Introduction
Scrap Metal is the recyclable leftover scrap from construction sites, industrial sites, homes, etc. The scrap metal business plays an important role in the sustainable development and conservation of the environment. The increase in searches like scrap metal near me indicates a positive impact and the buyer interest in recycling and trading scrap metal, which can be a good opportunity for traders to latch on to.
What is the global market demand for scrap metal?
The global scrap metal recycling market is estimated at USD 318.85 billion in 2025 and is further anticipated to reach USD 631.72 billion by 2034 with a CAGR of 7.90%. The scrap metal industry is staying ahead of the market and is constantly growing. This growth shows a positive light towards business expansion or profits for exporters.
How can metal scrap be a profitable business?
Scrap metal can be a profitable business due to multiple factors:
- High Demand: Many industries, like the construction and automotive industries, require large quantities of scrap metal.
- Automotive: It can be a crucial material for producing steel and other parts used in vehicles.
- Construction: It is a sustainable way for construction sites to reduce greenhouse gas emissions and reduce reliance on virgin raw materials. This can also reduce the cost instead of buying new material.
- Profit: The profit margin for acquiring metal scrap is high, and can range between 15-30%. Both ferrous and non-ferrous metal has their demand and value, influencing the scrap metal price per kg.
- Sustainable Impact: Reusing and recycling create a better impact on the environment than using virgin raw materials.
How to find buyers of Scrap Metal?
With the onset of the digital era and artificial intelligence, it has become all to more easier to find buyers of metal scrap. Metal scrap is a booming industry and has huge demand in various industries, as we discussed earlier. There are many B2B marketplaces, networking events, trade shows or data directories to find scrap metal buyers.
What are the latest trends in the scrap metal industry?
The trends in the scrap metal industry are evolving, and it is essential to stay up to date with these trends:
- Rising demand for scrap metal: The recent trend and shift towards sustainability and environmental awareness are pushing businesses and governments to adapt methods involving reusing and recycling. Thus, influencing the demand for recycled materials, like metal scrap.
- Technological Advancements: Innovations such as artificial intelligence-driven automated sorting systems, advanced metal analysis techniques like laser-induced breakdown spectroscopy (LIBS) and X-ray fluorescence (XRF), and the integration of robotics are enhancing efficiency, accuracy, and safety in recycling processes.
- Focus on E-Waste Recycling: Electronic waste is growing rapidly, and it contains metals like copper, platinum, silver, etc. Facilities/businesses are focusing on extracting the metals from e-waste.
- Focus on sustainability: Industries are adopting systems and mechanisms to reduce or minimize environmental impact; therefore, recycled metal scrap plays a pivotal role in helping these industries.
Conclusion
The scrap metal business offers significant opportunities for profitability and environmental impact. Staying informed about scrap metal prices, understanding the types of metals, and adhering to regulatory requirements are essential for success in this industry.
Frequently Asked Questions (FAQs)
1. What are the latest scrap metal prices per kg in India?
General scrap metal prices are:
- Iron Scrap: ?28-?38 per kg
- Steel Scrap (SS 304): ?85-?95 per kg
- Aluminium Scrap: ?50 per kg
- Brass Scrap: ?400 per kg
- Copper Scrap: ?560 per kg
2. What is the price of 1 kg of scrap iron in India today?
The price of iron is between Rs. 28-38 per kg.
3. What is the HSN code for metal scrap?
The HSN code for metal scrap is 7204, and the detailed breakdown is:
- Cast iron: 720410
- Stainless steel: 720421
- Alloy steel: 720429
- Ferrous waste: 720449
4. What is the GST/TDS on metal scrap?
As per Notification No. 25/2024-Central Tax dated October 9, 2024, a 2% TDS is applicable on metal scrap transactions exceeding ?2.5 lakh between registered businesses. This is split as CGST 1% and SGST 1% for intra-state supplies, or IGST 2% for inter-state supplies.
