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Apart from the recent boom years, the rewards for converting iron, coal and scrap into commodity grade steel have been limited. Since 2009, when demand collapsed and mills outside of China became raw material price takers, profitability has come under pressure once again and steelmakers have been forced to reconsider their strategy for survival. This had awakened a somewhat forgotten debate on making steel via electric arc furnaces versus basic oxygen furnaces...
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This report includes 2 file(s)
Will the US run out of steel scrap? PDF - 334.51 KB 7 Pages, 0 Tables, 12 Figures
US scrap demand-supply summary (V1.0).xls XLS - 101.50 KB
Description
This Metals Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.
For industry participants and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.
Our analysts are based in the markets they analyse and work with high-quality proprietary data to provide consistent and reliable insight.
We provide unique in-depth analysis of the metals supply industry so you can make confident strategic decisions.
In this report there are 12 tables or charts, including:
Executive summary
US Steel profitability is highly volatile
Nucor achieves higher and more stable margins
Demand
The EAF share of steelmaking will rise as more flexible electric furnaces replace the large-scale, capital-intensive blast furnaces and oxygen converters
The majority of scrap is consumed in EAF steelmaking, with more than a 1,000 kg of scrap used for each tonne of steel made
Supply
Sources of steel scrap
Estimated scrap supply by source
Relative sector sizes have changed drastically since the 1900s
Since the 1990s, the US has been a significant net-importer of vehicles
A longer lifecycle delays the impact of demand fall during the 90s and the GFC
Indirect steel imports have a major impact on obsolete scrap supply
Total scrap supply
How scrap demand compares to supply
Scrap supply that is not consumed domestically is exported
Scrap supply will be sufficient to accommodate rising scrap demand over the next 20 years
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Insight | Apr 2015
Will the US run out of steel scrap?
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