The UK's preference to produce steel from scrap is considered an indicator of conversion, and Tanmoy Mandal, Director & Head - Metals & Mining of Research and Consulting (Deutschland) GMB-Research & Consulting Group AG, emphasized the importance and potential of scrap in the industry by stating that "Scrap could be the new gold of steel production."
Besides, the prediction that India will surpass Türkiye in scrap imports was put on the table as an important factor that will affect the balance point of the global scrap trade. He also added that UK produce 9 mtpy scrap but export only 6 mtpy.
There was consensus that the transition to Electric Arc Furnaces (EAF) in China will minimize the difference between scrap and rebar prices, contributing to maintaining balance in the sector.
It was also mentioned that CBAM has stimulated further investment in the scrap industry by increasing the demand for scrap. He also mentioned that DRI/ HBI demand supply gap vs scrap sourcing would redefine the future of sustainable steel making. In addition to these developments, Mandal pointed out that trade restrictions have been an important factor in redefining the industry's value chain.
Tanmoy Mandal, commented as; '' Well since the gas prices are flying high due to geopolitical and inflation and scrap sorting and processing might be challenging, producing DRI in EU might not be extremely attractive for the steel industries transporting the DRI on long distance is not a great option so, the best alternative would be the HBI, the MENA region or the regions like Africa where renewables are in abundance.''
With all these topics including increasing efficiency and CCUS in short to mid term and H2 based steel making in longer term it can attribute with a decisive role in forming the future strategy for steel players.
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