It might be more difficult for India to expand its steel industry if the European Union places restrictions on the export of scrap metal in an effort to cut industrial emissions.

In order to minimize the use of polluting feedstocks like iron ore in the steel-making process, countries are recycling more scrap domestically. India needs imports in order to meet its goal of doubling its steel production capacity to 300 million tons by the end of the decade. India is scrap deficient as a result of its small consumer base.

Producers keep an eye on changes in policy, such as the EU's recent update to its waste shipment regulations in response to China's tightening of scrap metal export restrictions. According to the bloc's proposal, waste should only be transferred to nations outside of the Organization for Economic Cooperation and Development if those nations are able to fulfill stringent environmental requirements.

"Due to the implementation of a circular economy at home, every country is going to protect its scrap," Material Recycling Association of India president Sanjay Mehta stated in a Mumbai interview. "We're going to be in a very difficult situation," he said, because India's supplies will probably be restricted as a result of the EU's new rules.

According to the industry group, India is the second-largest market for European scrap after Turkey. It purchases the remaining scrap from the US, Central and South America, Asia, and the Middle East. By the end of the decade, the nation's consumption of ferrous scrap metal is expected to increase by 50% to 60 million tons, while imports are expected to double to roughly 20 million tons.

Based on data from the trade ministry, the country in South Asia imported metal scrap valued at approximately $12 billion in 2022—more than twice as much as it did just five years prior. Steel scrap, which is used as feedstock in induction and electric arc furnaces, made up nearly half of the incoming cargo.

Metco Ventures LLP partner Dhawal Shah stated that the US, Europe, and the Middle East want to ensure that these productive raw materials do not disappear too quickly. "In order to secure sufficient supplies, India will need to exert greater effort," he continued.

Following the implementation of the EU's cross-border carbon tax, Mehta stated that Indian producers such as Tata Steel Ltd., JSW Steel Ltd., and ArcelorMittal Nippon Steel Ltd. are expected to utilize more scrap in order to continue trading with the EU. In 2021, Tata Steel opened its first steel recycling facility in northern India.

Because there are currently few used cars being disposed of, India's recycling infrastructure is limited, and it will continue to depend on imports to meet its rising demand, according to Mehta.

The Indian government implemented a scrapping policy in 2021 in an effort to promote recycling and get outdated, environmentally harmful cars off the road, but little has changed in terms of adoption.

Shah stated, "India has begun recycling end-of-life vehicles today; tomorrow, it could be refrigerators, air conditioners, and white goods." "I believe that as society develops and the amount of scrap produced domestically increases, the import dependency ratio will naturally decline."

India remained a net importer of steel in October, with imports totaling 0.57 million metric tons (mt) against exports of 0.29 mt. Even as cheaper offers from China entered the country, numbers were impacted by a lack of export offers from Vietnam, West Asia, and Europe.

According to a Steel Ministry report that Businessline was able to access, imports were more than exports by almost 0.28 million tons.

As per the report, the month's imports fell by 4% YoY (from 0.6 mt in October 2022), while exports declined by 21% (from 0.36 mt). However, imports increased by 50% month over month from 0.38 mt in September, a sign that lower-priced Chinese and Vietnamese goods are eroding the market share of domestic steel producers, according to trade sources. Despite September's exports being among the lowest in the previous five years at just 0.16 mt, export numbers improved by 78% month over month.
India continued to be a net exporter of steel for the seven-month period from April to October, with 3.52 mt going out (down 11% from 4 mt exported in 7MFY23) and 3.47 mt coming in (up 10% from 3.2 mt).
India's imports of steel have increased in H1 FY24 (April–September). India's imports are increasing, so this is still an area we need to be cautious about. During an earnings call, Jayant Acharya, Joint MD and CEO of JSW Steel, stated that exports also decreased during this time. Due to "global headwinds," the company's export share for the July–September quarter was rebalanced to 11%.

Mix by category
Exports of non-alloyed steel increased by 277 percent year over year to 0.24 million metric tons during the reviewed month. Trade sources reported that an export duty had reduced offers in October of last year. However, imports into the category increased to 0.47 mt, a 28% increase. Offers for stainless and alloyed steel decreased by 86% and 53%, respectively, in both the import and export markets.

Non-alloyed steel shipments into the nation increased by 80% month over month, indicating the growing discrepancies in price between Chinese and domestic products. Exports increased by 75% after a recovery. Within the stainless and alloy steel industry, exports increased by 102% while imports decreased by 13%.

When discussing the price difference, Acharya emphasized that certain nations were making an effort to "offload excess stock" and stated: "If somebody were to convert with the current raw material, then the prices at which some of those imports of the lower price have come in are not sustainable."  
He believes that prices internationally have probably peaked. The price of steel has "bottomed out" globally, and he predicted that going forward, steel prices would rise in response to rising raw material costs, particularly those of coal.
 

