Learn how this shift changes scrap prices, green steel, and what it means for scrap traders.

India is already the fourth biggest producer of iron ore in the world, mining about 275 million tonnes in 2023-24. But as the country races to hit 300 million tonnes of steel capacity by 2030, local supplies are struggling to keep up. In 2022 alone, India had to import over 16 million tonnes of iron ore to fill the gap. This shift is changing how steel is made in India and how scrap is traded.

Why India Is Importing More Iron Ore

Even though production has grown, the quality of Indian iron ore is slipping. A lot of the ore mined here has less iron content, which makes it harder and costlier to process. Moving the ore from mines to mills can also be slow because of transport bottlenecks and approvals. All this adds up to a simple truth: India cannot meet its steel goals with local iron ore alone. Mills are now looking abroad for higher-grade ore that melts faster, costs less to refine, and helps them meet tighter environmental standards.

What This Means for Scrap Prices

Imports of iron ore affect scrap in a very real way. When mills can get good quality ore from abroad at a reasonable price, they often use less scrap. That can slow down demand and keep scrap prices steady or even push them down. When local ore is short or expensive, mills switch back to scrap to make up the difference, which can lift scrap prices.

Global iron ore prices can also sway the scrap market. For example, in 2025, prices dipped below 90 USD per tonne after being over 110 USD. When that happens, imports rise, and scrap demand may soften.

Is the Self-Reliance Dream Over?

Not quite. India still has about 33 billion tonnes of iron ore reserves, which is huge by global standards. The challenge is getting that ore out of the ground at the right quality and speed. Until that improves, imports will play a bigger role.

For green steel makers, this is not all bad news. Recycled steel scrap is still crucial for electric arc furnaces and low-carbon steelmaking. For scrap traders this is an opportunity to step up. Mills want scrap that is clean, sorted, and verified. Those who can provide consistent quality will stay in demand even as imports rise.

At Scrapcart, we believe good scrap makes better steel. We work with verified sellers to ensure that the scrap you use in the smallest organisation to the largest industry is reliable, compliant, and provides the best value. As India balances local mining, imports, and sustainability goals, trusted scrap can be the steady link between all three. 

Learn how reforms can boost formal scrap trade and unlock ₹1.8 lakh crore by 2035

In India, metal scrap is taxed at 18% GST, the same as many new goods. Even with recent reforms, the scrap trade remains at this high rate. For scrap dealers, manufacturers using recycled metal, and our green economy, this matters a lot. In recent weeks, India has pushed forward GST 2.0 reforms to simplify the tax system. The idea is to reduce the number of slabs, clarify rates, improve compliance, and make life easier for businesses, including scrap dealers. Many goods in the 12% slab are proposed to move to 5% or 18% depending on category.

However, scrap has not yet been formally moved to a lower rate in the public announcements, so the scrap trade and recycling sectors remain stuck with 18% GST. This means many of the issues around informal trade and unfair cost still persist.

Problems Caused by 18% GST for Scrap

Informal Trade Remains Strong

Because many small scrap dealers can’t afford the paperwork, tax registration, or the extra cost that comes with the 18% rate, they often operate informally. Transactions are mostly cash-based and unrecorded. Under the Reverse Charge Mechanism (RCM) the buyer (a registered business) is responsible for paying GST if the seller is unregistered. Meanwhile, informal sellers avoid compliance and tax burdens, giving them unfair advantage over honest traders.

Government Revenue Loss and Market Distortion

A new report by the Centre for Science and Environment (CSE) highlights that the current GST structure causes large revenue losses due to unrecorded sales in scrap, e-waste, plastics, and other waste streams. The report estimates an annual loss of about ₹65,000 crore due to these unrecorded/informal transactions, which could rise to ₹86,700 crore by 2035 if no action is taken.

It also finds that if the current structure continues, the government is losing the chance to unlock up to ₹1.8 lakh crore in additional revenue by 2035 through reforms in GST on waste materials.

