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| UK Scrap |
Domestic Scrap Supply Critical for EAF Transition
UK steelmakers call for urgent reforms to strengthen the domestic scrap supply chain. Currently, the UK produces 10 million tonnes of scrap annually, with over 80% exported. Meanwhile, electric arc furnace (EAF) adoption increases scrap demand for low-carbon steel. As a result, developing a robust local scrap market is essential to maintain competitiveness and reduce reliance on imports.
Structural Challenges Hinder Scrap Utilization
The UK faces multiple structural issues, including insufficient domestic processing, inconsistent quality standards, and high energy costs. Therefore, the circular steel subcommittee urges government action to align fiscal, energy, and environmental policies. In contrast, without intervention, domestic producers risk losing out to global competitors who efficiently use scrap in low-carbon steel production.
Policy Recommendations to Unlock Scrap Potential
UK Steel recommends investing in local processing infrastructure, standardizing scrap definitions, modernizing regulatory oversight, and including recyclers in industrial schemes. Meanwhile, aligning domestic and export market costs can retain jobs and encourage investment. Consequently, improving scrap logistics and quality control will support sustainable EAF-based manufacturing in the UK.
ScrapInsight Commentary
Strengthening the UK scrap supply chain is crucial for low-carbon steel and industrial resilience. Policy alignment and domestic processing investment could reduce export dependency. This initiative may enhance job retention and position the UK competitively in the EAF steel market.