India's economy is largely dependent on the steel industry, which propels expansion and development in a number of areas. Hot rolled coils are an essential industry component that play a major role in infrastructure development, automotive manufacturing, construction, and many other areas. India's hot rolled coil prices serve as both a gauge for the state of the economy and for the industry. JSW Steel is a noteworthy player in this industry due to its extensive influence on hot rolled coil prices in India as well as its wider ramifications.

India's Hot Rolled Coil Price
The raw material for many downstream steel products is hot-rolled coils. Steel slabs are heated and then rolled into the required thickness and shape to create these coils. The cost of raw materials, government regulations, demand and supply dynamics, and worldwide steel prices are just a few of the numerous variables that affect the price of hot rolled coils in India.

The Impact of JSW Steel
Hot rolled coil prices in India are greatly influenced by JSW Steel, a major force in the Indian steel sector. The company has positioned itself as a leading manufacturer of these coils through strategic positioning and ongoing technological and market adaptation. Because of its flexibility, JSW Steel can influence price trends and maintain its competitiveness.

First Off
Steel is a vital element in modern infrastructure and manufacturing, playing a fundamental role in many aspects of our daily lives, ranging from the buildings we live in to the cars we drive. Nevertheless, concerns regarding sustainability and environmental consequences have arisen due to the growing demand for steel and the depletion of natural resources. As a result, the circular economy framework has become more popular, emphasizing the importance of resource efficiency and reuse. This essay explores the significance of recycling steel in the context of the circular economy, highlighting its benefits and looking into how it might help create a more sustainable future.

Knowledge of the Circular Economy

The idea of the circular economy represents a shift away from the traditional "take-make-dispose" linear economic model and toward a more environmentally friendly strategy. Its main goal is to promote techniques like recycling, remanufacturing, reuse, and repair in order to reduce waste production and maximize resource value. In essence, it aims to finish the material cycle, ensuring that resources are used for the longest amount of time.
Steel Recycling: A Crucial Elements
Steel is a highly recyclable material that is in complete harmony with the circular economy's tenets. Because of its inherent strength, magnetic properties, and adaptability, it is a great candidate for recycling. Furthermore, recycling steel saves a significant amount of energy, which makes it a more environmentally friendly option than producing steel from scratch. We can greatly lessen the environmental impact of steel production and consumption by incorporating steel recycling into the circular economy framework.

The Steel Recycling Process

Steel recycling is a methodical process that starts with gathering scrap steel from different sources, such as construction materials, manufacturing waste, and end-of-life products. Following collection, the scrap is sorted and divided according to its purity and composition. The sorted scrap is then refined to remove impurities and melted in a furnace to produce high-quality recycled steel. In the circular economy, this recycled steel is then used to create new goods, closing the circle.
 

The demand for steel in India is expected to register a 'healthy growth' of 8.6 per cent against the overall global rise of 1.8 per cent in 2023, worldsteel said on Tuesday. It forecasts that global steel demand will grow 1.8 per cent in 2023 and reach 1,814.5 MT after having contracted by 3.3 per cent in 2022. In 2024, the demand will see an increase of 1.9 per cent to 1,849.1 MT, the World Steel Association (worldsteel) said. For India, the global body said, "after a growth of 9.3 per cent in 2022, steel demand is expected to show healthy growth of 8.6 per cent in 2023 and 7.7 per cent in 2024." The Indian economy remains stable against the pressure of high interest rate environment, and the steel demand is expected to continue its high growth momentum. Growth in India's construction sector is driven by government spending on infrastructure and recovery in private investment. Infrastructure investment will also support the capital goods sector growth, worldsteel said in its Short Range Outlook (SRO). Healthy growth momentum will continue in automotive. The consumer durables sector is the only sector that is underperforming due to higher inflation/interest rates that constrain discretionary spending. However, it will improve in 2024 with festive season spending and progress in the Production Linked Investment (PLI) schemes, it said. Mximo Vedoya, Chairman of the worldsteel Economics Committee, said, steel demand has been feeling the impact of high inflation and interest rate environment.  Since the second half of 2022, activities of steel using industries have been cooling sharply for most sectors and regions as both investment and consumption weakened. The situation continued into 2023, particularly affecting the EU and the US. Considering the delayed effect of the tightening monetary policy, the body expects steel demand recovery in 2024 to be slow in advanced economies. Emerging economies are expected to grow faster than developed ones, he said. "We expect the situation in China's property market will stabilise in the latter part of the year and its steel demand will record slight positive growth thanks to government measures. The 2024 outlook for China remains uncertain depending on the policy directions to tackle the current economic difficulties. We note that the Chinese economy is in a structural transition phase that may add volatility and uncertainty.