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Raw materials

Import steel scrap

Nil basic duty until 31 Mar 2028, 18% IGST, pre-shipment inspection certificate. About US$ 4.6 billion imported in FY 2025-26.

Free, with conditionsHS 7204
Basic customs duty
Nil
Nil
Social welfare surcharge
Nil
IGST
18%
18%
India’s imports, 2025-26
US$ 4.56 bn
from 152 countries

The tariff rate for 7204 is 5%. S. No. 205 of notification 45/2025-Customs exempts all goods of 7204 from basic duty; the Budget 2026 amendment (2/2026-Customs) extended this to 31 Mar 2028. With nil BCD there is no SWS. IGST on ferrous waste and scrap is 18% (Schedule II, notification 9/2025-Integrated Tax (Rate)). Check the current rate on ICEGATE. Notification 2/2026-Customs (Budget amendments to 45/2025-Customs), 1 Feb 2026 ↗

What is imported

Induction furnaces and electric arc furnaces melt imported scrap to make steel; stainless steel makers import stainless scrap. Imports under 7204 were about US$ 4.6 billion in FY 2025-26, down from US$ 5.1 billion (TradeStat). Supply is spread out: the USA (13%), the UK, the UAE, Singapore, Brazil and Malaysia.

Import policy · Free, with conditions

Free, subject to the metal-scrap conditions of the Foreign Trade Policy: a pre-shipment inspection certificate, and clearance of unshredded scrap only at notified ports. The Hazardous and Other Wastes Rules, 2016 also apply.

Licences and registrations you need

  • DGFT (pre-shipment inspection agencies)Pre-shipment inspection certificate for metal scrap from an inspection agency recognised by DGFT, stating the scrap is free of arms, explosives and radioactive material.dgft.gov.in ↗
  • CPCB / State Pollution Control BoardCompliance with the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016, including the import documents they list and your unit’s consent to operate.cpcb.nic.in ↗

What is checked at the port

  • Pre-shipment inspection certificate stating the scrap is free of arms, explosives and radioactive material; radiation portal checks at the port.
  • Port check that unshredded scrap is cleared only at a notified port.
  • Examination for closed containers, used cylinders and non-ferrous or non-metal contamination.

Practical tips

  • Buy by recognised grade (HMS 1&2 80:20, shredded 211, stainless 304) with a weight tolerance and a contamination limit.
  • Bulk vessels suit large mills; containers suit smaller furnaces starting out.

Where new importers go wrong

  • Unshredded scrap landed at a port not notified for it — it cannot be cleared there.
  • A sealed cylinder or shell found in the scrap — the whole lot can be held and investigated.
Sources (8)
  1. CBIC — Notification 45/2025-Customs (effective duty rates), 24 Oct 2025, as amended
  2. Notification 2/2026-Customs (Budget amendments to 45/2025-Customs), 1 Feb 2026
  3. CBIC — Customs Tariff of India (as on 30.06.2025)
  4. CBIC — Notification 9/2025-Integrated Tax (Rate), 17 Sep 2025 (IGST rates from 22 Sep 2025)
  5. DGFT — ITC(HS) import policy (Schedule 1)
  6. Central Pollution Control Board — Hazardous and Other Wastes Rules, 2016
  7. Commerce Ministry TradeStat — commodity-wise imports by country (FY 2025-26)
  8. ICEGATE — Customs duty and tariff look-up

Import data

Where India buys steel scrap

India’s imports from the Department of Commerce’s TradeStat, country by country. US$, financial years.

