A study titled “A Transition towards Scrap-based EAFs Accelerates the Competitiveness and Decarbonization of the American Steel Industry” by French consulting firm Laplace Conseil has stated that the US has more than enough scrap to meet the growing demand for recycled steel produced in electric arc furnaces.
The study says that the US scrap reservoir already tops four billion mt and keeps growing, while EAF-based steel accounts for about 70 percent of US production and is expected to make up 90 percent by 2040. This strong scrap reservoir is enhanced by an increasing global supply, which can facilitate a shift toward a larger share of EAF-based steel production. Scrap quality is also improving. Noting that the shift from blast furnace-based steelmaking processes that depend primarily on coal and iron ore to electric arc furnace processes that use electricity to turn scrap iron into new steel dramatically reduces carbon emissions, the study pointed out that, as iron ore reserves shrink, the scrap supply grows.
“The study from Laplace Conseil confirms what steelmakers in America and around the world already know: the future of steel is in recycling, not mining. The availability of scrap and the quality of low-emissions production means that in the US, in particular, the need for high-emissions steelmaking in blast furnaces and basic oxygen furnaces is diminishing. That change is good news for the environment and the competitiveness of American manufacturing,” Philip K. Bell, president of the US-based Steel Manufacturers Association, commented.