Unlocking potential in the global scrap steel market

Projections indicate that scrap use should rise to 45-50% of steel production by 2050 to meet climate targets. However, the availability of scrap varies widely across regions, driven by differences in industrial maturity and recycling infrastructure. International trade plays an essential role in meeting the demand for steel scrap in domestic recycling markets. Yet, there are significant export restrictions in some economies, which account for the largest scrap supplies globally. As secondary steel production through electric-arc furnaces grows, particularly in high-income countries, it is essential to expand the collection, processing and trade of scrap metal. Policies that encourage open trade and investment in digital tools to improve tracking and quality control are critical to ensuring adequate scrap availability for low-carbon steel production globally.