The low level of its use, in particular, is determined by electricity prices
The UK does not use enough raw materials, including ferrous scrap. This view was expressed by UK Steel's Economic and Trade Policy Manager, Chrysa Glistra, at the Kallanish Steel Scrap Conference 2024.
According to her, scrap consumption in the country is only 25% year-on-year. The low level of its use is also determined by electricity prices.
However, the expert noted, it is expected that the growth in demand for scrap in the United Kingdom could lead to a 70% increase in its consumption by 2027.
The UK Steel representative recalled that around 77% of steel is produced by countries that have introduced or plan to introduce measures that restrict scrap exports.
According to Glistra, UK scrap exports and subsequent re-imports of steel lead to an additional 1.5 million tonnes of carbon emissions annually. Furthermore, 60% of UK scrap exports go to non-OECD countries, many of which have lower environmental standards.
The expert believes scrap policy is essential to the UK steel sector's transition to zero carbon. Domestic buyers must be able to compete on equal terms with buyers in export markets. Additionally, innovation will be needed to meet the growing demand for high-quality scrap to produce steel that was previously not produced in electric arc furnaces (EAFs).
As Compraço previously reported, the green transition of the British steel industry will increase demand for scrap in the country. Gareth Stace, chairman of UK Steel, noted in his report that the challenge for the steel industry will be to ensure there is enough of this raw material to power more electric arc furnaces. According to the organization, the United Kingdom produces 10 to 11 million tons of steel scrap annually, of which less than 3 million tons are processed, the rest is exported due to insufficient demand from local steel mills.
