Aluminium scrap imports drop 16% y-o-y in Q1CY'26. Will India face tighter supplies in Q2?

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India's aluminium scrap imports declined by 16 per cent Y-o-Y to 0.35 tonnes in Q1CY'26, down from 0.42 tonnes in the corresponding period last year.

The country remains heavily dependent on imports, with nearly 85 per cent of its aluminium scrap requirement sourced from overseas. As a result, the decline in arrivals has had a direct impact on domestic secondary producers, who rely on a consistent inflow of scrap to sustain production.

The downturn has been driven by a combination of volatile LME prices, constrained global supply, and currency pressures, which have elevated landed costs and weakened fresh booking activity. This situation has been further aggravated by escalating geopolitical tensions in the Middle East, which have disrupted key trade flows, increased freight and insurance costs, and tightened scrap availability from major exporting regions. As a result, supply to India has become more uncertain, while domestic prices have firmed in response to global cues.

Notably, India's aluminium scrap imports peaked at 0.2 tonnes in October 2025, following which arrivals witnessed a steady decline, before dropping sharply to 0.1 tonnes by March 2026. This trend highlights a marked slowdown in import volumes over the period.

Grade-wise & country-wise imports

India's aluminium scrap imports were largely dominated by taint tabor and Zorba, which remained the most imported grades in Q1CY'26 despite witnessing notable declines of 19 per cent Y-o-Y and 21 per cent y-o-y, respectively, significantly impacting overall volumes. Among all grades, troma recorded the steepest decline at 30 per cent y-o-y, followed closely by zorba and extrusion, indicating sharp weakness in mixed and processed scrap inflows.