As India continues to expand steel capacity through induction furnaces (IF) and electric arc furnaces (EAF), the dependence on imported ferrous scrap has become a permanent feature of the industry rather than a cyclical requirement.
What is HMS Scrap?
HMS scrap refers to heavy ferrous scrap generated from demolished structures, industrial machinery, shipbreaking activities, and thick steel components removed from service. It is preferred by steelmakers due to its higher metallic yield, predictable melting behavior, and suitability for bulk furnace charging.
The most commonly traded HMS grades include:
HMS 1:
This grade consists of heavy steel scrap, generally with a minimum thickness of 6 mm. It must be free from galvanized material, excessive rust, oil contamination, rubber, plastic, and non-ferrous attachments. HMS 1 is valued for its cleanliness and higher recovery rate in the furnace.
HMS 2:
HMS 2 is a more mixed grade of heavy scrap. It may include painted or coated steel within controlled limits. While slightly lower in quality than HMS 1, it is widely accepted by Indian mills when specifications are clearly defined.
HMS 1&2 (80:20 or 70:30):
The most commonly imported blend into India. This combination offers an optimal balance between cost, melting efficiency, and furnace productivity. Most Indian buyers are well-accustomed to this blend and structure their procurement around it.
Why India Imports HMS Scrap
India’s steel growth is increasingly driven by induction and electric arc furnace routes, which rely heavily on ferrous scrap as a primary raw material. Domestic scrap generation remains fragmented and inconsistent due to informal collection systems and limited large-scale scrappage infrastructure.
To maintain continuous production and stable melt chemistry, Indian steelmakers depend on imported HMS scrap as a reliable and scalable input.
Why the USA and Europe Have Excess Scrap
Developed economies generate large volumes of surplus ferrous scrap due to ongoing demolition cycles, infrastructure renewal, high vehicle scrappage rates, and mature recycling systems. In many cases, scrap availability exceeds domestic steelmaking requirements, making exports a natural outlet.
For recyclers and yards in these regions, exporting HMS scrap allows better inventory rotation and monetization of accumulated material.
Key Supplying Regions
India regularly imports HMS scrap from:
- USA
- UK
- European Union countries
- UAE and selected Middle East hubs
Supply origins often shift based on freight economics, availability, and seasonal demand, but these regions remain the backbone of India’s HMS supply chain.
Challenges in HMS Scrap Trade
Despite strong demand, HMS trade is not without challenges. Common issues include specification disputes, documentation mismatches, lack of stuffing and loading visibility, and unreliable spot-based transactions. These factors can lead to delays, claims, and strained counterparty relationships.
Why Structured Trade Matters
A structured approach to HMS scrap trade reduces disputes, improves offtake reliability, and allows exporters to plan shipments with greater confidence. Clear specifications, transparent loading practices, and consistent buyer engagement make the Indian market more predictable and repeat-driven.
For exporters willing to approach India as a long-term destination rather than a one-off sale, HMS scrap offers sustained volume potential and stable demand dynamics.
Invitation to Exporters
We work with global HMS scrap exporters supplying HMS 1, HMS 2, and HMS 1&2 blends to the Indian market. Exporters seeking a consistent outlet for heavy melting scrap can explore structured supply arrangements aligned with Indian steelmakers’ requirements.
Handled correctly, HMS scrap exports to India are not just transactions—they are repeat industrial flows backed by one of the world’s most resilient steel demand bases.