Imports, 2025-26
US$ 4.56 bn
Change from 2024-25
-10.9%
Supplying countries
152
Biggest supplier
United States of America
13%
United States of America: US$ 609 mnUnited Kingdom: US$ 353 mnUnited Arab Emirates: US$ 307 mnSingapore: US$ 275 mnBrazil: US$ 210 mnMalaysia: US$ 203 mnBahrain: US$ 177 mnAustralia: US$ 156 mnNetherlands: US$ 141 mnCanada: US$ 132 mnThailand: US$ 116 mnSouth Korea: US$ 115 mnSaudi Arabia: US$ 109 mnJapan: US$ 102 mnSouth Africa: US$ 81.3 mnUnited States of America: US$ 609 mnUnited States of AmericaUnited Kingdom: US$ 353 mnUnited KingdomUnited Arab Emirates: US$ 307 mnUnited Arab EmiratesSingapore: US$ 275 mnSingaporeBrazil: US$ 210 mnBrazilMalaysia: US$ 203 mnBahrain: US$ 177 mnAustralia: US$ 156 mnAustraliaNetherlands: US$ 141 mnCanada: US$ 132 mnThailand: US$ 116 mnSouth Korea: US$ 115 mnSaudi Arabia: US$ 109 mnJapan: US$ 102 mnSouth Africa: US$ 81.3 mnIndia
Where India imports steel scrap from — among our 80 countries, 2025-26
2020-21: US$ 2.88 bn2.9k2020-212021-22: US$ 4.34 bn4.3k2021-222022-23: US$ 6.71 bn6.7k2022-232023-24: US$ 6.31 bn6.3k2023-242024-25: US$ 5.12 bn5.1k2024-252025-26: US$ 4.56 bn4.6k2025-26
India’s steel scrap imports · US$ million

Biggest supplying countries

Name2025-26Change
1United States of AmericaUS$ 609 mn-20.7%
2United KingdomUS$ 353 mn-13.3%
3United Arab EmiratesUS$ 307 mn-8%
4SingaporeUS$ 275 mn-12.9%
5BrazilUS$ 210 mn+7.8%
6MalaysiaUS$ 203 mn-34.7%
7BahrainUS$ 177 mn-2.2%
8AustraliaUS$ 156 mn-31.3%
9NetherlandsUS$ 141 mn+55.5%
10CanadaUS$ 132 mn-15.2%
11ThailandUS$ 116 mn+28.1%
12South KoreaUS$ 115 mn-19.6%

Which sources are growing and shrinking

Growing sources

  1. NetherlandsUS$ 90.7 mn → US$ 141 mn+55.5%
  2. TürkiyeUS$ 47.8 mn → US$ 71 mn+48.6%
  3. Saudi ArabiaUS$ 79.8 mn → US$ 109 mn+36.4%
  4. JapanUS$ 77.3 mn → US$ 102 mn+32.4%
  5. ThailandUS$ 90.9 mn → US$ 116 mn+28.1%
  6. MozambiqueUS$ 57.8 mn → US$ 70.4 mn+21.8%

Shrinking sources

  1. YemenUS$ 62.1 mn → US$ 16.9 mn-72.7%
  2. PolandUS$ 119 mn → US$ 60.7 mn-49.1%
  3. MalaysiaUS$ 311 mn → US$ 203 mn-34.7%
  4. AustraliaUS$ 227 mn → US$ 156 mn-31.3%
  5. BelgiumUS$ 71.7 mn → US$ 53.5 mn-25.3%
  6. South AfricaUS$ 106 mn → US$ 81.3 mn-22.9%

Which forms come in, and at what price

Imports by 8-digit tariff line, 2025-26. Average price = total value ÷ total quantity.

Tariff lineValue 2025-26ChangeQuantityAverage price
Ferrous waste and scrap in heading no. 7204 — other waste and scrap7204 49 00US$ 2.41 bn-21.3%6.36 mn tonnesUS$ 0.38 per kg
Other wst and scrp of stainless steel7204 21 90US$ 1.89 bn+6.1%1.56 mn tonnesUS$ 1.21 per kg
Others-of-waste and scrap of other alloy steel7204 29 90US$ 125 mn+13.6%1,92,771 tonnesUS$ 0.65 per kg
Turngs,shvngs,chps,milng wst,swdst,filngs trmmngs and stmpngs,whether or not i...7204 41 00US$ 61.2 mn-9%1,68,747 tonnesUS$ 0.36 per kg
Waste and scrap of cast iron7204 10 00US$ 58.2 mn-34.2%1,47,591 tonnesUS$ 0.39 per kg
Waste and scrap of high speed steel7204 29 20US$ 9.3 mn+27.7%3,945 tonnesUS$ 2.36 per kg
Ferrous products, remelting scrap ingots — remelting scrap ingots7204 50 00US$ 3.9 mn—714 tonnesUS$ 5.48 per kg
Waste and scrap of tinned iron or steel7204 30 00US$ 2.6 mn+205.8%8,667 tonnesUS$ 0.30 per kg

Source: TradeStat — Export Import Data Bank, Department of Commerce · Figures taken 29 October 2026.

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