India’s aluminium producers are teaming up with planning think-tank Niti Aayog and the Bureau of Indian Standards (BIS) to retool the country’s standards for scrap aluminium usage in order to contain the rising tide of imported scrap aluminium and what stakeholders consider to be odd usages of it.
Prompted by trade tensions between the governments in Beijing and Washington, D.C., India has become a port in the trade storm, with little help from an import duty of only 2.5 percent and tightening regulations on scrap aluminium imports being promulgated by China.
“Scrap imports in this fiscal have moved up eight per cent during the June quarter,” said an unnamed industry source to domestic media. “While the hike in volumes of inbound scrap shipments worries us, we are more concerned about its usage. More scrap is entering into electric wires and kitchen utensils apart from their uptake by alloy ingot makers and this is a disturbing trend. To check its unwanted applications, we are engaging Niti Aayog and BIS to frame standards for scrap.”
As of March, India leapfrogged the Middle Kingdom as the globe’s most prolific aluminium scrap importer, as China’s imported aluminium scrap fell by 32 percent in the first quarter while India’s spiked by 19 percent in the same time span.
Experts say the increase in India’s demand for scrap aluminium is the product of a need for secondary aluminium alloy by automobile components and housing manufacturers. Meanwhile, Chinese imports continue to dwindle as Beijing clamps down in order to combat emissions.