Indian Government Allows Scrap Imports at Some Ports

The Director General for India’s Foreign Trade has announced that it is permitting the importing of scrap metal at several container ports, including a recent decision to allow for the import into the Ludhiana port.

A notice by the DGFT states that import of metallic waste and scrap in unshredded, compressed and loose form shall be permitted through various ports, including Ludhiana’s inland container depot.

The decision would provide relief to industry that was suffering due to shortage of scrap.

A ban on import of scrap at the container port was imposed after explosives were found from imported scrap, resulting in its acute shortage and consequently increased prices.

The move would not merely benefit furnaces but steel consuming industry in the state as well, which had been suffering in the recent past due to the ban.

With furnaces in Ludhiana meeting majority of the demand of the steel consuming industry, permission to import scrap would revive the industry that was suffering major losses.

According to the India’s Director General, about 50 furnaces in Ludhiana, between 40-45 furnaces in Mandi Gobindgarh and a similar number at other places in the state would benefit from this decision.

Ludhiana reportedly used to receive 4,000-5,000 containers of scrap every month and its exclusion had also hit functioning shipping companies. The dry port supplied scrap to Mandi Gobindgarh, HP and Jammu and Kashmir.

Other ports where such scrap and waste import has been permitted are Chennai, Cochin, Ennore, JNPT, Kandla, Moriugad, Mumbai, Kolkata, New Mangalore, Paradip, Tutirocin, Vishakhapatnam, ICD Tughlakabad, Pipavin, Mundra and ICD Dadri, Greater Noida.