In 2023, according to data from the Bureau of International Recycling (BIR), global ferrous scrap consumption in key countries (China, EU-27, USA, Japan, Turkey, India, South Korea) was 1% lower compared to 2022, reaching 461 million tons. This slight decline occurred despite increased crude steel production via the BF-BOF route. Additionally, global seaborne scrap trade fell by 5% to 56 million tons, reflecting challenges in the steel market amid economic uncertainties.

Nevertheless, ferrous scrap remains indispensable for steel industry sustainability and emissions reduction. Scrap-based steelmaking via the EAF route offers significantly lower emissions intensity compared to the traditional BF-BOF route, aligning with global decarbonization efforts. Developed economies like the US and the EU are increasing EAF utilization due to abundant scrap availability. Spiraling global carbon prices will further accelerate the shift to EAFs. Achieving decarbonization goals requires access to low-carbon embedded DRI and high-quality ferrous scrap, particularly in Asia. However, the increase in EAF capacity in many countries may tighten global scrap availability, prompting advanced economies to prioritize domestic decarbonization, while emerging economies should diversify supply sources and enhance domestic scrap sector organization. In South Asian economies, ferrous scrap usage will be influenced by shifts in overseas scrap availability. Despite this, BF-BOF capacity expansions in Asia may lead to increased scrap usage in BOF steelmaking to mitigate greenhouse gas emissions.