Scrap Metal Rates in India: A Complete 2026 Guide for Businesses

Updated: April 26, 2026 · 14 min read

Scrap metal rates in India are not set in a vacuum. A factory manager in Bhiwandi who sold mild steel scrap at ₹34/kg in October 2024 watched the same grade fall to ₹30/kg by January 2025 — a ₹4/kg swing on a 50-tonne lot that translated to a ₹2 lakh revenue difference in a single quarter. Behind that swing were LME steel futures, a softening Chinese demand cycle, and a temporary glut of imported HMS scrap through Nhava Sheva. Understanding these mechanics is not optional for anyone who generates or buys industrial scrap at scale.

This guide covers the current rate landscape for steel, copper, and aluminium scrap across India’s major trading centres, the regulatory obligations that now attach to scrap disposal, and the practical steps businesses should take to maximise recovery value without triggering compliance risk.

Where Scrap Metal Rates in India Stand in 2026

Scrap metal rates in India are broadly quoted in ₹ per kilogram at the yard gate, before GST. The table below captures indicative rates for Q1 2026 across the major metal categories. These are yard-gate buying rates — what a scrap dealer pays a seller — not the LME spot price or the finished-goods price.

Metal / Grade	Rate Range (₹/kg, Q1 2026)	Key Reference Market	GST Rate
Mild Steel (MS) Scrap / Shredded	₹30–₹35	Mumbai / Pune	18%
HMS 1&2 (Heavy Melting Scrap)	₹33–₹38	Mandi Gobindgarh / Bhavnagar	18%
Copper Scrap (Millberry / Birch)	₹480–₹530	Delhi-NCR / Chennai	18%
Aluminium Scrap (UBC / Extrusion)	₹95–₹135	Alang / Ahmedabad	18%
Stainless Steel Scrap (304 grade)	₹80–₹105	Mumbai / Bangalore	18%
Brass Scrap (mixed / honey)	₹280–₹320	Jamnagar	18%
Lead Scrap (battery plates)	₹95–₹115	Delhi / Hyderabad	18%

These rates are indicative and shift week to week. The ₹30–₹38/kg band for steel scrap is the range most relevant to manufacturing plants, fabricators, and dismantlers generating bulk ferrous material. Non-ferrous metals — copper at ₹480–₹530/kg, brass at ₹280–₹320/kg — are far more sensitive to LME movements and often require purity certification before a premium rate is offered.

How Scrap Metal Prices Are Actually Determined in India

Three forces set scrap metal rates in India: global commodity benchmarks, domestic demand from secondary steel and non-ferrous smelters, and trade policy. Most factory owners understand the first vaguely. Few understand the second and third well enough to negotiate confidently.

The LME Benchmark and the Indian Discount

The London Metal Exchange (LME) publishes daily settlement prices for copper, aluminium, lead, nickel, and zinc — metals that form the non-ferrous scrap price spine in India. Indian dealers apply a “discount to LME” that reflects freight, quality loss, and the cost of processing. For copper millberry scrap, the Indian yard price typically runs at 85–92% of LME copper cash. For aluminium UBC (used beverage cans), the yield loss from melting means buyers rarely pay more than 60–70% of LME aluminium. Understanding this discount is the first step to knowing whether you are being fairly priced.

Domestic Steel Demand and the Induction Furnace Sector

Steel scrap — MS, HMS, stainless — is priced against what secondary steel producers (primarily induction furnace operators) will pay. India’s secondary steel sector consumes roughly 35–40 million tonnes of scrap annually, with the Ministry of Steel projecting total scrap demand to reach 70 million tonnes by 2030 under the National Steel Policy. When induction furnace utilisation is high — as it typically is in Q4 ahead of infrastructure project completions — yard buyers are willing to stretch rates by ₹2–₹4/kg. When construction activity slows in the monsoon, that premium evaporates.

The Import Duty Factor: What Budget 2025-26 Changed

India’s scrap import policy is a direct lever on domestic rates, and the Union Budget 2025-26 kept most non-ferrous scrap imports at a 2.5% basic customs duty — a continuation of the concessional rate first introduced to ease supply shortfalls. For copper scrap specifically, this duty applies to most ISRI-grade categories under HSN 7404. The practical effect: imported copper scrap landed in Chennai or Nhava Sheva at roughly ₹420–₹440/kg equivalent in early 2026, creating a floor below which domestic sellers could not easily go.

