India's stainless steel scrap imports are likely to remain subdued during the second half of 2026 as elevated input costs continue to make domestic material more competitive, according to a report from BigMint, a metal consultancy firm. The market is expected to focus on need-based procurement, with imports potentially recovering only if international scrap prices, freight rates decline significantly, or the rupee strengthens sufficiently to narrow the cost differential between domestic and imported materials. Indonesia's policy decisions on mining quotas and its planned commodity exchange will be key external factors influencing India's stainless steel scrap import dynamics over the next six months, BigMint noted.
However, Jindal Stainless Ltd.'s capacity expansion is projected to increase aggregate scrap demand beyond what domestic generation can support, potentially establishing a structural floor for imports in the medium term. BigMint stated that the long-term outlook for Indian scrap imports remains positive, noting that India will continue to be a significant and growing scrap importer through the end of the decade, though pricing, origin mix, and procurement strategies are expected to differ materially from current market conditions. India's stainless steel scrap imports declined 6% year-on-year to 670,000 tonnes during the January-June 2026 period, compared to 710,000 tonnes in the same period of 2025.
The pullback was driven by elevated input costs, rupee weakness, disruptions to freight routes, volatile nickel prices, and a strategic shift toward domestically available scrap, which proved more economical for Indian buyers. Imported 304-grade stainless steel scrap averaged $1,410-$1,450 per tonne during the first half of 2026, approximately $100-$130 higher than the year-ago period. By June 2026, import offers had climbed to $1,540-$1,550 per tonne.
During January-June, 304-grade scrap imports rose 1% year-on-year to 260,000 tonnes, while 430-grade imports increased 14% to 68,000 tonnes. In contrast, 316-grade scrap imports declined 3% to 60,000 tonnes. At an average exchange rate of INR 94.66 per dollar in June, the landed cost of imported scrap, including approximately INR 3,500 per tonne in freight, customs, port handling and clearance charges, was estimated at INR 148,000-INR 149,000 per tonne.
Domestic 304-grade scrap was available at approximately INR 144,000 per tonne. This cost differential encouraged buyers to limit overseas purchases and cover only near-term requirements rather than build inventories. Regarding import origins, the United States remained India's largest supplier with shipments rising 4% year-on-year to 94,000 tonnes.
South Korea supplied 51,000 tonnes, down 6% from the prior year, while imports from Turkey fell 16% to 23,000 tonnes. Other ferrous imports showed mixed trends. Slab imports fell 12.5% year-on-year to 175,000 tonnes, while ferro-nickel imports plunged 62% to 20,000 tonnes.
Billet imports increased 30% to 30,000 tonnes, though BigMint noted this absolute increase was insufficient to materially explain the scrap import decline. The sharp fall in ferro-nickel imports was attributed to elevated Indonesian nickel ore prices, tighter mining quotas, changes to reference pricing mechanisms, and higher energy costs. The subsequent shift toward nickel-bearing stainless steel scrap was predominantly satisfied through domestic material rather than additional imports.
India also imported approximately 65,000 tonnes of stainless steel hot-rolled coil (HRC) during January-June 2026, up 58% from 41,000 tonnes in the same period of 2025. This increase suggests a gradual transition toward finished stainless steel imports to meet domestic consumption, potentially reducing the need for scrap-based melting in certain downstream applications. Source: Informist Media, BigMint
Source: informistmedia.com