How Does This Affect Scrapcart and the Scrap Trade Overall

At Scrapcart, we push for compliance, transparency, quality, and fairness. The high 18% GST rate adds cost, risk, and complexity for everyone involved in scrap trading. Our belief is that fairer tax treatment for scrap can do many good things:

• Encourage more scrap dealers to get formal, register properly, pay taxes.
• Reduce fake invoicing, fraud, and unfair competition.
• Lower the cost of recycled metal and make green steel more viable.
• Help the government collect more revenue legitimately.

With reforms underway and public focus on simplifying GST, there is reason to hope. If GST on scrap or waste streams is rationalised (lowered or differentiated between virgin vs recycled materials), then honest scrap businesses will gain ground.

Even after GST reforms, the 18% tax on metal scrap still carries a heavy weight for dealers, recyclers, and the circular economy in India. Scrapcart remains committed to verified, compliant scrap trade. Through its stringent validation check mechanism, Scrapcart ensures only GST-compliant Buyers and Sellers are listed on the platform. But real change means the GST policy must become fairer. Scrap waste should not be taxed like brand-new raw material. If we reward recycling, support formal trade, and remove unfair tax burdens, India can grow its scrap trade, reduce waste, and power green steel.

Here’s why Scrapcart’s digital approach is seamless, transparent, efficient, and gives you the right market value. 

So far, scrap in India has been concentrated in the hands of a few players, who primarily work using offline or traditional methods. With Scrapcart, we not only aim to democratize the scrap trade process by making the market more open and accessible, but we also strive to improve efficiency, convenience, and transparency through our digital-first approach, supported by our manned operations. With our cutting-edge platform, here’s how we at Scrapcart are leveraging our digital and tech. capabilities to deliver better outcomes for you, whether you are a buyer or a seller of scrap. 

• End-to-End Digital Platform: Our cloud-based marketplace handles digital auctions, tenders, and direct sales, replacing manual scrap negotiations with real-time, transparent bidding. This innovation has resulted in more than 1,000 tonnes of scrap being sold through our platform on a monthly basis from multiple industries.

• Real-Time Price Discovery: Our system of dynamic auctions provides real-time pricing to all stakeholders, improving sellers’ planning and buyers’ sourcing. In fact, in our latest e-waste auction for our client, we managed to secure a 2.5x higher sale price, with pricing reaching INR 3.9 Lakh on Scrapcart, against INR 1.5 Lakhs achieved through traditional sales methods.

• Audit-Ready Transactions: At Scrapcart, we pride ourselves on our thoroughness with compliance and reliable transactions. Our system of complete digital documentation, escrow payments, and audit trails enables compliance with environmental and financial regulations and policies. In fact, our transactions are so secure and convenient, we have facilitated scrap transactions worth more than INR 2 Crore per month for manufacturers.

• Bidder Expansion and a Competitive Marketplace: With more than 100 Scrapcart assured buyers on our platform, we have taken huge steps to improve competition in the scrap trade and have worked to eliminate cartelization in the space.

• Data-Driven Insights: Whether you are a buyer or seller on Scrapcart, you will always have access to market intelligence based on the multiple bids on the platform, so you can understand price trends and achieve a better scrap valuation.

• Reduced Administrative Overhead: With dedicated account executives, automated bid management, and digital weighbridge calibration, we at Scrapcart significantly reduce the manual effort and administrative burden for our customers. 

To better understand how Scrapcart’s digital-first approach has worked for our customers in real-time, take a look at a miniature case study on an e-waste tender we helped close. 

