India has emerged as the world’s second largest scrap importer.Turkey is still the world’s largest recycler and scrap importer of the world.
According to the data,the scrap imports have increased by 35% in the first half of this year to 3.87 million tonnes.
The imports have increased due to slowdown in the domestic steel industry and cheap price of imported scrap metals.
However,India’s Internal scrap market holds huge potential as India will have 22 million obsolete vehicles by 2025 from 8.7 million at present.
Experts have said that incentivisation for scrapping old vehicles can be one of the solutions.They suggested that government could waive off registration charges of a new car provided the buyer produces a certificate proving scrapping of his old car.
Government has also recently published its draft steel scrap policy that aims to promote scrap processing to supply the scrap towards electric arc furnace and induction furnace-based steelmaking.
Union road ministry has also come out with a vehicle scrapping policy, which has proposed a mandatory cap of 20 years on the life of all commercial vehicles starting in 2020.However,it has been delayed as it is going through a consultative process with the state governments.