The GST portal’s HSN classification is worth consulting before any bulk scrap transaction. Ferrous scrap falls under HSN 7204; aluminium scrap under HSN 7602; copper scrap under HSN 7404. Misclassification on a GST invoice is an increasingly visible trigger in GST department scrutiny of scrap trading firms, particularly after the DGFT tightened import conditions on second-hand machinery and scrap through a 2024 notification requiring pre-shipment inspection certificates for certain categories.

Ferrous scrap imports — primarily HMS 1&2 — attracted a basic customs duty of 2.5% through FY 2025-26. When global steel markets soften and Indian mills look overseas, these imports depress domestic scrap rates; when the rupee weakens, the landed cost of imported scrap rises, supporting domestic sellers. In Q3 FY 2025-26, a depreciating rupee effectively gave domestic scrap sellers a ₹1–₹2/kg buffer versus comparable imported material.

Regional Rate Variations: Mumbai, Gujarat, Delhi-NCR and the South

Scrap metal rates in India are not uniform. Geography, proximity to smelters, and freight costs create persistent regional differentials that can be worth ₹3–₹8/kg depending on the metal and the direction of flow.

Western India: Mumbai, Thane, Pune, Ahmedabad, Alang

Mumbai and its industrial belt — Thane, Bhiwandi, Navi Mumbai — are the highest-volume ferrous scrap markets in western India. MS scrap rates here track closely with Mandi Gobindgarh (Punjab), the national price-setting centre for steel scrap. Alang in Gujarat is the country’s largest ship-breaking yard and a primary source of HMS scrap; rates there tend to be ₹1–₹3/kg lower than Mumbai yard rates because of surplus supply. Non-ferrous: Jamnagar, also in Gujarat, is the brass-processing capital of India and sets brass scrap prices nationally.

Delhi-NCR and the North

Delhi-NCR has a large concentration of copper wire and cable scrap from electrical demolition projects. Copper scrap rates here tend to be ₹10–₹20/kg higher than secondary markets in Tier-2 cities, reflecting the density of buyers. Mandi Gobindgarh (Punjab) remains the reference point for ferrous grades across the north, with local dealers pricing against that benchmark adjusted for freight.

Tamil Nadu, Karnataka and Telangana

The south’s scrap market is driven by Chennai’s port infrastructure (for imported scrap and non-ferrous input) and Bangalore’s engineering and electronics sector. Aluminium scrap rates in Bangalore tend to run ₹5–₹10/kg above national averages because of high demand from automotive and aerospace component manufacturers. Hyderabad has an active lead scrap market tied to battery recycling clusters, with battery-plate lead scrap transacting at ₹95–₹115/kg in Q1 2026.

The Regulatory Framework Every Scrap Seller Must Know

Selling or buying scrap metal in India is not purely a commercial transaction. Three regulatory frameworks impose obligations — and non-compliance carries real consequences.

The Hazardous and Other Wastes (Management & Transboundary Movement) Rules, 2016

Under the Hazardous and Other Wastes (Management & Transboundary Movement) Rules, 2016, certain metal-containing waste streams — including lead acid battery scrap, paint-contaminated steel, and specific non-ferrous residues — are classified as hazardous waste. Any facility that generates, stores, or transfers such material requires authorisation from the relevant State Pollution Control Board (SPCB) under Rule 6. Selling contaminated scrap to an unauthorised dealer does not absolve the generating factory of liability; the MoEFCC and Central Pollution Control Board (CPCB) have consistently held that the generator retains responsibility for proper disposal.

The Battery Waste Management Rules, 2022

Lead scrap from batteries is specifically regulated under the Battery Waste Management Rules, 2022, which came into force in August 2022. These rules establish an Extended Producer Responsibility (EPR) framework for batteries — including lead acid variants — with collection and recycling targets escalating annually. For the scrap seller, the practical implication is straightforward: battery-plate lead scrap should only be transferred to a recycler registered on the CPCB’s battery waste EPR portal. Transferring lead battery scrap to an unregistered buyer exposes the seller to joint liability in the event of environmental damage, even if the seller had no role in downstream processing.

