Metal Packaging Sector in Doldrums Due to Import Restrictions

SEATTLE (Scrap Monster): An Indian trade association alleged that import restrictions implemented by the government have left metal packaging sector in a dilemma.

According to Metal Containers Manufacturers Association (MCMA), the imposition of Bureau of Indian Standards (BIS) norms by the country has impacted the overseas supply of tinplates and tin-free steel. The metal packaging sector is being faced with acute short supply of raw materials. The shortage of raw materials has badly impacted the production of steel cans, MCMA noted.

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The industry largely depends on imports of tinplates and tin-free steel from various countries. It was in July last year that the Ministry of Steel issued an order that makes BIS certification mandatory on major inputs required by the industry. The BIS regulation imposes restrictions on steel products, especially with easy-open ends and peel-off ends, which in turn has led to shortage of raw material. Moreover, it has led to 15% surge in prices.

MCMA demanded that the implementation of the July 2020 order be put on hold until domestic supply is sufficient enough to meet the industry demand. The industry requires approximately 700,000 metric tons of tinplate/tin-free steel per year. The raw material shortage has put the industry, which has been already under pressure due to pandemic restrictions, into further dilemma.