Arihant Singhi: India is heading towards 300 million tons
Arihant Singhi: The rise of Indian steel is the product of an integrated system from production to logistics
Arihant Singhi: India offers an important lesson for the Arab industry, and the Gulf is qualified to become a hub for scrap trading and processing
Arihant Singhi: Arab steel faces a strategic opportunity in the global scrap market
Arihant Singhi: Scrap is a strategic raw material in the steel industry
Arihant Singhi ..
Arihant Singhi
Chief Operating Officer and Founder of Aaasha Trading Limited, UK.
He is a prominent international metals trader with over 15 years of experience in ferrous and non-ferrous metals trading and international supply chains.
Interview by Amani Ibrahim
Arab Iron and Steel Union Media Center
India's crude steel production reached 164.9 million tons in 2025, with a target of 300 million tons in production capacity and 255 million tons in actual production by 2030-2031. These figures reflect the scale of transformation in the Indian steel industry and highlight its increasing needs for iron ore, scrap, direct reduced iron (DRI), and other metallic inputs.
Arihant Singhi, CEO and Founder of the British company Aaasha Trading Limited, which specializes in international ferrous metals trading and supply chains, with over 15 years of experience in metals trading and international markets, believes that India's rise is not solely linked to increased steel production capacities, but also to a huge domestic market, availability of iron ore, extensive investments in ports, roads, railways, and logistics, alongside the growing role of the private sector and technology.
Singhi points out that the expansion of Indian steel production, especially with the growth of electric arc furnaces, will maintain the importance of imported scrap in the coming years, given that domestic scrap generation cannot keep pace with demand growth. He emphasizes that the challenge will not be in the global availability of scrap, but rather in the availability of high-quality scrap, meeting specifications, quantities, and timing.
He believes that the Indian experience offers an important lesson for the Arab industry: building an integrated system around the steel industry, rather than just increasing production capacity. He asserts that Arab countries already possess the capital, infrastructure, and logistical capabilities that can be linked to recycling, manufacturing, and technology.
In this context, Singhi proposes an opportunity for Gulf countries to become a regional hub for trading and processing scrap and metallic inputs, leveraging their ports, logistical infrastructure, and strategic location between European, Asian, and African markets, alongside the growth in direct reduced iron capacities.
In his interview with the Arab Iron and Steel Union Media Center, Singhi discusses the future of the scrap market, the competitiveness of the Indian and British industries, raw material security, the role of artificial intelligence, the future relationship between scrap, direct reduced iron (DRI), and pig iron, as well as the key lessons the Arab industry can learn from India's experience.
India: A Rise Worth Studying
• India has become one of the fastest-growing steel producers in the world. What are the main factors behind this success?
India possesses an advantage that many countries lack: a huge domestic market that is growing in parallel with the expansion of steel production capacities. India produced approximately 164.9 million tons of crude steel in 2025, strengthening its position as the world's largest steel producer after China.
Infrastructure, construction, automotive, and manufacturing sectors support demand growth. The availability of domestic iron ore is also a key advantage.
Through my years of trading with India, I have also seen how the market has become more professional and quality-conscious, and this level of maturity will be important as India continues to expand.
Steel Requires an Integrated System
• What lessons can Arab countries learn from the development experience of the Indian steel industry?
One of the most important lessons is that developing the steel industry requires an integrated system, not just a steel plant.
India has invested in ports, roads, railways, logistics, and industrial infrastructure in parallel with increasing steel capacities, and has also encouraged large-scale private sector investment.
Arab countries already possess excellent infrastructure and capital. The opportunity lies in linking these assets with recycling, manufacturing, and technology.
If the region develops the entire value chain instead of focusing solely on steel production, it can create significantly greater long-term value.
Raw Material Security: A Priority for India
• How do you assess India's strategy for securing raw materials, especially iron ore and scrap?
India has a strong foundation thanks to its domestic iron ore resources. Scrap, however, is a different matter.
With the increase in steel production via electric arc furnaces, imported scrap will remain important, as domestic scrap generation will take time to catch up with demand.
India's long-term steel policy aims to reach a crude steel production capacity of 300 million tons and an actual production of 255 million tons by 2030-2031.
This volume requires a diverse basket of metallic inputs, including iron ore, domestic and imported scrap, direct reduced iron, and other metallic materials. Flexibility will be a key element.
Technology Enhances Indian Industry Competitiveness
• What role do digitalization, automation, and artificial intelligence play in improving the Indian steel industry?
India has been relatively quick to adopt technology, and I believe this will become an even greater advantage in the future.
