Amid Spike In Imported Aluminium Scrap, India’s Aluminium Sector Continues Plea For Relief

Amid Spike In Imported Aluminium Scrap, India’s Aluminium Sector Continues Plea For Relief

Scrap aluminium imported into India spiked by 21.44 percent since the start of the fiscal year, with buyers shipping in 657 thousand metric tons since April 1.

According to the Aluminium Association of India (AAI), the government must soon enact artificial barriers to such imports, which rose from last year’s first-half imported aluminium total of 541 thousand metric tons. The AAI reminded readers that it has pleaded with the Department of Industrial Policy and Promotion (DIPP) for such measures since mid-summer.

The Association has kept up the call since then, telling politicians and regulators that scrap aluminium imports are the harmful results of escalating trade unpleasantness between the United States and the People’s Republic of China. In the intervening months, scrap aluminium imports continued to rise, increasing to 345 thousand metric tons in the quarter ending in September, a 19-percent increase year-on-year.

The Association emphasized the need for swift and certain action by the government in its statement.

“In both the quarters, there is a rise. The government must take immediate steps to restrict the import of low quality scrap. It is a major threat posing the industry. Aluminium is required by the industries like automobile, construction, consumer goods, etc which are on a growth trajectory in India. One can imagine the life of the products which is made up of substandard raw material.”

“We have suggested an increase in the duty to 10 per cent on scrap from the current 2.5 per cent,” the Association continued. “We also want quantitative restrictions to be put in place.”

In addition to protection from imported scrap, the AAI also continues to seek an increase to the import duty of primary aluminium, from 2.5 percent to 10 percent. As it stands now, the differing fee structure between raw aluminium and aluminium scrap encourages dumping of scrap, argued the Association.