BIR Ferrous Division Highlights Growing Strategic Role of Recycled Steel in Future Steel Production
Industry leaders discuss geopolitical challenges, AI adoption, market shifts and the evolving role of recycled steel at Gothenburg meeting
Addressing delegates at the BIR Ferrous Division meeting on June 1, Shane Mellor, President of the BIR Ferrous Division and representative of UK-based Mellor Metals Ltd, said the year to date had demonstrated the extent to which global ferrous markets remain exposed to geopolitical instability, energy disruption, protectionism, freight volatility and evolving trade dynamics.
According to Mr Mellor, these developments have contributed to shifts in steel trade flows and market sentiment. He also noted that recycled steel is increasingly being viewed as a strategic resource rather than simply a secondary raw material.
Speaking at the event, he stated that recyclers would need to adapt to geopolitical uncertainty, fragmented trade patterns, changing supply chains and increasing quality requirements. He added that recyclers are expected to play a more significant role within the global steel industry as demand for recycled steel continues to evolve.
The meeting featured a keynote presentation by applied futurist Tom Cheesewright as part of a session titled “Recycled steel: the strategic driver of the 2050 steel industry?”. During his presentation, Mr Cheesewright discussed market pressures and long-term trends affecting ferrous markets.
He noted that current market indicators present mixed signals, with growth in electric arc furnace production and demand for complex electrical steel occurring alongside global disruptions caused by factors such as conflicts and tariffs.
Discussing construction, Mr Cheesewright said demographic trends are influencing infrastructure development differently across countries. While some nations are focusing on rebuilding existing infrastructure due to declining populations, others are rapidly expanding infrastructure to meet the needs of growing populations. He also identified India as a country seeking to expand infrastructure while adopting modern technologies rather than relying on older systems.
In the automotive sector, Mr Cheesewright observed that vehicles are remaining in service longer than originally anticipated. As a result, he suggested that automotive recycling could become a declining source of recycled steel in volume terms, while recycling operations may face increasing quality requirements. However, he indicated that a complete shift toward aluminium is unlikely.
Addressing the role of artificial intelligence, Mr Cheesewright said AI is already influencing steel production processes. He cited the example of ArcelorMittal, which has implemented AI across multiple business functions, reducing the time required to bring new steel formulations to market and improving recycled steel purchasing processes. According to Mr Cheesewright, AI is also enabling the use of greater volumes of lower-quality recycled material.
Following the presentation, Mr Mellor stated that long-term structural changes could have a significant impact on the recycling and steel industries over the next 25 years.
A panel discussion moderated by George Adams, CEO of SA Recycling in the USA, followed the keynote session. Participants included Mr Cheesewright; Adam Szewczyk, Head of Data Management at the World Steel Association; Sanjay Mehta, Managing Director of MTC Business Private Limited and President of the Material Recycling Association of India; and Denis Reuter, Chief Operating Officer of TSR Group GmbH & Co. KG in Germany.
Artificial intelligence and emerging technologies were central themes of the discussion. Mr Mehta explained that in India, new technologies are being deployed to improve efficiency and production quality rather than replace labour. He noted that a hybrid approach is also being adopted within the recycling sector.
Mr Reuter said AI applications within his company’s shredder operations have been explored for sorting activities but have delivered greater value in administrative functions, particularly through the identification of patterns and correlations in large datasets.
The discussion also examined the future role of robotics in recycling operations. Mr Adams suggested robotics could significantly reduce labour requirements within the industry, while Mr Cheesewright highlighted advances in humanoid robotics and their potential application in hazardous and physically demanding tasks.
During the session, BIR Past President Tom Bird raised the possibility that AI could help reduce subjectivity in assessing material quality, potentially increasing the use of lower-quality recycled steel. Mr Adams responded that such developments are likely in the future.
Mr Szewczyk noted that several emerging trends, including increasing levels of car sharing, could reduce future steel demand. At the same time, he indicated that new opportunities would also emerge for the industry.
At the Gothenburg meeting, BIR Ferrous Division Statistics Advisor Rolf Willeke presented findings from the 17th edition of World Steel Recycling and Figures. According to the report, global steel production declined again last year, while steel production through the electric arc furnace route continued to increase.
Mr Willeke also reported declines in global imports and exports of recycled steel, which he attributed to more challenging market conditions.
China remained the world's largest user of recycled steel despite lower steel production, while Turkey and the EU-27 retained their positions as the leading importer and exporter of recycled steel respectively. India continued to strengthen its position as a major steel producer, direct reduced iron producer and growing consumer of recycled steel.
According to Mr Willeke, approximately 630 million tonnes of recycled steel are used annually in global steel production. This contributes to the avoidance of approximately 950 million tonnes of CO2 emissions while supporting energy savings and the conservation of natural resources.