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Steel scrap has become an increasingly strategic resource for countries and their steelmakers as a key input for emissions reductions. India, the world’s second largest steel producer, has set ambitious targets to double the share of scrap use in its total steel output in the coming decades. The question is: where is the scrap?

Scrap steel can significantly reduce emissions in steelmaking when used to feed electrified furnaces. It can also bring down emissions from traditional blast furnaces by replacing shares of iron ore used in production, which usually requires carbon-intensive processing.

The coal-powered blast furnace route accounts for nearly 60% of Indian crude steel capacity – a share set to rise with planned expansions. This process drives the iron and steel sector’s contribution of roughly 10% to the country’s total carbon emissions. The potential benefits of greater scrap usage have therefore been highlighted by top industry figures. But supply constraints represent a significant hurdle.

The Indian government aims for scrap to feed 50% of its steel production by 2047, a figure that currently stands at 23%. It is also seeking to more than double its crude steel output in the next decade, to reach 400 million tonnes per year.

With domestic scrap metal availability tight, and systems for its collection still developing, India is currently...

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