Automation can improve productivity and quality consistency within the plant, while AI can support maintenance, quality control, and production planning.
On the commercial side, advanced digital systems can improve procurement, inventory management, and logistics operations.
However, technology remains a tool, and the companies that will benefit most are those that combine good technology with a human element that understands steel, raw materials, and the market.
Britain: Energy Challenges and Low-Carbon Transition
• The British steel industry faces significant challenges. What are the main factors affecting its competitiveness, and how can the sector recover?
The main challenges are energy costs, global competition, and the cost of transitioning to cleaner production.
The UK has good technical expertise and a mature scrap recycling industry, so there is a strong foundation to build upon.
The shift towards electric arc furnaces presents an opportunity, but the economic equation must be viable. If energy prices remain significantly higher than in competing markets, it will be difficult.
Britain needs a combination of competitive energy, supportive policies, and effective utilization of domestic scrap to maintain its competitiveness.
Green Transition Requires a Sustainable Economy
• How do you assess the UK's progress towards low-carbon steel production? Is the industry moving at the required pace?
The direction is correct, but the transition is not just about installing an electric arc furnace.
Competitive electricity, reliable scrap supplies and customers willing to back low-carbon steel are needed.
The UK has a significant advantage in having an established scrap collection and recycling industry, and the opportunity is to retain more value within the domestic steel chain.
If Britain can combine its recycling base with competitive energy and modern EAF technology then it has a realistic chance of building a stronger low-carbon steel sector.
Energy.. the main weak point
• What is the impact of high energy costs and environmental regulations on the competitiveness of the British steel industry?
Energy costs have been a major barrier for UK steel producers.
Steel is an energy-intensive industry and even a relatively small difference in the cost of electricity can have a significant impact on profit margins.
At the same time, producers are being asked to invest heavily in reducing emissions.
Environmental standards are essential, but the industry needs a level playing field with international producers. Therefore, the UK needs to strike a balance between its environmental ambitions and maintaining domestic steel production as an economically viable activity.
India and Britain.. two different experiences and mutual lessons
• Based on your experience in the Indian and British markets, how do you compare the strengths and challenges of each?
They are almost different markets in many aspects.
India has growth, scale, strong domestic demand, and increasing investments. The UK, on the other hand, has mature infrastructure, technical expertise, and a developed recycling sector, but faces higher operating costs and weaker growth.
India can benefit from British expertise in recycling, quality, and environmental standards, while Britain can benefit from India's ability to attract investment and build production capacities around domestic demand growth.
In fact, there is much that each market can learn from the other.
An opportunity for cooperation between Arabs, India, and Britain
• Do you see opportunities to enhance cooperation between the Arab steel industry and both India and the UK?
Certainly. And I believe the opportunities go far beyond simply buying and selling scrap.
India has the scale and growing demand for steel, while the UK has strong expertise in recycling and technical services. The Arab region possesses capital, logistics infrastructure, and growing capacities for steel production.
There is ample room for cooperation in scrap supply, recycling plants, technology, direct reduced iron (DRI), green steel, and logistics.
From a trader's perspective, the biggest opportunity lies in building long-term relationships between these markets, rather than treating them as separate trading markets.
This can contribute to building a stronger and more resilient steel industry value chain.
How do Arab countries benefit from local scrap?
• Firstly.. How can Arab countries better leverage their local scrap resources and reduce reliance on imports?
The first step is to build a more organized system for scrap collection and processing. There are quantities of scrap in the region, but not all of it is collected, sorted, and processed with the required efficiency.
Investing in balers, sorting equipment, and organized collection networks can make a big difference. I also encourage policies that make recycling an attractive economic activity.
GCC countries already have excellent ports and logistics infrastructure. If the region succeeds in developing the processing aspect, it can reduce its reliance on imports, while simultaneously building a stronger domestic metal recycling industry.
The Gulf.. a potential hub for scrap trade and processing
• How do you assess the future of the scrap trade in the Middle East and North Africa? And can the region become a major hub?
Yes, I believe it is possible. The region already has strong logistics infrastructure along with growing steel production capacities. Saudi Arabia, the UAE, and Oman are developing their steel and metals industries, while the Middle East is also becoming an important hub for direct reduced iron (DRI) production.
This mix is very important from a trade perspective. The region can connect supply and demand sources in Europe, Asia, and Africa. I see the GCC countries becoming increasingly important, not only as a market for scrap trade but also as a hub for processing and trading metallic inputs.
Artificial intelligence will not eliminate the role of the trader
• How can artificial intelligence and digital transformation improve the scrap industry?
AI can make operations faster and more transparent, especially in sorting, quality control, inventory management, and logistics.
