How Iron Ore Imports Are Changing the Scrap Trade in India
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.