Optimising an E-Waste Auction

Our client: The world’s largest zipper and fastening products manufacturer

The challenge: To help them deal with their existing low scrap value realisation, and eliminating the non-compliance risks in e-waste disposal for their company

The Scrapcart Solution:

• To counteract their low scrap value issue, we conducted an online auction of their scrap materials and e-waste, and created an avenue for real-time bidding on the goods. 
• To ensure that their waste disposal was meeting all regulatory checkpoints, we carried out a compliance certification exercise for their e-waste disposal, making documentation air-tight and in accordance with existing regulations. 
• And to ensure their scrap was getting the right value from the right buyers, we also facilitated buyer inspections of their scrap, so that buyers could make an informed decision and truly understand the value of the e-waste they were purchasing, which went a long way in delivering outcomes for the client. 

The Result:

• The highest bid secured during the real-time auction stood at INR 3.9 Lakhs (vs lowest starting at INR 1.5 Lakhs), thereby delivering 2.5x the value in real-time through the bidding process. 
• And finally, we delivered all the documentation to the client, making their scrap sale fully compliant and audit-ready. 

Whether in numbers or innovation, that’s the impact Scrapcart is making on the scrap trade in India and revolutionizing the landscape with its digital approach. Because scrap is only waste when you waste its potential.

One trade, many solutions across the scrap ecosystem in India

India’s scrap industry is vast but fragmented, with low transparency, limited access to information, and high barriers to entry. Much of the market is controlled by a few players, leaving smaller businesses at a disadvantage.

Scrapcart is transforming this landscape. We connect key stakeholders such as scrap sellers, buyers, refurbishers, etc., creating a transparent, compliant, and accessible marketplace. Scrapcart streamlines trade, ensures high standards, and unlocks the full potential of India’s scrap market.

Whether you run a large enterprise, a small workshop, or are just stepping into the scrap trade, Scrapcart has a solution designed for you.

For Scrap Sellers comprising of Large Industries, SMEs, and Local Businesses

• Scrapcart-Assured Buyers: We provide access to a wide network of verified, trustworthy buyers of scrap, ensuring better price realization. 

• Hassle-Free Process: The scrap trade is effort-intensive, even in paperwork and logistics. Scrapcart takes over your entire scrap disposal process, from bid management to documentation, therefore reducing your administrative burden and optimizing your resources. 

• Transparent Pricing: Say goodbye to the cartelization of the scrap trade with Scrapcart’s real-time auctions, tenders, and listings. Our real-time scrap trade systems will allow clear price discovery, circumventing the existing concerns of the price being governed by the will of a few. 

• Convenience and Control: Scrapcart uses a combination of manpower and tech to empower you in the scrap trade. With our dedicated account executives, pricing practices, and full visibility over the process, replace your scrap selling concerns with convenience. 

• Assured and Secure Payments: No scrap leaves the premises without pre-payment from the vendors, allowing you to have minimum guarantees in place. Scrapcart also ensures transactions are carried out using escrow accounts for that assurance of safety. 

• Compliance and Proper Disposal: At Scrapcart, we ensure we adhere to all applicable environmental norms and guidelines so we are recycling the scrap you sell responsibly. 

For Scrap Buyers comprising of Recyclers, Refurbishers, and Furnaces

• Access to Quality Scrap: For our scrap buyers, we ensure that the scrap on offer for them is sourced only from industries and SMEs to ensure reliable quality and consistent supply.

• What You See Is What You Get: Quality assessment and valuation estimates of the scrap from our verified sellers provide clarity before purchase.

• Consistent Volume and Supply: With our vast database and aggregation of multiple sellers on the platform, we ensure a steady availability of scrap for your needs. 

• Transparent and Fair Purchase: With our real-time bidding offering, combined with audit trails of all the scrap trade on our platform, Scrapcart ensures competitive pricing and fairness in the marketplace. 

• Value-Added Services: At Scrapcart, we also provide many additional services to ensure that your scrap trade is well-supported end-to-end. These include inspection support, logistics estimation, insurance options, and faster payment workflows.

For the Scrap Ecosystem at Large

There are more than a few advantages when you trade in scrap with Scrapcart. Whether you are a seller, a buyer, or someone hoping to become a stakeholder in the industry, here’s what we have to offer: 

• Aggregated Demand and Supply: Through a single digital marketplace, Scrapcart connects all stakeholders in the scrap trade market in India, beyond geographical limitations.

