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27 JULY 2018 AL CIRCLE

India’s aluminium scrap import sees Y-o-Y growth and knocks the fear of primary aluminium sector

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

According to the data found by the Ministry of Commerce and Industry, India’s aluminium scrap import grew year on year, while the country’s scrap export, although smaller in volume, stood the same over the past four financial years.

In FY2014-15, a total amount of aluminium scrap imported by India was 870,000 tonnes, which however, decreased a little in the next financial year 2015-16 to 867,000 tonnes, but turned around in the two successive financial years. In FY2016-17, the total volume of India’s aluminium scrap import stood at 931,000 tonnes, 7 per cent up from FY2014-15 and 7.38 per cent up from FY2015-16; while in FY 2017-2018, it grew massively to 1,121,000, 16 per cent higher from its previous financial year.

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The research found India’s import of aluminium scrap jumped 11 per cent in the first seven months of the financial year 2017-18, backed on a sharp increase in primary aluminium prices on the benchmark of London Metal Exchange (LME). Rising demand for secondary aluminium products from the automobile and housing sectors fuelled the import significantly.

Data compiled by the Directorate General of Commercial Intelligence and Statistics (DGCIS) showed this import at 0.63 million tonnes for April-October 2017, compared to 0.57 mt in the corresponding period a year before.

Given this huge surge in aluminium scrap import to India, Aluminium Association of India (AAI) demands the Centre to increase import duty on scrap. The association demands this fearing that the huge escalation in aluminium scrap import would affect the domestic primary aluminium industry.

In support to the demand the association also said, "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."

On the other hand, in contrast to the import volume, India’s aluminium scrap export volume stands minimal, which surprisingly neither increases nor decreases over the years, Ministry of Commerce and Industry found. In FY2014-15 and FY2015-16, India’s aluminium scrap export volume was at 5,000 tonnes, which plunged a bit to 4,000 tonnes in FY2016-17 but rounded back to 5,000 tonnes again in the next financial year 2017-18, ended on 31st of March.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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