A study by Laplace Conseil, titled "A Transition towards Scrap-based EAFs Accelerates the Competitiveness and Decarbonization of the American Steel Industry," asserts that the US has an ample supply of scrap to meet the increasing demand for recycled steel produced in electric arc furnaces (EAFs).
The study indicates that the US scrap reservoir has surpassed four billion metric tons and continues to grow. Currently, EAF-based steel accounts for about 70 percent of US steel production, and it is projected to represent 90 percent by 2040. The study notes that this vast scrap supply is supported by a growing global market, which facilitates the transition to a larger share of EAF-based steel production. The quality of scrap is also improving, further enhancing its viability as a production resource.
Additionally, the report highlights that the shift from blast furnace steelmaking, which relies on coal and iron ore, to electric arc furnace processes reduces carbon emissions significantly. With iron ore reserves shrinking, the growing availability of scrap offers a more sustainable future for steel production.
Philip K. Bell, president of the Steel Manufacturers Association in the US, remarked, “This study confirms what steelmakers across the globe already know: the future of steel lies in recycling, not mining. The availability of scrap and the development of low-emission production mean that the need for high-emission steelmaking in blast furnaces is diminishing. This transition is a win for both the environment and the competitiveness of American manufacturing.”
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