RESEARCH PROJECT REPORT ON FERROUS STEEL

SCRAP DEMAND IN FOUNDARIES

Introduction
Iron and steel scrap, or ferrous scrap, comes many consumer products like
automobiles and household appliances to industrial structures and equipment such as
buildings, railroads, trains, bridges, ships, and farming equipment.
Ferrous scrap is the most recycled material in the world. However, the coronavirus
outbreak has left the Indian automotive industry in distress, with automakers seeking
temporary tax cuts on cars, trucks and motorbikes as well as incentives to scrap old
vehicles. India’s steel demand likely to contract 20% in 2020 amid slowdown.
Background: The Foundry Market in India
 Casting production in India reached a value of 11 Mn tonnes in 2018, and is
expected to expand at a compound annual growth rate (CAGR) of ~12.7% from
2018 until 2023. The automobile sector consumes around 40% of castings
produced in India.
 The various types of castings which are produced are ferrous,non
ferrous,Aluminium Alloy, graded cast iron,ductile iron,Steel etc 
 The major foundry clusters are located in Batala, Jalandhar, Ludhiana, Agra,
Pune, Kolhapur, Sholapur, Rajkot, Mumbai, Ahmedabad, Belgaum,
Coimbatore, and Chennai, among other Indian cities. Each of these foundry
units caters to some specific end-use market.
 There are approx 4500 units out of which 80% can be classified as Small Scale
units & 10% each as Medium & Large Scale units.Approx 500 units are having
International Quality Accreditation

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Executive Summary
Resource Efficiency w.r.t steel scrap processing and by-products development based
on slag in India would require significant innovating efforts ranging from the adoption
of the state of the art technologies and equipment, logistic support, new business
models etc. This cannot be achieved by incremental evolution within the existing
systems. It will require rather holistic and possibly radical change of the existing
production and consumption systems. This may require a coherent policy framework
addressing issues like financing, capacity building, supply chain management, logistic
etc.
Steel scrap is a recyclable material left- over from steel manufacture or fabrication or
at end of life of the product. Recycling is the process of converting such material into
reusable new material. Steel scrap is essentially of three types: ▪ home/in-house scrap
which is generated inside the steel plant and recycled in steelmaking, Humans are
using technology in ways that are affecting nature adversely. The cost of doing so is
heavy. ▪ new scrap or prompt scrap which is generated during processing of steel
product at customers end, such as forming of auto components, machining of tools,
fabrication of structures/equipment, processing of white goods etc. These are collected
and used in the MSME or secondary sector. ▪ The third type is known as end of life
cycle scrap or obsolete scrap.

Objective of the Study

Forecast demand of ferrous steel scrap in Iron and steel foundries in North Indian
region for the year 2020-21.

Methodology
The study has been carried out based on an in-depth research of relevant published
information. The primary research covered major consumers as well as traders,
industry and trade associations and other industry experts in various segments and
various regions. Information on foreign trade, etc. has been based on available
published information. Desk research covered available published information in the
form of company annual reports, industry and trade journals, Government publications
and Internet search and in-house documentation available with the consultants. Data
collected through desk research and field survey has been collated and analysed. This
formed the basis of the findings of the study.

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FOR CALCULATING DEMAND OF FERROUS SCRAP IN IRON AND
STEEL FOUNDARY IN NORTH REGION OF INDIA

In the above table, “demand” depicts the Consumption of Ferrous Scrap in North
region in India from 2009 to 2013 the data was given but for finding the demand of
consecutive years we need to calculate using an excel formula-
In addition, the Production of Ferrous scrap in
Foundry in India decreases by 20% due to COVID-19.
In order to calculate the actual demand of the year 2020, we have to deduct the 20%
decrease as per the current economy conditions (As the previous demand calculated
was based on Pre-COVID-19 basis)
Conclusively, Actual demand of Ferrous scrap in Foundries in North Indian
region for the year 2020 is 1341514 tons.

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AVAILABLE FERROUS SCRAP IN Foundries particularly in NORTH
REGION AS PER 2013-14 DATA = 5758 (thousand tonnes)

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The above two table reflects that Availability of ferrous scrap in North Region in
Foundaries for the year say, 2013-14 is 5758 ‘000 tonnes and the
demand/consumption is 1251‘000 tonnes. The difference between the availability and
consumption is merly of 4507’000 tonnes. This left over scrapis further recycled.

