The UK’s steel industry is embracing a green transformation, with scrap metal emerging as a key player in the shift towards eco-friendly steel production. As highlighted in a recent Financial Times article, industry leaders are navigating a path to decarbonise by replacing traditional blast furnaces with cleaner electric arc furnaces, a process that melts down 100% of scrap metal compared to the limited capacity of traditional methods.
The catalyst for this change is the surge in demand for recycled metals, driven by global concerns over industrial emissions, energy security, and an increasing appetite for sustainable practices. Alexandra Dock in Liverpool, owned by European Metal Recycling (EMR), stands as a prime example, processing an impressive 1 million tonnes of recycled steel annually.
However, challenges loom on the horizon. The UK must ensure a steady supply of scrap steel to meet the demands of electric arc furnaces, with current exports exceeding 80% of the produced scrap. The trade body, UK Steel, calls for policy actions to incentivise the retention of scrap in the UK, encourage sustainable processing, and improve scrap quality.
Industry experts predict a surge in demand for scrap steel, but caution against potential restrictions on exports, fearing it could destabilise prices. The article also underlines the importance of policy incentives to drive demand for low-carbon steel and address issues such as the high cost of electricity compared to global standards.
In a recent report, Gareth Stace, head of industry trade body UK Steel, said: “
Steel scrap is core to our rapid transition to net zero. What is shocking is that the UK produces more than 10M tonnes of scrap a year, but exports 80 per cent of it. With so many countries around the world acting swiftly to secure their own supply and restricting their exports, we cannot just sit on our hands.”
Despite potential challenges, the green steel revolution offers an opportunity for the industry to innovate, improve quality through better processing methods, and foster collaboration between steelmakers and recyclers. As the UK steels itself for a sustainable future, the focus on a vibrant recycling industry and globally competitive steel production remains at the forefront.
