How does the scrap market in India really work?

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.