Limitations of Steel Production Using Scarp Steel
Scrap steel collection
• No formal system for scrap
collection.
• Unorganised sector and highly
fragmented market.
• No social security/social status
for scrap collectors.
• Limited statutory compliances
• Limited traceability and
accountability of scrap.
• Limited adherence to policies
of waste management.
Scrap Processing
• No regularity framework.
• Value loss due to sub optimal
processing.
• No organized players.
• Low concern for quality. Limited
investment in equipment and
capacity building.
• Limited adherence to policies on
safe dismantling of obsolete goods.
• No infrastructure for safe disposal
of waste materials.
Steel Making
• Difficulty in land acquisition.
• High power consumption.
• Voluminous material thus
high cost of transportation.
• Inconsistent supply of quality
scarp steel.
• High dependence on imports
for good quality scraps.
• The steel produced is of low
quality and the industry is
highly polluting.
 Current process in scrap steel industry

Inefficient,
Date Logistics used is Minimal pre
Unorganised polluting
infrastructure for dated and leads processing of
Collection furnaces and bad
collection to loss of scrap scrap
quality of steel

Proposed process in scrap steel industry

Modern furnaces
Organized sector, Investments in Aggregated Proper pre
with new
make it the logistics with processing plants
technology for
respectable infrastructure modern vehicles for scrap steel
good quality