MRAI urges Indian government to improve aluminium scrap availability

A secondary aluminium industry body Material Recycling Association of India (MRAI) on Thursday, September 27, has requested Indian government to take steps to improve the availability of scrap and address concerns raised by the secondary aluminium industry. The body will also submit a memorandum with the Department of Industrial Policy and Promotion (DIPP) Secretary in October.

Earlier, MRAI urged government to completely eradicate the 2.5 per cent customs duty on aluminium scrap import.  A hike in duty would restrict the availability of scrap for recycled aluminium. According to MRAI, more than 5000 units of aluminium scrap will be less available in the country on the application of duty.

MRI President Sanjay Mehta said: "Aluminium scrap is the key raw material of aluminium recycling industry. It is mainly used in alloy ingots, castings which are further used in the automobiles industry and Deox which are used in a steel plant for deoxidation. The scrap is being heavily imported from outside the country which means there is a demand for it.”

"We make semi-products from scrap whereas semi-products are also entering India under FTAs (free trade agreements) and do these factors at times it becomes difficult for us to take out even our making cost," Mehta added.

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% from 0.93 million tonnes in in FY2016-2017.