Aluminium scrap recycling and recovery have become an integral part of the aluminium industry in every country in order to yield reasonably high-purity molten metal at a much lower cost and using fifty per cent less energy than primary aluminium. Indian recyclers import considerable amount of aluminium scrap in order to make remelt aluminium and supply to the domestic downstream sector, mostly utensil makers, die casters and extruders. However, India displays lack of structure for aluminium scrap handling and secondary metal recovery. India’s metal recycling rate is just about 25%. There are hardly any laws governing the scrap sector except for the e-waste which came into existence in 2011.
In the year 2014, India imported 8, 40,540 tons of aluminium scrap. The value of import was USD 1.5 billion for the same amount. In the year 2015, the amount increased to 8, 82,881tons and the value of import stood at USD 1.4 billion. In the year 2016, India is estimated to import 9, 21,888tons of aluminium scrap and the value of export is estimated to stand at USD 1.3 billion. The top aluminium scrap exporters to India are Saudi Arabia and United Arab Emirates which two countries together contribute about 25% of scrap import. They are followed by Netherland and Australia.
{alcircleadd}{newsStudioGallery}
The unorganized recycling aluminium sector is characterized by the presence of a large number of SMEs clustered mostly in the southern states of India. According to Satish Pai, MD, Hindalco, about 1.5 million tonnes of aluminium is getting imported into India, about 8,50,000 tons of that is scrap. Out of total aluminium import for consumption in India, 56% is met from aluminium scrap and 44% through unwrought and processed aluminium.
India is yet to emerge in a big way as an aluminium recycling country. In India, there is a protectionist environment in place on the import of metal scrap. For aluminium scrap, India imposes a basic customs duty of 5% and countervailing duty (CVD) of 12% and special countervailing duty of 4% depending on the quality and type of scrap imports. Indian producers are demanding more duties on the import of aluminium and aluminium products.
{googleAdsense}
Finally, an organized scrap recycling industry will help increase aluminium capacity in the country at a lesser cost and energy and enhance overall safety standards that is presently lacking in the unregulated sector.
Responses
