Decarbonisation lever: AM/NS India to raise scrap mix in steelmaking to 10% by 2030

• Opportunity for ship-breaking sector to generate 3-4 mnt/year of scrap
  
  
• ELV policy key to unlocking domestic ferrous scrap potential
  
  
• Global protectionist scrap trade major roadblock in steel decarbonisation
  
  

Integrated steel producer AM/NS India has a scrap mix of 3-5% of its total steelmaking capacity, which the company aims to significantly increase in the coming years, targeting a scrap mix of over 10% by 2030.

AM/NS India is committed to scale down carbon emissions intensity to 1.8 tco2e/tcs (tonne of crude steel) by 2030 from 2.23 tco2e/tcs currently. To achieve this target, enhancing scrap usage in steelmaking, according to the company's estimates, will help in bringing down emissions by 6-7% till 2030.

Strategies

AM/NS India is upgrading existing facilities and establishing a brand new scrapyard and processing unit in one of its major plants (yet undeclared)

Company aims to set up new industrial scrap processing centres across India, strategically placed in the vicinity of industrial scrap generation and automotive clusters to simplify and expand collection

Circular steel economy and sourcing of household scrap

Scrap generation avenues

India has a large coastline which makes it an ideal hub for international ship-breaking. Building on strong foundations, there is further opportunity to generate approximately 3-4 mnt of scrap annually if the government can work with industry to invest in facilities and attract international interest in Indian ship-breaking

The government's End of Life Vehicle (ELV) policy will incentivise consumers to take their used cars to be recycled

Why scrap is key?

Today, India is a net importer of scrap. As countries and companies around the world seek to increase scrap use to decarbonise steelmaking, it will put further pressure on global supply and make it even harder for India to import scrap at a viable price.

AM/NS India is developing plans to collaborate with its customers directly to build a circular economy for steel through enhanced scrap processing and usage.