Melting scrap is the main raw material for induction and electric arc furnaces, so its price moves every day with steel demand. A scrap rate is only meaningful once you know the grade, the deductions and who pays the GST. This page explains how scrap is priced and traded in India.
| Grade | What it is |
|---|---|
| HMS 1 | Heavy melting scrap - thick, clean pieces (generally 6 mm and above), cut to furnace size |
| HMS 2 | Lighter and thinner heavy scrap, may include some coated material |
| HMS 1&2 (80:20 etc.) | A mixed lot sold to an agreed ratio |
| Shredded scrap | Scrap passed through a shredder - dense, clean, easy to charge |
| Turnings and borings | Machining chips - priced lower because of oil and oxidation losses |
| CRC / bundles | New production scrap from sheet work, pressed into bundles |
| Rerollable scrap | Plates, rails and sections that can be re-rolled instead of melted |
Grade names vary between buyers. Write the size limits, allowed contamination and moisture into the inquiry instead of relying on a name.
Iron and steel scrap (HSN 7204) attracts 18% GST. Two rules matter in practice:
These rules change from time to time - confirm with your tax adviser before you invoice.
On Indian Steel Portal a seller can put a scrap lot up for a forward auction: describe the grade, approximate quantity, location and photos, set a closing time, and verified buyers bid upwards. The highest bid (H1) wins, and the deal note records weighment, deductions and payment terms. Buyers who need a regular supply can do the opposite and float a reverse auction.
Register to buy or sell scrap - freeMelting scrap categoryScrap is priced in rupees per tonne for a stated grade such as HMS 1&2, after agreed deductions, ex-yard or delivered. Rates move daily and differ by city, so the reliable number is the one buyers bid on your actual lot.
HMS means heavy melting scrap. HMS 1 is thicker, cleaner material; HMS 2 is lighter and thinner. Many lots are sold as a mix such as 80:20.
Iron and steel scrap falls under HSN 7204 at 18% GST. When a registered buyer purchases from an unregistered seller, the buyer pays the GST under reverse charge (from 10 October 2024).
Yes, where both are registered: the buyer deducts 2% GST TDS on metal scrap supplies above Rs 2.5 lakh in a contract. Check the current rules with your tax adviser.
Put the lot up for a forward auction on Indian Steel Portal. Verified buyers bid upwards until the closing time and the highest bid wins.
Last updated 8 October 2026. This page explains how prices are formed; it does not publish a rate. Live rates come only from quotes on the portal.
