India Warned: Aluminium Scrap Dumping Threatens Economy

The Aluminium Association of India (AAI) has issued a strong appeal to the Ministries of Finance and Mines, urging them to prevent India from being inundated with low-grade aluminium scrap. The association highlighted aluminium's evolving role as a strategic future-facing material crucial for key industries such as power, transport, defense, and renewable energy.

AAI expressed concerns that unchecked scrap imports could negatively impact product quality, consumer safety, and India's manufacturing competitiveness. They are advocating for immediate fiscal measures, including maintaining a basic customs duty of 2.5% on aluminium scrap. This measure would remain in effect until the government finalizes pending BIS scrap quality standards and implements grade-wise HSN codes for better classification.

The association noted that global economies are implementing stricter trade policies, including tariffs and non-tariff barriers, to protect their own aluminium value chains. This trend is reportedly leading to a global surplus of low-quality aluminium scrap, which is then being directed towards markets like India. The absence of a notified scrap quality standard in India exacerbates this risk, potentially making it an open market for substandard materials.