However, I do not believe that technology will replace the trader. Scrap trading still relies heavily on relationships, and understanding the supplier, the steel mill's requirements, and market trends requires expertise.
What AI can offer is to provide the trader with better information and help them make decisions faster. In a volatile shipping market, improving visibility of shipments alone can make a significant trading difference.
Quality.. the biggest challenge for recycling companies
• What are the main challenges facing recycling companies in providing high-quality scrap that meets the requirements of modern steel mills?
I believe quality consistency is the biggest challenge. Mills have become more stringent regarding impurity levels, chemical composition, density, and recovery rates.
A shipment might look good commercially but can cause problems in the furnace if the quality is not consistent. At the same time, recycling companies face rising labor, energy, and processing costs.
From my experience, the cheapest supplier is not necessarily the best. A recycler who consistently adheres to agreed specifications will always have a greater ability to build a strong relationship with serious steel mills.
Trade policies are reshaping the scrap market
• To what extent do trade policies, tariffs, and export restrictions affect the global scrap market?
Their impact can be very immediate. We have seen markets change simply because a country adjusted its export policy or imposed a new tariff.
Governments are increasingly viewing scrap as a strategic raw material, especially as steel producers move towards reducing emissions. Measures like the Carbon Border Adjustment Mechanism (CBAM) are also changing how producers view carbon and supply chains.
I expect more government interventions, but the key factor is balance. Excessive restrictions can distort prices and reduce the incentive to collect and process scrap efficiently.
Scrap, DRI, and Pig Iron.. an integrated mix
• How do you see the future relationship between scrap and alternative metallic inputs like direct reduced iron and pig iron?
I see it as a relationship of integration, not direct competition. There is no single metallic input that can meet all the requirements of steel mills from both an economic and technical standpoint.
Scrap provides the recycled metallic component, while DRI and pig iron can help control chemical composition and residual element levels, especially when producing high-quality grades.
The Middle East is well-positioned in this regard with growing DRI production capacities, and ultimately, mills will determine the best metallic mix based on quality, availability, price, and carbon footprint.
Therefore, the question in the future will not be: scrap or DRI? It will be: what is the best mix?
Five trends the Arab producer should watch
• What are the most important trends that Arab steel producers should monitor in the coming years?
I believe there are five factors to watch closely: raw material security, energy costs, expansion in electric arc furnaces, emissions reduction, and logistics.
Steel mills can no longer look at the mill alone; they must look at the entire supply chain.
Where will the scrap come from? How much will shipping cost? How reliable is the supplier? What is the carbon cost?
These questions will increasingly influence purchasing decisions. Arab producers have significant geographical and energy advantages, but they, in turn, need strong strategies for raw materials and supply chains.
Resilience starts with diversifying supply sources
• What advice do you offer Arab steel mills to build more resilient and sustainable supply chains?
Do not build your supply chain based on the cheapest shipment, but on reliability.
Recent years have shown how quickly shipping costs, geopolitical factors, currency prices, and raw material availability can change. Therefore, I advise diversifying suppliers and sources of supply, maintaining relationships with reliable trading partners, and avoiding over-reliance on a single market.
In scrap trading, a long-term relationship can be far more valuable than saving a few dollars on a single shipment. When the market tightens, relationships and reliability become exceptionally valuable.
Scrap: From raw material to strategic asset
• The global steel industry is rapidly moving towards low-carbon production. How do you foresee the role of iron scrap evolving over the next decade?
Scrap will become more important than ever and will transform into a strategic raw material. The steel industry still relies heavily on the traditional blast furnace-basic oxygen furnace (BF-BOF) route, which accounts for about 70% of global production, but electric arc furnace (EAF) capacities are continuously increasing.
As this shift continues, steel mills will need reliable access to high-quality scrap. We are already seeing buyers paying more attention to consistency in quality, chemical composition, and impurity levels, not just the lowest price. In my estimation, high-quality scrap will increasingly be treated as a strategic raw material.
The problem is not a shortage of scrap, but a shortage of the right quality
• Do you believe current global scrap supplies will be sufficient to meet the growing demand as EAFs expand?
I do not anticipate a general shortage of scrap, but I do expect a decline in the availability of scrap with the required specifications and quality. Steel production capacities can be added in a relatively short period, while high-quality aged scrap takes decades to return to the market. This creates a structural challenge. As EAFs expand in India, the Middle East, and other regions, competition for high-quality scrap will increase.
In scrap trading, there is a difference between the availability of the material and the availability of the right grade in the required quantity and at the right time. It is precisely here that I expect real supply pressures to emerge.
