A report by Laplace Conseil, entitled “A Transition towards Scrap-based EAFs Accelerates the Competitiveness and Decarbonization of the American Steel Industry,” claims that the US has a sufficient scrap reserve to serve the growing demand for recycled steel manufactured in electric arc furnaces (EAFs).

According to the study, the US scrap reservoir has already exceeded four billion metric tons and is increasing. Today, EAF-based steel covers around 70 percent of US steel production and is estimated to account for 90 percent in 2040. The research indicates that such immense scrap supply is backed by an expanding worldwide market, allowing for the switch to a larger proportion of EAF-based steel production. Quality of scrap also increases, increasing its feasibility as a production source.

Moreover, the document points out that the transition away from blast furnace steelmaking that is based on iron ore and coal cuts down carbon emissions heavily. With dwindling iron ore reserves, increased availability of scrap provides a sustainable future for the production of steel.

Philip K. Bell, US Steel Manufacturers Association president, said, “This study validates what steelmakers around the world already know: the future of steel is recycling, not mining. The presence of scrap and the emergence of low-emission production ensure that the demand for high-emission steelmaking in blast furnaces is decreasing. This shift is a win for the environment and for the competitiveness of American manufacturing.”