The PHD Chamber of Commerce and Industry, in collaboration with Metal X, organized a conclave where industry leaders highlighted the significance of treating scrap as a strategic commodity to reduce import dependence on other countries. Vijay Sharma, Chair of the Minerals & Metal Committee at PHDCCI, stressed the need for ecosystem formalization through scrap processing clusters and integrating informal collectors into formal value chains. He also emphasized the importance of technology-led digital infrastructure and structured financing linked to ESG and green finance frameworks.
Sharma pointed out that managing scrap is no longer just about risk management but a strategic, business-driven approach focused on competitiveness, sustainability, and supply chain resilience. He mentioned that recycling one ton of steel saves 1.1 tons of iron ore, 630 kg of coking coal, and reduces emissions by 28%, making scrap essential for India’s growth. Sharma identified five key challenges that need to be addressed for improving scale, including fragmentation and informality, quality and standardization, price volatility, technology and capital gaps, and a trust deficit.
Alok Sahay, Secretary General and Executive Head of the Indian Steel Association, highlighted that scrap provides a practical short-term solution for decarbonization, especially with India’s carbon intensity at 2.55 tonnes of CO₂ per tonne of steel. He emphasized that scrap offers a way for progressive cost reduction, emphasizing the economic necessity for India to continue investing in blast furnace production to align with the country’s growth objectives. Sahay discussed the global steel production scenario, noting that out of the 2 billion tonnes produced annually, only 600 million tonnes come from scrap, with hydrogen-based alternatives still costly and high-grade DRI iron ore limited in India.
India’s scrap-based production currently stands at 22%, significantly lower than the US’s 70%. Sahay raised concerns about India’s increasing risk due to the 8 million tonne scrap import dependency, especially as OECD countries contemplate export restrictions. He stressed the urgency for domestic scrap development to secure the supply chain.
