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What’s Auto Shredding?
Scrapping large household items and cars is done by grinding the parts into small pieces using a hammer mill. A combination of ferrous material and non-ferrous metals (e.g., A combination of ferrous material, non-ferrous metal (e.g., copper) and shredding scrap resulted in the shredding vehicles (ASR). ASR can be divided into glass, fabric, rubber, and liquids for vehicles, plastics, and soil. ASR is often divided into dust and shredder into small amounts. These materials are sometimes called ‘Car-fluff’.
India, the world’s largest economy, took a long time to get on the market, despite the fact that different economies rely solely upon recycled car scrap. Scrap production is a lucrative industry that makes a lot of money from car recycling. However, it also has the added benefit of being sustainable in the environment by taking old polluting vehicles off the road. It is evident that India is keen to reduce air pollution and protect the environment, even though there may be some regulations.
Import of Scrap in India Overview
India’s steel demand is growing at 60.6 kg per person, compared to 400 kg per capita in other developing countries. Steel is essential for various infrastructure projects in urban and rural areas, both public and private. Indian steel industry contributes 50% of secondary steel.
India’s demand for steel scrap is approximately 16-18 mnt per annum. This is because ferrous scrap is a major raw material for secondary steel production units. India imports about 1/3 of this content. India’s scrap imports have been steadily increasing over the past few years. India’s FY16 scrap supplies stood at 6.2 million tonnes, an increase of 12.7% from FY15’s 5.5 million tons.
Raw material needs will increase as the Make in India project is expected to have a 300 mnt steel production capacity. Indian scrap producers would be in a better position if they were to include auto-shredding scrap. This is considering India’s current demand for scrap. Recent reports indicate that India received its 18th bulk shipment of scrap in 2016. The demand for raw materials is steadily increasing.
Scrap Metal Recycling Opportunities:
With the exception of precious metals like iron, steel, and copper, as well as brass, aluminum, alloy, nickel, bronze, and many other metals, waste metals can be any metal. These materials are often used in multiple applications such as making utensils and frames. However, they are left unutilized as waste. This metal waste is extremely beneficial and comes in large quantities. The returns that metal recycling offers are far more popular than any other type of recycling.
Before you start a business, you need to think about what you are going to recycle. It is important to conduct a viability study to find out what it’s like to be in this industry. This business has many benefits and drawbacks, as well as certain problems. It is important to understand these issues. This is a brief, but a comprehensive business strategy for metal recycling.
What are the requirements to start a business in recycling?
Building a recycling plant. After deciding on the type of metal and its level, you will need a factory. You will need a large area to build the facility, stock metal, machines, and finish goods. You will need a warehouse-like space to recycle metal.
Infrastructure: You need to have a secure area for computers to operate. You will need a location where your products can be brought, and a place where they can be separated, cleaned, and disinfected. A vented room is required to suit a typical factory layout. You will need to create the infrastructure necessary for security and compliance with the factory’s requirements.
Metal Scrap – Join scrap pickers, scrap sellers, landowners, and others to get the amount of metal scrap you need. Independent scrap laborers can provide you with scrap at a much lower rate than regular scrap dealers. Wholesalers of metal waste are a good option if the demand is great.
Equipment You need all the necessary recycling equipment such as tanks and compressors, grinders. You will be safer purchasing new equipment, as modern equipment is more efficient than traditional equipment.
Involvement of Private Companies
While MSTC’s recent change is positive, it may not be the best option to route all scrap into MSTC alone. Promoting private sector involvement is essential. Combining competition-based public and private sector employees would prove more efficient.
In the end, India’s automotive recycling industry is a great opportunity for scrap production despite all its challenges and commitments. Scrap could be used in steelmaking, which would create the steel cycle economy. India, a developing country, wants to be able to tap into these productive, renewable industries for the long term.
India’s Auto Shredding Kickstart-MSTC and Mahindra Intertrade JV
The newly drafted MoU combines the efforts of MSTC Limited, a Mini Ratna Category I PSU under the administrative jurisdiction of Mahindra Intertrade Limited, and the Ministry of Steel to establish India’s first auto-shredding factory.
This plant will be the first to build such units in a series. India’s entry into the car shredding industry is also being done in the Make in India initiative.
Is car recycling possible in India?
The world’s largest and most mature auto-recycling industry is made up of the US, Europe, China, and China. These nations have been dismantling old cars since the 1970s, just like the US. These industries are primarily focused on waste, and auto recycling is the reason for their existence.
Vehicle recycling in the USA dates back to the 1970s. In Europe, Japan, and Europe, recycling began in the 2000s. China followed in 2012. The total industry value of scrapping cars is approximately 30+ million vehicles and produces about 27 million tonnes of waste.
Vehicle Recycling in India
India is the third largest steelmaker in the world, so there are huge opportunities for auto-recycling. India’s auto recycling program will have many benefits for the country, including fuel savings and increased employment in the automotive industry.
25% (7 million cars) of the vehicles that are expected to be scrapped will produce approximately USD 2.9 billion in revenue (analogous to INR190 billion). These statistics will continue to increase over time.
A car weighs 1,400-1,600 kg on average. It is composed of 65-70% scrap steel, 7-8% aluminum scrap, and 15-20% rubber or plastic scrap after recycling. At current scrap rates (USD 382-455), a recycled car can earn between INR 30.000 and 35.000.
It can produce approximately 6 million tonnes (mnt), of waste. This includes 150,000 mt copper scrap and 0.8 mt aluminum scrap. Plastic and rubber scrap can also be produced. The future is expected to see statistics rise.
