Price: Scrap is part of the solution, not a limitation

North America has one of the most robust steel scrap markets in the world. There has been a long history of steel production, significant imports of steel and steel-containing products, and mature steel consumption. Due to this, the reservoir of scrap available to be recycled each year in the US and other North American markets is substantial and growing. Indeed, the American steel industry is one of the lowest emitting in the world because of its unique focus on recycling – and scrap-based steelmaking. Going forward, the availability of scrap in North America will not limit US decarbonization efforts or impede greater electric furnace deployment, including for the most advanced grades and types of steel.

Scrap is a powerful raw material when it comes to steel decarbonization. Pathways to decarbonization that focus on other raw materials pale in comparison in terms of scope and ambition, all the while requiring far greater capital expenditures. Scrap-based steelmaking in an electric furnace emits nearly 70% less than ore-based steelmaking in a blast furnace. And when coupled with green energy, the gap grows even wider. The fundamental advantage of decarbonizing using an electric furnace is that scrap can comprise up to 100% of the raw metallics. In contrast, a blast furnace can typically only use up to 30% scrap in its raw materials mix. While the amount of scrap available varies by region, in the US and North America, there is enough scrap available to support our path to decarbonization, including greater use of electric furnaces.