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    June 18, 2021

    Scrap Squeeze Ahead as World Switches to EAFs: McKinley

    Written by Michael Cowden

    The traditional correlations between finished steel and scrap prices have broken down this year, and historical spreads might remain off-kilter as more electric-arc furnace (EAF) mills come online globally, CRU Senior Analyst Ryan McKinley said.

    Crude steel output via EAFs in North America is expected to grow by about 16 million metric tonnes, approximately 20%, between 2017 and 2025. That’s a “tiny portion” of EAF output growth of about 100 million metric tonnes expected globally over the same timeframe, McKinley said.

    Michael Cowden

    Michael Cowden is editor-in-chief for Steel Market Update. Cowden has covered the steel industry since 2007. He specializes in flat-rolled steel but has also reported on steel long products, steel pipe and tube, and aluminum. Before joining SMU, Cowden held reporting jobs at Fastmarkets AMM in Chicago, the Associated Press in Pittsburgh, and the Cambodia Daily in Phnom Penh. He has also worked as a copy editor and in marketing at the University of Chicago Press. Cowden has a BA in English from the University of Chicago and an MSJ journalism from Northwestern University’s Medill School of Journalism. Contact him at michael@steelmarketupdate.com or 724-759-7872.

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