Introduction

Tata Steel is building EAF-based recycling plants, in which Arcelor Mittal Nippon Steel (AM/NS) India plans to develop steel scrap processing centres across the country as aimed by National Steel Policy 2017 to develop a globally competitive steel industry by creating 300 tonnes of steel production capacity by 2030, accounting for 35-40% of the EAF route.

Additionally, JSW Steel’s Dolvi plant uses scrap as a raw material. Steel scrap comes from a variety of sources, including factory scrap, used structural components such as beams, reinforced steel, and objects plants and machinery such as pipes, tubes, old vehicles, household items, car waste, shipbuilding, and railways. Indian steelmakers need to increase scrap steel production in the country to reduce the extraction of natural resources such as iron ore, and coking coal and reduce CO2 emissions.

The International steelmaker plans to increase its use of scrap from the current 3-5% to around 10 percent by 2030 as part of AM/NS India to reduce emissions intensity by 20% of the time. To support the circular economy of steel, the company also announced its intention to open several steel scrap processing centers in various parts of the company.

Last September, JSW Steel acquired NSHL’s New Zealand metal recycling business and increased its stake in NSL Green Steel Recycling Ltd to 100% and their main objective is to build scrap crushing plants in India. The company will start with a plant in Khalapur, Maharashtra, which would supply scrap metal in bales or bundles to JSW Steel’s Dolvi plant.

The project should be completed in the 25th financial year. The steelmaker is replicating this with more steel plants. Tata Steel’s EAF plant with a capacity of 0.75 million tonnes(MT) is being built near Ludhiana. The steel producer plans to increase its domestic production capacity to 36 tons per year by building some similar furnaces in other parts of the country.

In 2021, Tata Steel opened its 0.5-tonne steel recycling plant in Rohtak, Haryana in collaboration with Aarti Green Tech Ltd. The plant has Presses, crushes, and handling units for industrial, construction, and demolition work, old homes, and junk cars.

The steel producer plans to invest 1.225 billion euros in capital investment also for EAF-based use. The UK government has provided a $621 million subsidy package to Tata Steel’s proposal. 

The scrap steel recycling policy saves 1.1 tons of iron ore, 630 kg of coking coal, and 55 kg of limestone for every tonne of waste used. Energy consumption has been significantly reduced. In addition, it will also reduce greenhouse gas emissions by 58% and water use by 40%

India’s demand for scrap metal is set to grow by 12% to 29% tonnes in 2023, but domestic scrap production is insufficient. The demand from abroad is so satisfactory. Scrap import for the steel industry was around 9.8 MT in FY23 against 3.6 MT in FY22. In 2022, the country imported more than $12 billion of scrap metal. More than twice as much as five years ago.