The Environment (Protection) Act, 1986 and GST Compliance

Scrap trading firms have come under GST department scrutiny for fake input tax credit (ITC) chains — a problem endemic to the unorganised scrap sector. The DGFT and GST enforcement wings have jointly flagged scrap trading as a high-risk sector for ITC fraud. From a compliance standpoint, every scrap purchase must be backed by a genuine GST invoice with the correct HSN code. Section 74 of the CGST Act allows authorities to demand tax, interest, and a penalty of up to 100% of the tax evaded where fraud is established. Clean documentation is not optional — it is a commercial and legal shield.

The 7-Step Checklist to Get Fair Value for Your Scrap This Quarter

Most factories leave ₹2–₹5/kg on the table when selling scrap — not because the market is opaque, but because their internal process is underprepared. Here is what a well-run plant’s scrap disposal process looks like.

1. Segregate by grade before calling dealers. Mixed scrap fetches 10–20% less than segregated material. Separate HMS from shredded MS, copper from copper alloys, and clean aluminium from painted or coated aluminium before any weighbridge reading is taken.
2. Get at least three competing quotes on the same day. Scrap rates move daily with LME. Quotes taken 48 hours apart are not comparable. Call at least three CPCB-authorised dealers on the same morning and compare on a per-kg, ex-works basis.
3. Verify the buyer’s SPCB / CPCB authorisation. Ask for the registration or authorisation certificate number. For lead and battery scrap, check the CPCB battery waste EPR portal. Transacting with an unauthorised buyer is a regulatory risk your legal team will not thank you for.
4. Agree on tare weight and weighbridge certification upfront. Disputes over weight are the single most common cause of payment shortfalls. Use a certified weighbridge (BIS-stamped under the Legal Metrology Act, 2009) and retain the printed slip.
5. Insist on a GST-compliant purchase invoice with the correct HSN code. Your accounts team will need this for ITC claims and for BRSR documentation. HSN 7204 (ferrous scrap), HSN 7602 (aluminium scrap), HSN 7404 (copper scrap) — confirm the code before the invoice is raised.
6. Request a Certificate of Recycling or Destruction. Larger buyers and listed companies increasingly require this for BRSR Core disclosures and ESG audits. Any CPCB-authorised recycler should be able to provide one.
7. Record-keep for a minimum of three years. The CPCB recommends a 2–3 year record retention period for waste-related documents. For GST purposes, records must be maintained for six years under Section 36 of the CGST Act. Maintain weighbridge slips, invoices, certificates of recycling, and authorisation documents together in a single scrap disposal file.

BRSR Core and Scrap Documentation: Why Listed Companies Now Face Audit Risk

SEBI’s circular dated 12 July 2023 mandating BRSR Core disclosures for the top 150 listed companies (expanding to the top 250 from FY 2024-25) has quietly transformed scrap documentation from a plant-level afterthought into a board-level concern. BRSR Core requires third-party assurance on a set of key performance indicators including resource efficiency, waste management, and circular economy metrics. Scrap disposal volumes, rates, and the credentials of the disposal partner are all relevant data points for these disclosures.

Specifically, BRSR Principle 2 — on sustainable and safe products and processes — asks companies to disclose the percentage of waste recycled or reused. If a listed manufacturer generates 500 tonnes of metal scrap annually and cannot demonstrate that it was sold to an authorised recycler with a certificate of recycling, the assurance provider will qualify that disclosure. A qualified BRSR assurance note is a material ESG governance issue that sophisticated institutional investors now flag. The NITI Aayog’s circular economy roadmap and SEBI’s sustainability framework are converging to make scrap disposal audit trails a non-negotiable.

The practical implication: procurement and sustainability teams at listed companies should treat scrap disposal contracts the same way they treat vendor due diligence — with documented authorisation checks, rate benchmarking, and certificate retention. This is not future-proofing; it is current compliance. Explore our comprehensive scrap buying programme to see how we support BRSR-grade documentation at every transaction stage.

Frequently Asked Questions

What is the current steel scrap price per kg in India in 2026?

MS (mild steel) shredded scrap traded in the ₹30–₹35/kg range at Mumbai and Pune yards in Q1 2026. HMS 1&2 grades fetched ₹33–₹38/kg in the same period, with Mandi Gobindgarh (Punjab) serving as the national price reference. Rates shift weekly with LME steel futures and domestic induction furnace demand — always obtain same-day quotes from at least three buyers before committing to a transaction.

What regulations apply when I sell scrap metal in India?