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 PROJECTED DEMAND OF NORTH REGION
YEAR (Thousand Tonnes)
2013-14 1251
2014-15 1326
2015-16 1406
2016-17 1490
2017-18 1580
2018-19 1674
2019-20 1775
2020-21 1881
2021-22 1994

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RECYCLING PROCESS
Metal recycling is a pyramid industry with many small companies at the bottom
feeding scrap to large multinationals at the top.
 Sorting: Because magnets attract steel, this metal can be easily separated from
other recyclables like paper in a recycling facility with magnetic belts.
Different kinds of steel do not need to be separated.
 Shredding: Shredders incorporate rotating magnetic drums to extract iron and
steel from the mixture of metals and other materials.
 Media separation: Further separation is achieved using electrical currents, high-
pressure air flows and liquid floating systems. Other processes may be
necessary in cases such as steel cans which have a protective layer of tin that
must be removed and recycled separately.
 Shearing: Hydraulic machinery capable of exerting enormous pressure is used
to cut thick heavy steel recovered from railways and ships. Other cutting
techniques, such as the use of gas and plasma arch, are sometimes employed.
 Baling: Iron and steel products are compacted into large blocks to facilitate
handling and transportation.

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RECOMENDATIONS
As ferrous scrap is high in demand but there are certain ways in which the proportion
of scrap can be increased if: -
1) Majority of companies are targeting in Mandi Gobindgarh area, so the market
share captured is much larger than other states in India with 76
companies(54%) settled in this region. Thus, the company should target more
dealers and customers in this area to get more accurate and large data about the
scrap as compared to other clusters.

9% Mandi
12% Gobindgarh
Ludhiana
54% Bhiwadi
25% Gaziabad, Kanpur
and
Muzaffarnagar

2) The company should focus more on building ferrous scrap quality as it

significantly affects the profitability of a furnace and should focus more on
building special warehouses.
3) If government policies, will allow to include all vehicles above 15 years of life
in the category of ELV from scrapping. This will actually open up a huge stock
of steel scrap to Indian secondary steel makers in the country.
4) The secondary steel producers in India comprise the EAFs and IFs (electric
furnace route) and together they contribute to the major chunk of Indian crude
steel production. Scrap recycling is ferrous material from discarded
automobiles, white goods and industrial and domestic items. It is also about
enriching the recovered ferrous material by getting rid of rust, soil and other
unwanted materials that cling on to the steel. The process of shredding and
shearing cleans up the steel scrap as well. It is a huge benefit that steel makers
look for with a discerning eye.
5) Lastly, systematically phasing out depreciated fuel-guzzling vehicles and
replacing them with modern fuel-efficient ones will reduce the government’s
spending on petroleum imports.

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CONCLUSION
The ferrous scrap found in Iron and Steel foundry is one of the highly demanded scrap
in India. The pandemic has some effect on the iron and steel industry market. This
report contains the calculation of demand for ferrous scrap in North region of India by
using excel sheet. This delineates that the demand was slightly affected by the
pandemic, before and after demand of scrap in foundries was depicted by a line chart.

REFERENCES
https://steel.gov.in/sites/default/files/MoS%20AR%20Eng.pdf

https://www.indiatoday.in/business/story/coronavirus-india-s-steel-demand-likely-to-contract-7-7-
in-2020-amid-slowdown-1668834-2020-04-20

https://www.bdsv.org/fileadmin/user_upload/180222-Ferrous-report-2017-V07.pdf

https://steel.gov.in/sites/default/files/MoS%20AR%20Eng.pdf

https://steel.gov.in/sites/default/files/Chapter%20II.pdf

https://www.innovateinsights.com/report/global-ferrous-metal-powder-market-2020-industry-
analysis/201483/

https://steel.gov.in/annual-reports

https://www.steel-360.com/stories/recycling/which-year-marks-worlds-highest-scrap-consumption-
ever

file:///C:/Users/manish/Downloads/JPC-Study%20on%20the%20Indian%20Scrap%20Market-Vol.
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http://www.ficci.in/stateCouncil.asp?stateid=1011

http://www.oecd.org/sti/ind/steel-market-developments-Q42018.pdf

https://www.tatasteel.com/media/9238/tata-steel-ir-2018-19-220619.pdf

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2023-Expected-Expand-CAGR

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