Global scrap consumption declined in most regions in Q1

In the first quarter of 2025, global consumption of ferrous scrap decreased in most key regions. According to the World Association of Recyclers (BIR), scrap use declined in China, the EU, the US, Japan, Turkey and South Korea. India was the only major market where consumption increased.

In China, despite a 0.6% y/y increase in steel production to 259.3 million tonnes, scrap consumption decreased by 1.6% y/y – to 57.62 million tonnes. In the EU, the use of raw materials fell by 7.1% y/y, while total steel production decreased by only 2.5% y/y. The United States also showed a disproportionate decline: while steel production fell by 0.6% y/y, scrap consumption fell by 14.9% y/y – to 13.02 million tonnes.

In Japan, scrap consumption fell by 7.8% y/y, while steel production decreased by 4.9% y/y. The largest decline was recorded in South Korea – by 25.1% y/y, while steel production fell by only 3.6% y/y. In Turkey, the figure fell by 1% y/y – to 7.243 million tonnes, while steel production decreased by 3.4% y/y. At the same time, consumption in India increased by 19.1% y/y – to 10.06 million tonnes, accompanied by a 6.8% y/y increase in steel production.

The import market also saw changes. Turkey, the world’s largest importer of scrap, reduced purchases by 11.5% y/y in January-March 2025, to 4.716 million tonnes. The Netherlands, the US and the UK remained the main suppliers. India, the second-largest importer, also slightly reduced purchases (-0.4% y/y). The US (+1.4% y/y), the EU (+5% y/y), Pakistan (+9.9% y/y) and Thailand (+66.1% y/y) increased their imports, while Vietnam and Taiwan showed a sharp decline.

The EU retained its first place in the world in terms of scrap exports, with 4.578 million tonnes (+4% y/y). Turkey, Egypt and India remain the main buyers. The US, despite a 12.3% y/y drop in exports, retains second place, while Japan, the UK, Australia and Mexico show an increase in supplies.

In total, according to BIR and the World Steel Association, about 630 million tonnes of scrap is used globally every year, which avoids almost 950 million tonnes of CO2 emissions, reduces energy consumption and promotes sustainable production.

As GMK Center reported earlier, global scrap consumption in 2024 decreased by 1% compared to 2023 to 460.6 million tonnes. This happened against the backdrop of a weaker decline in overall steel production, down 0.7% y/y – to 1.55 billion tonnes. This trend indicates a certain decline in the role of scrap in the steel cycle in some countries.