🏗️ Aluminium Scrap Import in India – Case Study
✅ Why Import Aluminium Scrap?
India’s aluminium demand is growing due to the automotive, construction, and
electrical sectors.
Domestic scrap supply is insufficient.
Cheaper to recycle scrap aluminium than refine new.
GST benefits and duty exemptions under some trade agreements.
💰 Investment Required (Per 40-ft Container 25MT Aprox)
Cost Head Estimated Amount (INR)
Purchase Price of Scrap (FOB) ₹12,00,000 – ₹13,00,000
Ocean Freight (CIF to Indian Port) ₹1,50,000 – ₹2,00,000
Custom Duty (~2.5–5%) ₹30,000 – ₹70,000
GST (18% IGST on CIF) ₹2,00,000 – ₹2,50,000
CHA, Transport, Port Charges ₹40,000 – ₹60,000
Misc. & Unloading Costs ₹20,000 – ₹40,000
Total Investment per Container ₹16.5 – ₹18.5 Lakh
GST credit is claimable if you are a registered firm with a recycling or manufacturing setup.
🌍 Top Sourcing Countries
USA 🇺🇸
UK 🇬🇧
UAE 🇦🇪
Saudi Arabia 🇸🇦
Germany 🇩🇪
Australia 🇦🇺
Malaysia & Thailand 🇲🇾 🇹🇭
🔗 Top Aluminium Scrap Suppliers (Verified Contacts)
Metal & Recycling Company (Kuwait)
Sims Metal Management (Global, esp. Australia/USA)
ALBA Group (Germany)
Paprec Group (France)
Emirates Recycling LLC (Dubai)
Sunmetal Recycling (Thailand)
(Please verify it yourself before making any deal ***)
You can also source verified exporters via B2B summits, Metal Expo India, or through
DGFT/Embassy connections.
🛃 Licensing Requirements in India
1. IEC (Import Export Code) – From DGFT
2. GST Registration
3. Pollution Control Board (CPCB) Clearance
4. Consent from State Pollution Board (for recycling units)
5. DGFT Import License (if required) for restricted metal scrap
6. Pre-shipment Inspection Certificate (PSIC) – From DGFT authorized agency
7. BIS Registration – If applicable (for certain alloyed scraps)
📄 Import Documentation Checklist
Commercial Invoice
Packing List
Bill of Lading
PSIC (Pre-shipment Inspection)
Certificate of Origin
Test Report (sometimes required for alloyed scrap)
Delivery Order from shipping line
KYC documents of importer
Pollution clearance (if you're a recycling unit)
📈 Profit Potential
Scenario Amount (INR)
Selling Price of Scrap (per MT) ₹1,60 – ₹1.75 lakh
Container Load (approx. 10–12 MT) ₹16.5 – ₹20 lakh
Total Cost ₹16.5 – ₹18.5 lakh
Net Profit (realistic) ₹1 lakh – ₹2 lakh
✅ Scrap buyers are usually rolling mills, foundries, and ingot manufacturers.
📌 Margin depends on timing, alloy type (e.g., Tense, Taint/Tabor, Zorba), purity, and freight
rates.
🚧 Challenges You May Face
Customs clearance delays due to contamination concerns
Finding genuine suppliers (scams are common in scrap)
Global freight fluctuations
Policy changes (BIS mandates, anti-dumping duties)
Local demand/sale linkage (you must have buyers ready)
📦 Best Indian Ports for Aluminium Scrap Imports
Nhava Sheva (JNPT), Maharashtra
Mundra, Gujarat
Chennai Port, Tamil Nadu
Kolkata Port (for NE buyers)
✅ Pro Tips for Beginners
Partner with a CHA who has scrap experience
Avoid blacklisted suppliers — verify with DGFT list
Do small test shipments (5–10 MT) before full container
Have local buyers ready (rolling mills, factories)
Always ensure PSIC and alloy composition reports are verified
