Steel Distributors: An Essential Link in the Supply ChainA new report by Laplace Conseil, entitled “A Transition towards Scrap-based EAFs Accelerates the Competitiveness and Decarbonization of the American Steel Industry,” points out the United States’ rich reservoir of scrap metal, which is capable of supporting the increasing need for recycled steel made in electric arc furnaces (EAFs).

The US reservoir of scrap has grown beyond four billion metric tons and is still on the rise, according to the report. At present, EAF-based steel production contributes about 70% of the nation’s overall steel production, and with estimates, it is likely to reach 90% by 2040. The report points out that this widespread availability of scrap, along with an increasing global market, is pushing the shift towards EAF-based production. Additionally, the quality of scrap is also improving, making it a better primary raw material.

The research also emphasizes the ecological advantage of replacing blast furnace steel production, which uses coal and iron ore, with EAF-based processes. Since iron ore supplies are diminishing, the rising supply of scrap iron is a less environmentally demanding substitute for the industry. Carbon output is substantially reduced by EAF technology, as it is the key to helping the industry go green.

Philip K. Bell, president of the Steel Manufacturers Association, confirmed the study’s conclusions, saying, “This research validates what steelmakers around the globe already know: the future of steelmaking lies in recycling, not mining. With a bountiful supply of scrap and the development of low-emission manufacturing, the need for high-emission blast furnace steelmaking is diminishing. This shift serves the environment as well as American industry’s competitiveness.