Scrap Insight
30 Mar2013
MSTC plans to set up first Auto Shredding Plant in India Shredded scrap is regarded as important input material for the secondary steel industry. Metal Scrap Trade Corporation Limited (MSTC) is preparing to set up India’s first of its kind Auto Shredding Plant for the production of ferrous and non-ferrous shredded scrap. Motive behind setting up the plant:
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In India Construction and automobile sector attracts the major steel requirement
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But the country lacks organised auto-grade scrap shredding technologies for processing of metal scrap which results in poor yield as compared to international standards.
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In India secondary steel producers make use of shredded scrap for production of steel by the Electric Arc Furnace method or the Induction Furnace method. Up till now Scrap goods which contain steel can be recycled through these methods.
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Hence, MSTC plans to derive commercial and economic value through this pilot project worth Rs 120 Crore.
To execute the plan, MSTC is approaching by following preparations:•
MSTC invites Expression of Interest (EOI) from interested parties for Supply of raw materials in bulk on a regular basis and Joint venture
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The plant will processes End of Life Vehicles (ELVs) and other White Goods for scrap production in an eco-friendly manner
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The output of the plant will be considered as the raw material for secondary steel production
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Proposed capacity of the main Shredding Plant is expected to be 40 tons per hour (TPH)
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Gujarat is selected as the set up site for the plant with varied raw material (ELV & White Goods) collection centers from the border of Ahmadabad, Mumbai, Kolhapur, Indore and Jaipur.
Flow Chart to understand Auto shredding process: Iron
Automobiles\ white goods (Raw Materials)
Recycling Process and separation
Copper
Other metals
Monthly Avg. Prices Comparision Month Grade Dec'12 Jan'13 Feb'13 Mar'13 Domestic Scrap* HMS 1&2 22,300 22,800 22600 22500 Imported Scrap** HMS 1&2 393 400 403 403 Sponge Iron*** 75FeM 20,300 20,200 20,000 20,300 INR/USD 54.62 54.32 53.8 54.28 *-Ex Mumbai,basic prices (INR/t) **-CNF Mumbai (US$/t) ***-Delivered Mumbai,incld. Freight. CST &Excise Extra
Surabhi Singh Analyst surabhi@steelmint.com +91 9575100530