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22 OCTOBER 2018 AL CIRCLE

India's aluminium scraps import increases 21% YoY in H1 FY2018-2019

EDITED BY : HEENA IQBAL 2MINS READ

According to data from the Aluminium Association of India (AAI), aluminium scraps import by India increased by 21.44 per cent during April-September period of financial year 2018-2019.

The total volume of India’s aluminium scrap import rose from 541,000 tonne during the first half of financial year 2017-2018 to 6,57,000 tonnes during the first half of financial year 2018-2019.

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Aluminium Association of India urged Indian government to impose higher import duty on aluminium scrap to protect domestic primary aluminium industry. "We have a capacity of 4 million tonnes per annum (MTPA) and our consumption is 3.6 MT which we are producing. So, what will be the situation in the market when import will start increasing. It will ruin the domestic aluminium industry," AAI said earlier.

Aluminium scrap import rose to 24 per cent to 3,12,000 tonnes in April-June quarter of 2018-2019 fiscal compared to 2,51,000 tonnes in the April-June quarter of 2017-2018 fiscal. The import of aluminium scrap increased 19 per cent to 3,45,000 tonnes in July-September quarter of 2018-2019 fiscal compared to 2,90,000 tonne in July-September quarter of 2017-2018 fiscal.

An AAI official said in the statement: “In both the quarters, there is a rise. The government must take immediate steps to restrict the import of low quality scrap. It is a major threat posing the industry. Aluminium is required by the industries like automobile, construction, consumer goods etc., which are on a growth trajectory in India. One can imagine the life of the products which is made up of substandard raw material.”

“We have suggested an increase in the duty to 10 per cent on scrap from the current 2.5 per cent. We also want quantitative restrictions to be put in place.”

The industry has also been demanding an increase in import duty on primary aluminium. The import duties for aluminium in India are 2.5 per cent for scrap and 7.5 per cent for primary aluminium.

Aluminium scrap imports by India grew year on year. India’s aluminium scrap import stood at 1.12 million tonnes in FY2017-2018, an increase of 20.41 per cent from 0.93 million tonnes in in FY2016-2017.


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EDITED BY : HEENA IQBAL 2MINS READ

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