The Indian government has just made a significant move that metal traders and recyclers cannot afford to ignore. As part of its 2025-26 Union Budget, India has removed import duties on several forms of nonferrous scrap, including lead, zinc, copper, brass, and lithium battery scrap. This policy shift presents a major opportunity for US exporters looking to offset trade disruptions with other key markets, and for Indian importers and end-users looking to set up a steady supply of recycled material.

For years, the Material Recycling Association of India (MRAI) has pushed for lower levies on metal scrap, arguing that recycled metals are a critical raw material for India’s industrial sector. Their efforts have paid off. India’s decision to eliminate these duties positions the country as an increasingly attractive destination for North American scrap metal.

Why This Matters for US Metal Recyclers

The timing of India’s move is crucial. The global metals trade has been in flux over the past week, due to mounting trade tensions.

• President Trump put a 10% tariff on Chinese imports, and has proposed a 25% tariff on Canada and Mexico which would significantly impact ferrous and non-ferrous supply chains
  
  

• China has retaliated with continued export controls on Tungsten, Molybdenum, Bismuth, Tellurium, and Indium, key metals for critical sectors in the US

This volatile environment means that US recyclers and traders must look for alternative markets to maintain profitability. With India removing barriers to nonferrous scrap imports, it provides a powerful incentive for US exporters to shift their focus toward one of the world’s fastest-growing industrial economies.

What Should Metal Traders Do Now?

1. Capitalize on India’s Demand: India’s growing industrial sector is hungry for raw materials. The removal of duties on copper, lead, zinc, brass, and lithium-ion battery scrap makes it easier than ever to ship US material into the Indian market.
   
   

2. Monitor the Aluminum Scrap Situation: While duties on other nonferrous metals have been removed, aluminum scrap still carries a 2.5% import levy. The MRAI continues to push for its removal, so exporters should stay informed about potential policy changes.
   
   

3. Mitigate Risks with Hedging: Trade policies can shift overnight, as recent tariff battles have shown. US metal traders should hedge their price risk to ensure business continuity and stability. Market volatility can create sudden price swings, and a smart hedging strategy will help protect profits and cash flow.
   
   

4. Move Fast Before Policies Shift Again: India's current stance on nonferrous scrap imports is favorable, but policy landscapes can change. Exporters should act quickly to secure contracts and establish reliable trade routes with Indian buyers.

Pillar: Helping Traders Navigate Uncertainty

At Pillar, we understand the risks involved in global metals trading. Our automated hedging solutions have helped recyclers and exporters lock in profits and mitigate exposure to price volatility, ensuring profitable business continuity in a “new-normal” of volatility. With markets shifting rapidly, ensuring financial stability through smart risk management is more critical than ever.

India’s policy change is an opportunity - but only for those who move swiftly. If you're a US exporter looking to enter or expand in the Indian market, now is the time to act.

For tailored hedging strategies and more trade insights, get in touch with Pillar today.