Ferrous Scrap Highlighted as a Key Strategic Raw Material

The decarbonisation efforts will gain momentum as the industry has already declared its commitment to reduce carbon dioxide emissions by 2050.

SEATTLE (Scrap Monster): The demand for ferrous scrap is set to witness a boom, with the ramp up of decarbonisation efforts across the globe. The consumption of ferrous scrap in steel production is poised to surge, as the steel industry is set to witness rise in share of electric arc furnaces (EAFs) in global steelmaking process.

The steel sector contributes nearly 7% of global greenhouse gas emissions. The decarbonisation efforts will gain momentum as the industry has already declared its commitment to reduce carbon dioxide emissions by 2050.

The transition to a low-carbon economy will require a change in steel production process, replacing the traditional processes with latest technologies. As of now, approximately 30% of total global steel production uses recycled scrap. This share is predicted to rise to 50% by 2050, says industry experts. The share of electric arc furnaces in global steel production has risen from 25% in 2015 to 28% in 2022.

The increased use of scrap will not only reduce industry emissions, but will also reduce resource consumption. As per estimates by the World Steel Association (worldsteel), every tonne of scrap will avoid emission of 1.5 tonnes of carbon dioxide and consumption of nearly 1.4 tonnes of iron ore, 740 kilograms of coal and 120 kilograms of limestone.

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