Global supply and demand for steel scrap

According to the presentation by Worldsteel at the 12th China International Metal Recycling Conference in 2019, the trend of electric arc furnace production is expected to grow. Currently, EAF is the main destination in Europe, North America, the Middle East, Southeast Asia and Africa. China continues to focus on manufacturing with non-EAF funds. However, Worldsteel indicated that China could increase its production of EAFs, and by 2035, the global EAF ratio will reach a new all-time high.

Steel production using an EAF unit has less environmental impact. Compared to the BF converter furnace, EAF using scrap steel as the main raw material has greatly reduced the environmental impact. Plus, it takes up less space with less investment, fewer processes and flexible manufacturing.
Advanced economies are the main exporters of scrap steel, with the United States being the largest exporter of scrap steel, followed by the United Kingdom and Japan.

The main importing countries for steel scrap are Turkey, India and Vietnam, which together accounted for a third of the world's scrap steel imports in 2017.

According to worldsteel, the global export of scrap steel is about 100 million tons per year. The worldwide supply of scrap steel is growing steadily and demand continues to rise as well. The main sources of steel scrap are waste steel products. Worldsteel believes there is still ample stock of scrap steel in the global market, and there may even be an oversupply in some regions.