• Market Intelligence and Data: We use and share data-driven insights for smarter sourcing and selling decisions across the platform.

• Leakage-Proof and Compliant Trade: Using escrow-based transactions and strong, audit-ready documentation as part of our trade process, Scrapcart builds and operates with trust from the get-go. 

• Sustainability and ESG Impact: When you trade with Scrapcart, we facilitate responsible recycling, help reduce carbon emissions through efficient logistics, and support ESG-led initiatives like segregated scrapyards.

• AI-Powered Tools: Also upcoming on Scrapcart is a set of AI tools that would assist with price estimation of your scrap needs, and tracking for quality and volume of the scrap in the trade, so that you can best optimise your trade decisions.

A Growing Opportunity

When we think about scrap, we often focus on its environmental benefits or its potential to be reused. But there’s more to it than just recycling. Scrap also represents a massive and growing market, especially in India, where demand for sustainable raw materials is on the rise. Still, if you're trying to understand how the Indian scrap market works, you’ll find that information is scattered and often difficult to access. Let’s break it down.

How big is the scrap metal market in India?

As of 2023, India’s scrap recycling market was valued at a massive 11 billion dollars. That number is only expected to grow, with projected year-on-year growth of 8 to 10 percent over the next five years. India currently generates around 25 million tonnes of metal scrap annually. This includes both ferrous scrap, like steel and iron, and non-ferrous scrap such as aluminium, copper, and zinc. However, the majority of scrap produced falls under the ferrous category.

Why do we need so much scrap?

We absolutely need it. According to India’s National Steel Policy 2017, the demand for ferrous scrap alone is projected to hit 16 million metric tonnes by 2030. Scrap plays a vital role in reducing the dependency on traditional, high-emission methods of production. According to the Material Recycling Association of India, the use of steel scrap in steel manufacturing saves 75% of energy when compared to virgin iron ore used as a raw material. Recycled scrap can significantly lower costs and improve sustainability in sectors like construction, automotive, infrastructure, and manufacturing.

The challenge, however, is that India does not currently produce enough ferrous scrap domestically to meet this growing demand. As a result, the country continues to rely on imports. In 2023 alone, India imported 11.76 million metric tons of ferrous scrap. This is over double the inflows of 5.66 million mt in 2013. To bridge this gap, India needs a more efficient and streamlined scrap collection, sorting, and distribution system.

How is scrap bought and sold in India?

Right now, one of the biggest hurdles in the Indian scrap ecosystem is its heavy dependence on the informal sector. Although there are a few large-scale scrap dealers and recyclers, a significant portion of the supply chain still operates through informal channels. This includes everyone from individual ragpickers and small scrap shops to mid-sized aggregators who rely on local networks. While these players serve an important role, the lack of a centralised, digital, and regulated system makes it difficult for industries to access high-quality, sorted scrap at scale.

To truly unlock the value of the scrap metal market in India, there is a clear need for formalisation and digitalization. A centralised and tech-enabled approach could make the process more efficient, improve transparency, and offer easier access to industrial buyers, especially those looking to incorporate recycled materials into their production lines.

The Scrapcart approach

At Scrapcart, we saw this gap and decided to do something about it. We aim to bring structure to the scrap trade by building a tech-enabled, transparent, and compliant ecosystem for scrap procurement, trading, and distribution.

We believe that scrap should not be a liability or an afterthought in the manufacturing process. Instead, it should be a reliable, traceable, and cost-effective resource that adds value. By combining digital tools with ground-level operational expertise, we’re working to make scrap buying and selling easier, faster, and fully compliant with industry standards. We aim to ensure scrap buyers get a high-quality quality consistent scrap supply, scrap sellers get the optimum market rates, while the overall ecosystem gets synergy and digital transformation.  

