A Brief Perspective on the Indian Metals Recycling Industry. Arnab Kumar Hazra Director, FICCI

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Andrea Franklin
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1 A Brief Perspective on the Indian Metals Recycling Industry Arnab Kumar Hazra Director, FICCI

2 Background The Metals Recycling Industry will increasingly play a larger role. India imported 4.9 million tonnes of metal scrap in and 26.9 million tonnes of scrap was generated in India in The industry is expected to grow at a CAGR of % in the next 5 years. This signifies the huge potential India has to grow in scrap recycling. Currently in India approximately 6-7 lakh people are employed in the recycling industry. But this figure can multiply if supported by enabling policies. International Scrap Recycling industry is worth over $500 Billion, directly employs over 1.6 Million people and handles over 600 Million tones of recyclables every year.

3 Background India Imports 9-10 million tonnes of metal scrap every year at an average. Clearly there exists a demand-supply mismatch. Given the size of India s economy, this demand supply mismatch need not have been there to be fulfilled through imports. The supply side can be augmented by enabling legislation and policy thrust. On the demand side, metal scrap, especially steel scrap is an important raw material source for Electric and Induction Furnace mills as well as for Non- Ferrous Secondary Sector producers.

4 Benefits The use of scrap metal has become an integral part of the modern steelmaking industry, improving the industry s economic viability and reducing environmental impact. Almost 40% of the world s steel production is made from scrap. Compared to ore extraction, the use of secondary ferrous metals significantly reduces CO2 emissions, energy and water consumption and also reduces air pollution. CO2 emissions are reduced by 58% through use of ferrous scrap. Steel recycling uses 74% less energy, 90% less virgin materials and 40% less water; it also produces 76% fewer water pollutants, 86% fewer air pollutants and 97% less mining waste. And at the same time makes more efficient use of the earth s natural resources.

5 Benefits Millions of tonnes of nonferrous scrap (aluminium, copper, lead, zinc, nickel, titanium, cobalt, chromium) are recovered annually and used by smelters, refiners, ingot makers, foundries, and other manufacturers. Secondary materials are essential even new metals often require the combined use of recycled materials. About 40% of copper demand worldwide is met from recycled material. Recycling copper saves up to 85% of the energy used in primary production. At present, approximately 30% of global zinc production comes from secondary zinc. Over 80% of the zinc available for recycling is eventually recycled. Secondary zinc production uses 76% less energy than primary.

6 Benefits One tonne of recycled aluminium saves up to 8 tonnes of bauxite, 14,000 kwh of energy, 40 barrels (6300 litres) of oil, 238 million Btu's of energy and 7.6 cubic metres of landfill. Around 80% of lead is used in acid batteries, which is recoverable and recyclable. Some countries boast a 100% recycling rate. Using secondary lead instead of ore reduces CO2 emissions by 99%. Thus the environmental benefits as well as the energy savings are tremendous, which needs to be recognized and supported through policies like Carbon Credits for the Recycling Industry.

7 Challenges In India we do not have any formal organized Metals Recycling industry structure in India. The industry is not highly regarded and there are no specially designated zones/areas for Metals Recycling We need domestic laws and legislation to drive the metals recycling industry by way of greater generation of metals scraps. For example, we need definitive end of life vehicle legislation, which would scrap a vehicle after say 15 years. There has also been a palpable lack of Central and State Government support to promote recycling of metals. Despite being environmentally benign import duty is levied on Metals Recycling Equipment/Radiation Detection Equipment. There are also issues related to customs duty.

8 Challenges As mentioned before, the primary challenge is to augment the internal generation of metal scrap. Promoting ship-breaking yards along India s coastlines is one important step the Government can undertake. Carbon Credits for the Recycling Industry needs to be promoted. Forming specially designated zones/areas for Metals Recycling on outskirts of each major city should be taken up on priority. There is no policy per se on scrap recycling and there is a dire need for it. Finally scrap also needs to be defined properly.

9 THANK YOU

Economic Impact Study

Economic Impact Study U.S.- Based Scrap Recycling Industry 2015 Prepared for the Institute for Scrap Recycling Industries, Inc. Executive Summary Scrap recycling is a major U.S.-based industry dedicated