Restrictions that the European Union plans to impose on scrap metal shipments complicate India's efforts to grow its steel sector. Scrap metal is preferred by countries that aim to reduce environmental impacts by using it instead of polluting raw materials used in the steel production process. India imports scrap metal as it does not have sufficient scrap metal resources due to a relatively small consumer base. The country aims to double its steel production capacity to 300 million tons within ten years.
Steel producers in India are closely following the waste shipment rules that have developed after the restrictions imposed by the European Union on scrap metal shipments, as well as China's restriction of scrap metal exports. "Every country will tend to preserve its own scrap metal because of the circular economy," Sanjay Mehta, President of the Materials Recycling Association of India, said in an interview.
The decrease in scrap metal imports affects the supply of raw materials used in steel production. India plans to increase its own scrap metal production by investing more in scrap metal resources, thereby expanding its steel production capacity in line with its goals.