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    SMA: US steelmakers deserve credit for leading decarbonization charge

    Written by Philip K. Bell


    When it comes to finding ways to reduce emissions in steel manufacturing, we are in the all-of-the-above camp. Hydrogen, carbon capture and storage, renewable energy, nuclear power, direct-reduced iron (DRI) — all have shown promise. Some, such as on-site solar power, are already a significant part of day-to-day operations at mills operated by members of the Steel Manufacturers Association (SMA). Others are not yet ready for widespread commercial use but could get there soon. In time, breakthrough clean technologies could revolutionize steelmaking.

    What we can say for sure is that the American steel industry’s emissions profile is the envy of the world, owing largely to the scrap-based steelmaking that makes up nearly three-fourths of US capacity. On average, an electric-arc furnace (EAF) produces 75% fewer carbon emissions than the extractive, coal-intensive process that integrated steelmakers use. American steel producers are between 75% and 320% more carbon efficient than global producers, depending on the product category, according to the Climate Leadership Council.

    Philip K. Bell

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    September service center shipments and inventories report

    US service centers’ flat-rolled steel supply increased marginally in September, gaining ground for only the second time all year. Shipping days of supply rose to 45.9 last month, according to SMU data. That figure marks a 3.7% increase from August. September’s result represents a modest gain after inventories hit a five-year low the previous month. But it’s nearly 16% below September 2025 levels. Sheet inventories have averaged ~45 shipping days of supply over the past six months. Flat-rolled inventories represented 2.18 months of supply in September, up 3.7% from August. However, the figure was 15.5% below September 2025. The month-on-month (m/m) gain in inventories resulted from a boost (+21.2%) in intake that was partially offset by a 5% increase in shipments.