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Industry Iron Scrap Rate in India – Latest State-Wise Prices for 2025

Iron and steel scrap form the backbone of India’s recycling and secondary steel production industry. With rising construction activity, manufacturing expansion, and infrastructure development, the demand for recyclable iron scrap continues to grow every year. Scrap plays a key role in reducing production costs, lowering carbon emissions, and improving sustainability across industries.

In this detailed guide, we cover the latest iron scrap rate in India, including state-wise pricing for major categories such as HMS, Cast Iron, Steel Scrap, Stainless Steel 304 & 316, Scrap Rods, Plates, Pipes, Nails, and Cut Trim Scrap.

This article helps factories, builders, fabricators, contractors, warehouses, and recycling suppliers understand daily scrap fluctuations and regional variations. Prices mentioned are approximate market values across major Indian states.

National Average Iron Scrap Price in India (2025)

Below is a general table showing average per-kg scrap price in most cities:

Scrap Type Average Price (₹/Kg)
Iron Scrap (Mixed) ₹32 – ₹45
Steel Scrap ₹35 – ₹48
Cast Iron Scrap ₹38 – ₹52
HMS (Heavy Melting Scrap) ₹34 – ₹50
Stainless Steel Scrap (SS 304) ₹85 – ₹115
Stainless Steel Scrap (SS 316) ₹145 – ₹200
Scrap Iron Plates ₹36 – ₹50
Scrap Steel Rods / TMT Bars ₹40 – ₹58
MS Beam / Channel Scrap ₹38 – ₹55
MS Angle Scrap ₹36 – ₹52
MS Sheet Scrap (Thin/Thick) ₹34 – ₹48
Punching Scrap (MS Punch Pieces) ₹45 – ₹65
Scrap Nails (Iron) ₹25 – ₹40
Old Iron Pipes ₹35 – ₹48
Cut Iron / Steel Trim Pieces ₹45 – ₹65
Machine Body / Heavy Machinery Scrap ₹38 – ₹55
Engine Block Scrap ₹40 – ₹60
Vehicle Body / Auto Iron Scrap ₹32 – ₹45
Construction Demolition Iron Scrap ₹30 – ₹45

These values may vary by region due to transport cost, furnace demand, purity, and market availability.

State-Wise Iron Scrap Prices Across India (2025)

Scrap values differ across states due to industrial zones, bulk demand, foundries, and local recycling networks. The table below lists approximate prices for major state capitals.

State / Capital Iron Scrap Cast Iron HMS SS 304 SS 316
Maharashtra (Mumbai) ₹38 – ₹48 ₹40 – ₹55 ₹38 – ₹52 ₹95 – ₹120 ₹160 – ₹210
Delhi (New Delhi) ₹35 – ₹45 ₹38 – ₹52 ₹36 – ₹50 ₹90 – ₹115 ₹150 – ₹200
Tamil Nadu (Chennai) ₹34 – ₹44 ₹38 – ₹50 ₹35 – ₹48 ₹85 – ₹110 ₹145 – ₹195
Karnataka (Bengaluru) ₹33 – ₹45 ₹40 – ₹53 ₹36 – ₹49 ₹90 – ₹115 ₹150 – ₹200
Gujarat (Ahmedabad) ₹35 – ₹46 ₹39 – ₹55 ₹37 – ₹52 ₹92 – ₹118 ₹155 – ₹205
West Bengal (Kolkata) ₹32 – ₹43 ₹35 – ₹48 ₹34 – ₹47 ₹88 – ₹110 ₹145 – ₹190
Uttar Pradesh (Lucknow) ₹34 – ₹44 ₹36 – ₹50 ₹35 – ₹48 ₹85 – ₹110 ₹150 – ₹195
Punjab (Chandigarh) ₹36 – ₹48 ₹40 – ₹52 ₹38 – ₹50 ₹92 – ₹118 ₹155 – ₹200
Haryana (Chandigarh) ₹36 – ₹48 ₹40 – ₹52 ₹37 – ₹50 ₹90 – ₹115 ₹150 – ₹200
Kerala (Thiruvananthapuram) ₹32 – ₹42 ₹35 – ₹48 ₹33 – ₹46 ₹85 – ₹110 ₹145 – ₹190

Types of Industry Iron Scrap and Their Market Value

1. Iron Scrap (Mixed)

Includes old structures, sheets, offcuts, beams, machine scrap and rusted components. Commonly sold by fabricators & small industries. Average range ₹32–₹45.

2. Steel Scrap

Found in construction, manufacturing and heavy industries. Higher density and better melting value compared to regular iron. Rate: ₹35–₹48.

3. Cast Iron Scrap

Sourced from motors, machinery, engine blocks, industrial pump housings, and heavy tools. Demand remains strong due to foundry usage. Rate: ₹38–₹52.

4. HMS (Heavy Melting Scrap)

HMS1 & HMS2 are widely used categories for steel mills. High-density, high-recovery scrap used in furnaces. Rate varies between ₹34–₹50.

5. SS 304 Scrap

Contains nickel, chromium & iron. Used in food machinery, kitchen equipment, pipelines, fabrication units. Rate: ₹85–₹115.

6. SS 316 Scrap

More corrosion resistant with higher nickel content. Used in pharmaceuticals, chemical plants, marine equipment. Rate: ₹145–₹200.