Whether you’re a manufacturer looking for consistent quality or a supplier trying to expand your reach, our goal is to make the scrap ecosystem in India smarter and more sustainable, because waste is only waste if you waste its potential.

The terms scrap and waste are often used interchangeably to talk about materials that have been discarded, especially in the manufacture or production of any kind, and that they no longer have any use. However, there are technical differences between both scrap and waste, and being able to correctly identify which is which and put them to the right use is critical. 

Here are the ways in which scrap and waste are different:

The definition

To put it formally, scrap denotes the discarded materials that are no longer useful for their original purpose but can be recycled or repurposed. These can be metal or non-metal materials, based on the production process. On the other hand, waste is also a discarded material or a byproduct of a production process, where the substance has to be thrown away after its primary use, and cannot be used again in the same or a recycled form. 

The tangibility 

Scrap is always a tangible thing. You can see it; it’s the offcuts of a metal sheet after you’ve cut off the bits you need, or it is the honeycomb left behind after metal buttons have been extracted from a sheet. And if it can be seen, it has the potential to be judged valid for future use, in a recycled or repurposed form.  Waste, on the other hand, can be both tangible and intangible. The tangible kind includes things like:

• Smoke or gas emissions from a process
• The residue of a chemical reaction
• The garbage is disposed of after a process is completed

The intangible kinds of waste are not only in terms of time, money, and resources that are put behind an unsuccessful endeavour, but also the impact that any kind of production or manufacture has on the long-term sustainability of the ecosystem around the plant. 

The biggest difference: Potential

Waste has no potential when it is discarded. There is a reason it is called “waste” – in that it cannot be used in its original form, or a refurbished or recycled form. Scrap, on the other hand, no matter whatever source it comes from, contains limitless potential. It can be recycled to produce more products, with reduced emissions and reduced wastage. Green steel is one such example, where scrap metal can be used to produce steel, eliminating the high need for iron ore in the process. Even non-ferrous scraps, especially what is considered e-waste, can be recycled and repurposed in order to be used to create other products and components. Using scrap allows us to reduce waste and wastage by ensuring that discarded materials are put to better use, saving time, money, resources, and also creating a more sustainable production ecosystem. 

The Scrapcart angle

At Scrapcart, we understand the value of scrap and the potential it contains, not just for MSMEs, but for enterprises of all sizes, in terms of helping them access worthy resources that improve the sustainability of their production and can enhance scale. By streamlining the process of scrap trade, and ensuring a solid combination of manned operations and tech-backed processes, with high compliance, we are on the journey to improve access to scrap, and showcasing its advantages across the board.

In December 2024, India made a landmark move toward decarbonising its industrial sector by releasing a national green steel taxonomy. This policy outlines the definitions, standards, and criteria for what qualifies as green steel in India's journey toward net-zero carbon emissions in the steel industry. One of the first companies to align with this effort is ArcelorMittal Nippon Steel India. It has committed to bringing 70% of its steel production under the green steel category by 2027. 

This signals a strong push from the private sector to embrace environmentally sustainable steel production practices in line with the national climate agenda.

But what exactly is green steel, and why does it matter?

Green steel refers to steel that is produced with little or no carbon dioxide (CO2) emissions. Traditional steel manufacturing is one of the most polluting industrial processes in the world. It currently accounts for about 8% of global carbon emissions. Green steel seeks to reduce or eliminate this impact.

There are two primary ways to produce green steel. The first is to use green hydrogen instead of coal in the steelmaking process. This eliminates CO2 emissions if the hydrogen itself is produced from renewable energy. However, sourcing low-carbon hydrogen remains a major challenge, especially in India.

The second and more immediate solution is to use scrap steel. This method involves recycling existing steel products, such as old cars, appliances, or construction materials, to manufacture new steel. By avoiding the carbon-intensive process of converting iron ore into steel, this method offers a practical and scalable pathway to lower emissions.

Why does scrap steel make sense for green steel production in India?

