India stands at a critical juncture in its journey toward steel sector decarbonisation. As the world’s second-largest steel producer with a significant carbon footprint, the country faces the dual challenge of meeting growing steel demand while simultaneously reducing emissions from the industry.
We set out to explore the availability of scrap steel from India’s ship breaking industry, partnering with the Climate Group and PwC India to perform this research. However, the research quickly revealed that ship recycling contributes minimally to scrap steel in India, offering limited supply for use in Induction Furnaces (IFs) and Electric Arc Furnaces (EAFs).
While ship recycling is often viewed as a potential source of high-quality scrap steel, this study revealed a more nuanced reality about its role in India’s industrial ecosystem. We discovered that about 75% of the scrap steel recovered from the ship breaking and recycling industry in India is actively upcycled and reused. Leaving less than 25% of scrap steel available for remelting and secondary steel making.
Highlights from the report
75%
75% of recovered steel is being upcycled, leaving little behind to be remelted or used in secondary steelmaking.
25%
Less than 25% of steel recovered from ship recycling can be used as scrap in secondary steelmaking.
19.8 MT CO2
Direct reuse of recovered scrap could help avoid up to 19.8 million tonnes of CO2 emissions annually by 2040 by avoiding the energy intensive remelting process.
The role of ship recycling in a sustainable steel industry
While ship recycling may not be the primary solution for India’s scrap steel needs, it represents an important component of a sustainable steel ecosystem. Its value lies not just in scrap generation, but in supporting a circular economy approach to steel use and reuse.
This research provides essential insights for policymakers, industry stakeholders and sustainability professionals working to optimise India’s ship recycling industry within the broader steel sector.
Explore these insights, recommendations and more in the report linked below.
Explore the complete report!
Discover deeper insights into India’s ship breaking and recycling industry, as well as key recommendations for stakeholders and policymakers in this report.
