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It is reported that in order to rapidly promote carbon emission reduction and ensure long-term raw material stability, NM600 steel Indian steel manufacturers are actively increasing the proportion of scrap steel use and simultaneously expanding direct reduced iron (DRI) production capacity.
The Indian government's newly released Greenhouse Gas Bulletin sets phased carbon intensity targets for 130 factories, with targets for 2025-26 and 2027-28. Each factory faces a clear emission reduction target, pushing companies to accelerate their carbon reduction efforts. Indian steel giant Tata Steel plans to increase its use of scrap steel in production to 10%. NM600 steel Under the framework of the environmental standards organization ResponsibleSteel, scrap steel from environmentally friendly sources can be included in carbon accounting.
As alternative technologies such as hydrogen injection and biochar are still in the experimental stage, scrap steel is currently the only emission reduction solution that can be promoted on a large scale.
To boost scrap self-sufficiency, Tata Steel is building a recycling plant in Uttar Pradesh, highlighting the need for upstream resource development. Leading international companies like Nucor control approximately 30–40% of scrap supply through their own plants. Integrated steel mills in India are expected to achieve a scrap self-sufficiency rate of 25–30%, while secondary mills may face supply challenges.
Over the past decade, India's scrap steel imports have declined, with an average annual drop of about 20%, while domestic steel demand has continued to rise. Currently, there is a scrap steel gap of about 10 million tons per year, so integrated steel mills have increased their reliance on direct reduced iron (DRI).
Last year, India's DRI production capacity increased from 42 million tons to 50 million tons, and some producers have increased the DRI content in their production to 40-50%. NM600 steel India's strategy of strengthening DRI production contrasts with countries such as Bangladesh, which are actively diversifying their scrap import sources, including sourcing from Japan, Singapore, Australia, and New Zealand.
The increase in India's DRI production capacity is primarily driven by India's abundant domestic iron ore resources. The development of new mining areas in Chandrapur and Gadchiroli, Maharashtra, has further reduced DRI production costs. Beyond economic benefits, this raw material strategy also reflects steelmakers' preference for sourcing local resources to enhance supply chain security.
This dual-track strategy represents a fundamental shift in mindset for Indian steelmakers: scrap steel remains central to the green steel transition, while DRI provides a crucial foundation for achieving stable, economical, and low-carbon production.