All steel originates from iron ore, and the conversion process emits significant carbon dioxide. However, when steel is recycled, the emissions from the original manufacturing process do not need to be repeated. This makes scrap steel an efficient way to reduce the overall carbon footprint of the steel industry.

Steel is used everywhere, from cars and airplanes to household appliances and kitchenware. In Indian homes, steel is a staple material, which means demand is unlikely to decrease. What needs to change is how we meet that demand.

Recycling scrap steel offers a more scalable and accessible path to sustainability. India’s scrap industry is already worth over $18 billion. If this industry were better organised and supported by clear sourcing mechanisms, it could help meet green steel production goals faster and more effectively.

Importantly, using scrap steel can reduce emissions by up to 87% compared to conventional steelmaking. While it may not completely eliminate emissions, it is a major step toward achieving India's goal of cutting steel industry emissions by 75% by 2027.

Green steel production using scrap also supports the United Nations Sustainable Development Goals. Specifically, it contributes to SDG 13, which focuses on climate action, and SDG 9, which aims to build resilient infrastructure and promote sustainable industrialisation.

The Scrapcart angle

At Scrapcart, we understand the value of scrap, in that it has numerous applications outside of just being wasted material that is dumped into a yard for multiple lobbies to fight over. With the use of scrap steel and ferrous scrap for green steel manufacture and production, it is important for the scrap market to be streamlined, well priced, and well poised to contribute towards these sustainable solutions for the future.

For decades, selling scrap has been a tedious process—manual negotiations, inconsistent pricing, and unreliable buyers often lead to underpriced deals and slow-moving stock. But the future of scrap trading is digital, and e-auctions are revolutionizing the industry by making transactions faster, fairer, and more competitive.

At Scrapcart, our e-auction feature allows sellers to: 

✅ Set a base price and let buyers compete in real-time 
✅ Attract a wider network of serious, verified buyers
✅ Eliminate middlemen and get the true market value

No more endless phone calls, haggling, or delayed payments—our system ensures instant buyer interest, secure transactions, and the best possible price for your scrap. Whether you’re selling metals, industrial by-products, or obsolete machinery, e-auctions help you move inventory quickly and profitably.

With Scrapcart, you don’t just sell scrap—you unlock its maximum potential. Join the platform today and see the future of scrap trading in action!

Managing industrial scrap is often an afterthought for businesses. Many manufacturers and factories let scrap accumulate, waiting for the right time to sell—but this approach leads to cluttered warehouses, lost revenue, and inefficiencies. In today’s fast-paced world, businesses that embrace digital scrap management gain a huge competitive edge.

With Scrapcart, you can:
1. List, auction, or set an offer price with just a few clicks
2. Connect instantly with verified buyers who need your scrap
3. Track your scrap sales, bids, and transactions in real time
4. Ensure secure payments and smooth logistics

Whether you're a manufacturer, recycler, or scrap trader, our platform eliminates the traditional headaches of scrap disposal and helps you sell smarter, faster, and for the best price.

Instead of letting scrap become a liability, turn it into an efficient revenue stream. Go digital with Scrapcart today and experience the future of scrap trading! 

Every manufacturing process generates scrap—whether it’s metal, plastic, paper, or electronic waste. But instead of letting it pile up in warehouses or selling it at throwaway prices, why not turn it into a steady source of revenue? The scrap market is booming, and businesses that optimize their scrap sales not only reduce waste but also increase their bottom line.

At Scrapcart, we simplify the process by offering a transparent, hassle-free platform where sellers can list their scrap, set pricing, or auction it off to the highest bidder. No more unreliable middlemen or inconsistent pricing—just fair, competitive, and secure transactions that help you maximize your returns.

Whether you’re a manufacturer with surplus materials or a scrap trader looking for bulk deals, Scrapcart is your one-stop solution for smart and profitable scrap trading.

♻️ Join the Scrapcart marketplace today and make your scrap work for you!