7. Scrap Iron Plates

Includes machine plates, cut plates from fabrication yards, thick sheets. Common in workshops. Rate: ₹36–₹50.

8. Scrap Steel Rods

Cutting scrap from construction sites, TMT rods, broken bars. High demand due to purity. Rate: ₹40–₹55.

9. Scrap Nails (Iron)

Collected from packaging industries, demolition waste and furniture shops. Easy to recycle. Rate: ₹25–₹40.

10. Old Iron Pipes

Comes from plumbing, industrial pipelines, borewells, and construction sites. Rate: ₹35–₹48.

11. Cut Iron / Steel Trim Pieces

High-quality cutting leftovers from CNC machines, laser shops & fabrication units. Best melting yield. Rate: ₹45–₹65.

Additional Major Iron Scrap Categories in India

Apart from the commonly known iron and steel scrap items, the Indian industrial sector generates several other high-value scrap categories that significantly contribute to the recycling market. These items come from construction sites, manufacturing units, heavy machinery, automotive workshops, and demolition projects. Including these major iron scrap items in rate analysis helps industries, contractors, and scrap dealers understand the real market pricing and overall scrap value generated from operations.

MS Beam, Channel & Angle Scrap

MS Beams (I-Beam, H-Beam), Channels (C-Channel), and MS Angles are widely used in construction, industrial structures, and fabrication work. When old buildings or factory structures are dismantled, a large quantity of this material becomes available as scrap. These items contain strong, dense mild steel, which makes their scrap value slightly higher than mixed iron scrap. Since structural steel has predictable thickness and high purity, recyclers prefer it for producing high-quality recycled steel billets and rods.

MS Sheet & Plate Scrap

Factories and fabrication units generate a huge volume of MS sheet and plate scrap during cutting, trimming, and punching processes. Thin sheet scrap usually comes from appliance manufacturing, automotive body parts, and metal furniture production. Thick MS plates are recovered from heavy equipment, machine parts, and industrial fabrication works. Because these sheets have uniform thickness and low contamination, they fetch competitive scrap prices in the market.

Punching Scrap (MS Punch Pieces)

Punching scrap is one of the most valuable categories in iron scrap. It consists of small, dense pieces generated during industrial stamping and punching operations. Since these pieces are pure mild steel and free from dirt, rust, or mixed metal content, they are highly sought after by melting furnaces. Punch pieces have a higher weight density, which increases both price and demand in the recycling sector.

Machine Body & Heavy Machinery Scrap

Industrial machines, manufacturing equipment, and old factory installations contribute to one of the largest scrap categories in India. Machine body scrap is generally heavy, thick, and contains high-grade iron suitable for melting and recycling. Items like lathe machines, milling machines, compressors, and fabrication equipment become valuable scrap once they reach end-of-life. Due to high weight and purity, machinery scrap usually fetches a better price compared to household iron scrap.

Vehicle Body & Engine Block Scrap

Automobiles generate two major types of scrap: body shell scrap and engine block scrap. Vehicle body scrap includes steel frames, doors, hoods, and chassis portions. Engine block scrap contains cast iron or alloy components that have higher density and metal content. Since cast iron is more valuable than mixed iron, engine block scrap typically sells at a premium. With India’s rapidly growing vehicle recycling and scrappage policy, this category has become one of the fastest-growing iron scrap sources.

Construction Demolition Iron Scrap

During demolition of old buildings, bridges, and industrial structures, a significant amount of iron material becomes available as scrap. This includes rods, beams, pipes, grills, gates, and other structural components. Demolition scrap is usually mixed in nature, but after cleaning and sorting, it becomes an excellent source of recyclable steel. The increasing number of redevelopment projects across major cities has boosted the supply of demolition iron scrap in India.

Why Do Scrap Prices Vary Between States?

How Scrap Dealers Calculate Iron Scrap Pricing

Tips to Get the Best Iron Scrap Price in India

FAQ – Industry Iron Scrap Rate in India

1. What is the current price of iron scrap in India?
Iron scrap ranges between ₹32 – ₹45 per kg depending on the state and scrap quality.

2. Which scrap has the highest value?
Stainless steel scrap (SS 316) offers the highest return at ₹145 – ₹200 per kg.

3. Why are Mumbai and Gujarat prices higher?
Due to port access, dense industrial zones, and high furnace consumption.

4. What is the difference between HMS and mild steel scrap?
HMS is heavier, denser and offers higher melting recovery, making it more valuable.

5. Does rust reduce scrap value?
Yes. Rust decreases metal purity, weight quality and melting yield.

6. How often do scrap prices change?
Prices fluctuate daily based on global steel rates and domestic demand.

7. Is trimming scrap more valuable?
Yes. Trim scraps are clean, pure and offer higher furnace recovery.

8. Where can industries sell large scrap loads?
Directly to melting furnaces, recycling yards, authorized scrap dealers or scrap marketplaces.

Conclusion

Scrap iron plays a crucial role in India’s industrial recycling ecosystem. Prices vary across states depending on demand, logistics and scrap quality. Whether you’re dealing with HMS, cast iron, SS 304/316, steel rods, plates, pipes or trimming scrap, keeping track of daily market rates helps maximize returns. Selling sorted, clean and bulk scrap always ensures the best value.