For general ferrous and non-ferrous scrap, GST compliance under the CGST Act 2017 is the primary obligation — correct HSN codes and genuine invoicing are mandatory. If your scrap includes battery plates or paint-contaminated steel, the Hazardous and Other Wastes (Management & Transboundary Movement) Rules, 2016 apply, requiring SPCB authorisation for both generator and buyer. Battery scrap specifically falls under the Battery Waste Management Rules, 2022, which require disposal through EPR-registered recyclers only.

Does importing scrap affect domestic copper scrap rates in India?

Yes, significantly. Copper scrap imports enter India at a 2.5% basic customs duty (Budget 2025-26 rate) under HSN 7404. When global copper scrap supply is abundant and the rupee is strong, imported material can undercut domestic scrap rates by ₹20–₹40/kg, pressuring local sellers. When the rupee depreciates or global supply tightens, the landed cost of imported scrap rises and domestic sellers benefit. Monitor LME copper cash prices and the USD/INR rate together for a realistic view of near-term copper scrap rates in India.

What documents should I keep after selling industrial scrap?

Retain the GST purchase invoice (with correct HSN code), the certified weighbridge slip, the buyer’s SPCB/CPCB authorisation certificate copy, and the certificate of recycling or destruction. Under Section 36 of the CGST Act, GST records must be kept for six years. For BRSR Core disclosures under SEBI’s circular dated 12 July 2023, these documents form the evidence base for your waste recycling KPIs — keep them in a centralised, auditable file.

How do I find an authorised scrap buyer in India?

State Pollution Control Boards maintain registers of SPCB-authorised waste dealers and recyclers. The CPCB’s hazardous waste portal lists nationally authorised facilities. For battery scrap specifically, the CPCB battery waste EPR portal identifies registered recyclers. Alternatively, government auction platforms such as MSTC Ltd run transparent, price-discovered scrap auctions for PSU and government-generated scrap. For private sector volumes, engaging a national recycler like The National Recycling Corporation provides a single point of contact with verified authorisation credentials across multiple states.

Work With The National Recycling Corporation

The National Recycling Corporation operates pan-India scrap collection, recycling, and documentation services for manufacturing plants, engineering firms, EPC contractors, and listed corporates who need more than just a weighbridge price. Our metal scrap services cover the full range — ferrous (MS, HMS, stainless steel) and non-ferrous (copper, aluminium, brass, lead) — with pricing indexed to LME benchmarks so you are not negotiating in the dark.

Every transaction comes with a GST-compliant purchase invoice at the correct HSN classification, a certified weighbridge slip, and a certificate of recycling accepted by ESG auditors and BRSR Core assurance providers. For Maharashtra-based clients, our Thane and Mumbai scrap collection operations can schedule same-week pickups for lots above 500 kg. We also handle mixed industrial waste streams — if your facility generates e-waste alongside metal scrap, our team can co-ordinate compliant disposal under a single service agreement through our full-service industrial waste dealer operations.

Our compliance documentation meets the standard required for BRSR Core disclosures, SEBI-mandated sustainability reporting, and routine SPCB inspections. If you are a listed company, an EPC contractor, or a plant manager who needs clean paperwork alongside a fair rate, contact us today for a no-obligation quote.

• Pan-India doorstep pickup for lots above 500 kg — ferrous and non-ferrous
• LME-indexed pricing for copper, aluminium, brass, and lead scrap
• GST-compliant invoicing with correct HSN codes (7204, 7404, 7602, and more)
• Certificates of recycling and destruction for BRSR Core and ESG audits
• Disposal through CPCB-authorised and SPCB-registered recycling partners
• Dedicated account support for high-volume or multi-site industrial clients

Sources and References

• Ministry of Steel, Government of India — National Steel Policy and scrap demand projections
• Central Pollution Control Board — Hazardous and Other Wastes (Management & Transboundary Movement) Rules, 2016
• Central Pollution Control Board — Authorised recyclers and waste management portal
• Ministry of Environment, Forest and Climate Change — Environment (Protection) Act, 1986 and subsidiary rules
• NITI Aayog — Circular Economy roadmap for India
• GST Council / GSTN Portal — HSN classification for scrap metals (7204, 7404, 7602)
• London Metal Exchange — Daily settlement prices for copper, aluminium and lead
• MSTC Ltd — Government-run scrap and surplus asset auctions