Scrap Metal Powers the UK’s Green Steel Revolution
The UK’s steel industry is undergoing a green transformation, with scrap metal emerging as a crucial player in the shift towards eco-friendly steel production. As highlighted in a recent Financial Times article, industry leaders are working to decarbonise by replacing traditional blast furnaces with cleaner electric arc furnaces (EAFs), capable of melting 100% scrap metal—compared to the limited recycling capacity of older methods.
The catalyst for this change is a surge in demand for recycled metals, driven by global concerns over industrial emissions, energy security, and a growing commitment to sustainability. Alexandra Dock in Liverpool, operated by European Metal Recycling (EMR), is a prime example, processing an impressive 1 million tonnes of recycled steel annually.
However, challenges remain. With the UK currently exporting over 80% of its scrap production, there is a pressing need to secure a stable domestic supply to meet EAF demand. Trade body UK Steel is calling for policy measures that incentivise the retention and high-quality processing of scrap within the UK.
Industry leaders caution that while scrap demand will grow, restricting exports could destabilise global prices. They advocate for policy incentives to stimulate demand for low-carbon steel and address persistent challenges such as the high cost of electricity compared to international benchmarks.
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.” — Gareth Stace, Head of UK Steel
Despite these hurdles, the green steel revolution offers a golden opportunity for innovation, improved processing methods, and stronger collaboration between steelmakers and recyclers. As the UK advances towards a sustainable industrial future, building a vibrant recycling ecosystem and strengthening domestic steel production remain central goals.
