JSW Steel has been scaling up scrap-based and circular steelmaking. What is driving this increase, and does India's scrap ecosystem have the capacity to support growing demand?  

 We have significantly increased our use of external scrap, reflecting our focus on resource efficiency, circularity, and progressively reducing the carbon intensity of steel production. Steel is inherently recyclable, and greater utilization of scrap enables the industry to recover valuable materials, reduce waste, and lower dependence on virgin raw materials.  

 India's scrap ecosystem has evolved considerably over the past decade, but significant opportunities remain to strengthen collection, segregation, processing and recycling infrastructure. As the country's steel demand continues to grow, a more organized and efficient scrap value chain will become increasingly important. We believe the long-term potential is substantial, particularly as India's stock of steel in buildings, infrastructure, vehicles and consumer products continues to expand and eventually reaches end-of-life.  

 To unlock this potential, industry, recyclers and policymakers will need to work together to improve collection systems, modernize processing facilities, strengthen quality standards, and enhance material traceability across the value chain. 

Is India ready for more scrap-based steelmaking?  

 India is certainly moving in that direction, but the transition will be gradual and shaped by the country's unique development pathway.  

 India is currently the world's second-largest steel producer, and domestic steel demand continues to grow rapidly. The Ministry of Steel has projected a substantial increase in scrap requirements as the industry expands production capacity and pursues lower-carbon pathways.  

 Unlike many mature economies, India is still building large amounts of infrastructure, housing and manufacturing capacity. As a result, a significant portion of the steel consumed today remains in use and has not yet entered the recycling stream. This means that while scrap availability will continue to increase over time, domestic supply needs to grow in parallel with expanding steel demand.  

 The key challenge is therefore not simply generating more scrap, but creating an efficient ecosystem for collection, dismantling, processing, sorting and quality assurance. Investments in modern recycling infrastructure, digital traceability and scientific material recovery will help ensure that scrap becomes an increasingly reliable and high-quality input for steelmaking.  

 At the same time, India's ferrous scrap imports reached approximately 11.8 million tonnes in 2023, highlighting the gap that still exists between domestic scrap generation and growing demand. 

JSW Steel is establishing scrap-processing facilities in Maharashtra and Tamil Nadu. What is the strategic thinking behind this investment?  

 Our investments in scrap-processing infrastructure reflect a long-term commitment to circularity, resource efficiency, and supply chain development.  

 As scrap utilization increases, quality, consistency, and traceability become increasingly important. Processing facilities can help improve segregation, material quality and operational efficiency across the recycling value chain. They also contribute to creating a more organised and transparent ecosystem by linking collection, processing, and consumption in a structured manner.  

 These investments should be viewed not merely as feedstock-related projects but as part of a broader effort to strengthen India's recycling infrastructure and support the future growth of low-carbon and resource-efficient steel production. 

How can the organized sector work with the informal ecosystem rather than operate separately from it?  

 The informal sector has played a vital role in India's recycling ecosystem for decades and remains an important contributor to material recovery. The objective should not be to replace this ecosystem, but to strengthen and integrate it through collaboration.  

 Organized industry can support better safety practices, skill development, access to modern processing infrastructure and improved material traceability. Partnerships and aggregation models can raise collection efficiency, material quality and environmental performance while creating better economic opportunities for existing participants. The Parliamentary Standing Committee has also highlighted the need to formalize informal scrap markets and organize collectors and dealers within a more structured ecosystem. 

Scrap is increasingly positioned as a key decarbonization lever. How significant is scrap in JSW's decarbonization pathway?  

 Scrap is undoubtedly one of the most important and readily available levers for reducing the carbon intensity of steel production. Greater use of recycled steel reduces demand for virgin raw materials and supports more resource-efficient production pathways. Industry estimates indicate that using one tonne of scrap in steelmaking can avoid approximately 1.5 tonnes of CO₂ emissions and reduce requirements for about 1.4 tonnes of iron ore, 0.74 tonnes of coal and 0.12 tonnes of limestone, although the actual benefits depend on the production route and energy mix.  

 However, there is no single solution to steel decarbonisation. Given India's projected growth in steel demand, both primary and secondary steelmaking routes will remain important for the foreseeable future. The sector's transition will therefore require a portfolio of solutions that includes increased scrap utilisation, renewable electricity, energy efficiency, process innovation, green hydrogen and other emerging low-carbon technologies.  

 At JSW, we view circularity and scrap utilisation as an important part of our broader decarbonisation strategy, complementing the other technology pathways required to achieve a low-carbon steel future. 

What are the biggest quality and traceability challenges in India's scrap market today?  

 The primary challenge is consistency. Scrap originates from multiple sources and can vary significantly in composition, contamination levels and material quality. 

 For steel producers, predictability is critical because quality variations can affect operational performance and final product quality. Reliable grading systems, better segregation practices and improved material traceability are therefore essential.  

 India has made significant progress in developing a more organized recycling ecosystem, but continued investment in advanced sorting technologies, modern processing facilities, quality certification mechanisms and digital tracking systems will further strengthen confidence in domestically processed scrap and support greater utilization across the industry. 

Can circularity keep pace with India's ambition to expand steel production while reducing emissions? 

 Yes, provided circularity is viewed as an integral part of industrial development rather than a parallel agenda. Steel is uniquely positioned within the circular economy because it can be recycled repeatedly without losing its inherent properties. Industry estimates place the global end-of-life recovery and recycling rate at around 85%, although rates vary across products and markets.  

 India has a unique opportunity to build circular economy principles into the next phase of industrial growth. This will require investments in recycling infrastructure, collection networks, logistics systems, data transparency, and modern processing capabilities. It will also require stronger collaboration among manufacturers, recyclers, policymakers and consumers.  

 Importantly, India's steel decarbonisation pathway will differ from that of many mature economies. While scrap will play an increasingly important role, the country will continue to require substantial primary steel production to support infrastructure development, urbanisation and economic growth. The objective is therefore not to choose between primary and secondary steelmaking, but to ensure that both become progressively more efficient, more circular and lower carbon.  

 I am optimistic that India can achieve this balance. By combining industrial growth with resource efficiency and innovation, we can strengthen competitiveness while advancing our sustainability objectives.