Indian steelmaker ArcelorMittal Nippon Steel (AM/NS) commissioned its first scrap processing facility at Khopoli in western India's Maharashtra state.
The 120,000 t/yr facility is the first of four scrap processing units planned by AM/NS to increase supply of domestic scrap. The unit is expected to be operational this year.
AM/NS, which has a crude steel capacity of 9mn t/yr, has targeted increasing the scrap mix in its steelmaking from 3-5pc at present to over 10pc by 2030.
The company said it can reduce conversion and logistics costs by processing scrap at its own units, instead of procuring it through a complex supply chain where scrap moves from local collectors to scrapyards to consumers.
The Indian government has been pushing for higher domestic scrap production to reduce reliance on imports and aid decarbonisation efforts. A vehicle scrappage policy is currently in place, while the government in its financial year 2025-26 budget also outlined measures to boost scrap production through shipbreaking.
Still, scrap production has been falling short of the industry's requirements and domestic scrap availability needs to increase, according to market sources.
India's scrap imports fell last year as demand faltered and fluctuated and government spending failed to meet expectations. Scrap imports in the south Asian country stood at 8mn t in 2024, falling by just over 20pc from 10.2mn t the previous year, according to customs data. Earlier this year, the rupee's decline to a record low against the US dollar also made imported scrap unviable for many customers, including secondary scrap-based steelmaking units.
AM/NS has set aside 3.5bn rupees ($40.8mn) towards a scrap production scheme. About 65pc of the company's steelmaking capacity uses the gas-based direct reduced iron-electric arc furnace (DRI-EAF) route, it said.
