lot of steel, aluminum, and copper for batteries and motors.

By 2024, India had more than 5.6 million EVs, with 2 million sold in just that year, up from 1.6 million in 2023.

Government programs like FAME are pushing EV use, which increases the need for recycled metals. Using recycled metals saves energy and reduces the need for mining.

Companies are responding:

• Nupur Recyclers is expanding into metal and battery recycling.
  
  
• Mitsui & Co has invested in MTC Business, which is recycling old vehicles and batteries.
  
  

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The Road Ahead

India’s metal recycling sector is on the rise, thanks to:

• Strong local demand
  
  
• Supportive government policies
  
  
• A push for sustainability
  
  

But to reach its full potential, investment in technology, better collection systems, and cleaner scrap supply is essential.

With its large steel production target and focus on recycled materials, India is preparing to become a global leader in green steel and metal recycling.

Source: National Steel Policy 2017 (NSP)

The article was first published in the Recycling Today, Spring 2025 Scrap Recycling issue.