Despite the decline in imports, total ferrous scrap consumption in India actually rose 17 percent to a record 41 million tonnes in FY 2025-26 from 35 million tonnes in FY 2024-25. This comes as domestic scrap production jumped 22 percent year-on-year to 32 million tonnes, reducing the country's dependence on imported material.
Import Scenario by Grade and Region
Among all import grades, heavy smelter scrap (HMS) recorded the sharpest decline in absolute volumes. Meanwhile, MS Shredded posted the sharpest percentage decline at 35 percent as the price premium for shredded varieties became increasingly difficult to justify amid margin pressure.
Western India remained the largest importing region despite an 18 percent year-on-year decline to 2.8 million tonnes, while north India saw the sharpest decline at 27 percent to 1.77 million tonnes. Imports into southern India fell 15 percent to 1.63 million tonnes, while eastern India recorded only a marginal decline of six percent to 630,000 tonnes, indicating relatively resilient buying activity compared to other regions.
Why did imports fall?
The sharp decline in India's ferrous scrap imports during FY2026 was mainly due to better availability and competitive prices for domestic scrap and alternative metals. At the same time, uncertain global market conditions and volatile import prices forced buyers to exercise caution, which led to a weakening of interest in imported goods.
