India's Steel Forecast 2030: Call for Auto Scrapping Policy for Price Impact

As per the Economic Survey presented before India's parliament predicts that by 2030 India will consume about 70-80 million MT of steel per year. Which account about 70-80% of total domestic steel production.

The economic survey outlined the absence of an automobile scrapping policy has led to a fragmented process of scrap generation and processing, resulting in the importation of 6-7 million metric tons of scrap each year.in India the automobile ownership average has decreased from 6-8 years to 3-5 years. This will result to 21.8 million vehicle reached end of life which further generate 10 million Mt of scrap. If utilized properly this will increase the secondary steel production and can impact steel price forecast.

Despite this, the Ministry of Roads and Highways currently gave prioritized the to exploring alternatives to increased the ownership costs for vehicle beyond a specified age by increasing the renewal and registration cost for certificates of fitness for older vehicle. . Instead. the government need to increased its focus on implementation of a mandatory automobile scrapping policy this policy will help industry to manage the scrap weight and increased secondary steel production which will positively impact the steel price forecast.