Global scrap consumption in 2024 decreased to 460 million tons

Global scrap consumption in 2024 decreased by 1% compared to 2023, to 460.6 million tons, according to BIR data, which covers 76% of global steel production.

This was against the backdrop of a smaller decline in total steel production – by 0.7% y/y, to 1.55 billion tons. This trend indicates a certain decline in the role of scrap in the steel cycle in some countries.

The largest reduction in scrap consumption was recorded in South Korea, down 14% y/y – to 22.5 million tons, while steel production in the country fell by only 4.8% y/y. The United States reduced scrap consumption by 3% y/y (55.3 million tons), Japan – by 3.2% y/y (30.8 million tons), and China – by 1.9% y/y (209.7 million tons), despite a slight decline in steel production.

On the other hand, the EU (+1.9%, to 76.6 million tons), India and especially Turkey showed positive dynamics, where scrap consumption increased by 7.5% y/y – to 31.3 million tons.

The share of scrap in steel production in Turkey reached a record 84.8%, the highest among the key countries. For comparison, the US accounted for 69.2%, the EU for 59.2%, and China for only 20.9%.

Turkey has also strengthened its role as a leading importer of scrap, purchasing 20.1 million tons of raw materials abroad (+6.7% y/y). The main suppliers are the US, the Netherlands and the UK.

At the same time, the EU remained the leader in terms of scrap exports, despite an 11.4% y/y decline to 17 million tons. The United States held second place with 14.4 million tons (-9% y/y).

A slight global decline in scrap consumption amid stable steel production indicates a shift in the balance between primary and secondary raw materials. However, the growing role of scrap in Turkey, the EU and India indicates a strengthening of the decarbonization trend and the development of a circular economy in certain regions.

In 2023, global scrap consumption decreased by 12% compared to 2022 to 411.28 million tons. At the same time, global steel production increased by 0.2% y/y – to 1.55 billion tons. In all major countries and regions, except for the United States and India, scrap consumption decreased in 2023.