MRAI Urges Government to Eliminate Duty on Steel Scrap Imports

SEATTLE (Scrap Monster): The Material Recycling Association of India (MRAI) has urged the government to abolish the 2.5% import duty on steel scrap. The Association noted that the duty is a burden on domestic ferrous metal industry, which is already facing considerable pressures.

Sanjay Mehta, President, MRAI noted that the government should act immediately to drop the duty, making the country’s duty structure to match with the zero duty structure elsewhere in the world. The duty leaves the electric arc furnaces (EAFs) and induction furnaces in the country uncompetitive, as they largely depend on imported scrap. It is estimated that scrap-based steel production is likely to account for up to 40% of the total steel output by the country.

ALSO READ: Ferrous Scrap Supply and Demand to Take a Hit in 2020

The webinar, organized by the association, highlighted the need for a National Material Recycling Policy, which is predicted to boost domestic scrap supply. The participants called for implementation of an end-of-life vehicle (ELV) policy, by which private vehicles older than 15 years and commercial vehicles older than 10 years need to be scrapped compulsorily. The insurance companies must be strictly instructed to not provide coverage for such vehicles, they added.

In addition, the country should adopt ISRI guidelines for ferrous scrap and implement policy actions to regulate the informal scrap sector.