India’s ferrous scrap market stalls as Middle East war inflates import costs

The Indian ferrous scrap market is currently experiencing a period of sluggishness as the ongoing Middle East war has made imports significantly costlier, according to S&P Global Commodity Insights. Indian buyers are being outbid by competitors in Turkey, Pakistan and Bangladesh despite domestic scrap prices reaching their highest levels since April 2025. The conflict has disrupted supply chains and inflated logistical expenses, with transporters reportedly increasing quotes by 40% and barge rates rising sharply. Beyond scrap, the broader ferrous sector, including iron ore and metallurgical coal, is grappling with geopolitical volatility and a transition toward decarbonisation. While India’s circular economy goals put a spotlight on ferrous scrap, high landed costs and shipping disruptions via the Red Sea are squeezing margins for steelmakers. Experts suggest that unless regional tensions ease, the high cost of raw materials and energy will continue to pose a significant challenge to the industry’s growth and stability, according to a report.

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