EAF Growth Drives Major Shift in Asian Scrap Trade

Metal Recycling News  |  2026-09-08 05:47:37   |   By

The evolving market could encourage Asian countries to treat scrap as a strategic raw material, industray sources said.

Summary
  • India and Vietnam drive regional steel demand: India produced around 87 million tonnes of crude steel in the first half of 2026, up 7.1% year over year, while Vietnam’s output surged 26.9% to 15.2 million tonnes.
  • EAF expansion will strengthen scrap demand: India aims for 300 million tonnes of annual steelmaking capacity by 2030, with 35–40% expected from EAF and induction furnaces, increasing the industry's dependence on ferrous scrap.
  • Scrap is becoming a strategic raw material: Investments in collection and processing are growing across Asia as recycled steel demand rises. Japan’s planned EAF expansion could further increase domestic scrap consumption and reshape regional trade patterns.

SEATTLE (Scrap Monster): Asia’s ferrous scrap market is entering a period of major change as supply disruptions, rising steel output and growing electric-arc furnace (EAF) capacity are seen reshaping traditional trade routes.

According to recent trends, India and Vietnam are emerging as primary drivers of regional steel demand. India produced about 87 million tonnes of crude steel during the first half of 2026, up 7.1% from a year earlier, while Vietnam’s output rose sharply by 26.9% to 15.2 million tonnes, according to the latest data published by the World Steel Association (worldsteel).

India targets to achieve an annual steelmaking capacity of 300 million tonnes by 2030. Around 35-40% of this is expected to come from EAF and induction furnace production, which in turn will boost the industry's reliance on ferrous scrap.

There has been an increasing push for stronger domestic recycling systems. The Asian region has been witnessing increased investment in scrap collection and processing, primarily driven by growing demand for recycled steel and supportive government policies. For instance, Japan’s proposed expansion of EAF steelmaking is expected to boost domestic scrap consumption.

The evolving market could encourage Asian countries to treat scrap as a strategic raw material, industray sources said.