Since there is no loss of any metallic property in recycling, scrap processing protects the environment, conserves the bauxite mineral and provides huge rural women employment in segregation of metallic and non-metallic wastes. Hence, the government should encourage metal recycling and reduce the import duty on aluminium scrap to zero from the existing 2.5 per cent,” said Rohit Shah, managing director, Heena Metal, a recycling unit based here.
Units like his were helped by the surge in primary aluminium prices on the LME; this has risen since May by nearly 10 per cent to $2,238 a tonne. Over the past two years, these prices have jumped by around 50 per cent.
Aluminium recyclers import scrap at $1,500-1,600 a tonne. They incur another 10 per cent of expense on conversion. With they produce value added products, the margin could go up to 50 per cent.
“Secondary aluminium production is the process of recycling scrap into aluminum that can be used again—an environmentally sound process that is 95 per cent more energy-efficient than primary production. The recycled aluminium sector is highly fragmented, with around 10 medium sized players and 150-200 small ones, as it has low entry barriers and low capital costs,” said Sanjay Mehta, president, Metal Recycling Association of India.