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Study: Recycling scrap steel offers environmental and competitive benefits
November 8, 2016
Study: Recycling scrap steel offers environmental and competitive benefits
By Nicole Sagener | EurActiv.de | Translated By Samuel Morgan
The market for scrap steel is weakening, but the circular economy may offer a ray of hope. A new study claims that old steel products will become increasingly important to the industry. EurActiv Germany reports.
The steel recycling industry continues to come under pressure, firstly because of China’s dumping practices and secondly because of the drop in iron ore price, which lets new steel be made more cheaply, according to the Federation of German Steel Recycling and Waste Management Companies (BDSV).
In 2015, the price of certain types of scrap fell by up to 40%, making it unattractive financially. As a result, demand decreased by 7.5%.
Europe-wide, it looks bleak for the industry: In eight years, the use of scrap has fallen by nearly a quarter to 90 million tonnes. In the past, Europe could count on Turkey to deal with, but in 2015 it bought 20% less scrap than it did in 2014.
But there is a glimmer of hope on the horizon. A study produced by the Fraunhofer Research Institute UMSICHT reveals that the steel recycling sector will become increasingly important to the steel industry’s value chain.
Read more at EurActiv.com.
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