The Metal Industry is primarily concerned with metallurgy and metalworking At first the metals are extracted from the metal-ores found in their natural state deep within the earth and then these ores are purified through a detailed procedure to obtain the metals in their pure form, these processes comprise metallurgy. Then the pure form of the metal so obtained is used to manufacture structures as well as different machines and parts of machines. The procedures which involve the manufacturing of machines and other useful items from the metals so obtained through the metallurgical processes constitute metalworking. The manufacturing of alloys is also carried out in the Metal Industry through the proportionate homogeneous mixing of two or more metallic elements (metals in the pure state). The alloys so formed are mainly manufactured in order to enhance the natural properties of the metals by combining them together. Steel is one of the most popular as well as useful alloys of iron, formed through the chemical combination of mainly iron and carbon. In addition, it may also contain other metals, as added to the combination in order to attain desired properties from the alloy.

India is today the second most populous country in the world. It is also an important country for the metal industry. The Six States with a highest concentration of Metal Industry were identified for the survey. They are Uttar Pradesh, Rajasthan, Maharashtra, Gujarat, Andhra Pradesh and Karnataka.

General Background about Metal Scrap Industry Throughout the ages, man has been recycling metals by melting and reusing them. Today, scrap recycling has become a multi –billion dollar worldwide business A visit to almost any industry area in the country will demonstrate that scrap business is alive and well. Recycle of business is important because it creates business. It plays an important role in conserving and our national resource. These metals get recycled. The proper disposal and recycling of scrap metal is typically done by a business or service. The metal recycling industry encompasses a wide range of metals. The more frequently recycled metals are scrap steel, iron (ISS), lead, aluminum, copper, stainless steel and zinc. There are two main categories of metals: ferrous and nonferrous. Metals which contain iron in them are known as Ferrous where metals without iron are nonferrous. (ISRI Common nonferrous metals are copper, brass, aluminum, zinc, magnesium, tin, nickel, and lead. Nonferrous metals also include precious and exotic metals. Precious metals are metals with a high market value in any form, such as gold, silver, and platinum

Iron ore is extracted from the ground. It is shipped to a mill where iron or steel–steel in this example–is made into different forms, such as sheet or bar stock. The steel is then shipped to a buyer, such as a stamping plant or screw machine shop, to be fabricated. During that fabrication, scrap metal is generated; then, it is sold for processing and/or melting. The Obsolete product enters the recycling system at that point. After processing the scrap metal, the scrap processor will sell the processed scrap to a mill, foundry, or other concern that will use the metal to make new products.

Two Examples of commonly recycled scrap metals products are :-

• Industrial cuttings.
• Industrial machinery.

Scrap recyclers purchase recyclables from various sources, including manufacturers of metals products. Factories; Mills.

As mentioned earlier Ferrous scrap is scrap iron and steel and this classifieds into almost 80 grades.

Scraps or scrap industry to be precise is important as it creates big business and also plays an important role in conserving the natural resources. Scrap helps the primary metals industry feed their needs all over the world. The Metals Recycling industry performs a vital social and environmental function. Recyclers collect products that have reached the end of their useful lives and then transform them into valuable secondary raw materials that can be fed back into the manufacturing process

As the steel industry is so massive, so is the scarp industry. Most of scrap is recovered from old electric scrap, electronic equipment including computers, military equipment, jewellery etc. Not only the steel industry is large, but other base metals are also promising. In fact, around 40% of the world’s need for copper is provided for by scrap. Using scrap not only reduces air pollution and water use, it also conserves natural resources. The greatest environmental benefit from using scrap, instead of virgin ore, is the reduction in greenhouse emissions. Recycling metals saves new energy use by the mining industry. Whether or not base metal, there will always be a need for scrap metal. With energy looking to remain costly and concern for our environment set only to increase, scrap industry continue to remain crucial for almost all industries. Therefore it is no wonder that this is and will remain an important industry for long as nobody knows what the future holds regarding the prices of the base metals & energy. Also concern for our environment set only to increase; scrap yards will be with us for a while.

Scrap market is a key supplier of ferrous materials that are used in the steel making process. The increasing use of steel scrap in steel making is largely attributed to its ability to be repeatedly used as a secondary raw material without loss of quality. Steel scrap also conserves raw material, energy and saves landfill space.

As majority of the scrap steel is used in the production of new steel, trends and developments in the steel industry significantly influence the demand scenario in the steel scrap industry. Rising demand for raw materials used in steel making industry from rapidly expanding emerging markets such as China, India and Brazil is expected to fuel demand for steel scrap. Establishment and operational commencement of new steel mills using electric arc furnace technology is also expected to fuel demand for steel scrap.