The European steel sector should allocate resources towards innovation and technology to enhance the utilisation of old scrap, Italian steel trade association Assofermet president Cinzia Vezzosi tells Kallanish.
Anticipated trends indicate that old scrap from demolition grades will constitute the predominant portion of metal waste in the coming years. This shift is largely attributed to the manufacturing and steel sectors’ forecast of a decline in metal waste, driven by advancements in technological innovation that enable companies to minimise their waste output.
The European steel industry is characterised by ageing mills and EAFs. High-quality scrap can be obtained from the scrap sector, but the procurement and processing of certain scrap qualities, such as the high E40 shredded automotive grade represents a significant cost for merchants.
The purchase of car bodies entails substantial expense, alongside the investment in equipment and skilled personnel required to process material and effectively refine it into high-quality scrap. But there is reluctance from steelmakers to pay a premium for this material.
The utilisation of lower-quality demolition scrap is contingent on steelmakers’ investment in innovation and the adoption of new EAFs.
Steelmakers are instead allocating resources towards the acquisition of new shredders to enhance vertical integration and reduce reliance on external suppliers.
Direct reduced iron exhibits similar characteristics. New DRI capacity is being introduced in Europe and substantial investment will facilitate the establishment of new facilities. The challenge of sourcing high-quality DRI is anticipated to become significant, given the limited availability of high-grade iron ore.
Steelmakers should allocate resources towards innovation to effectively utilise lower iron content DRI, Vezzosi believes.
The Italian scrap sector is poised to allocate capital towards enhancing equipment capabilities. The availability of scrap is projected to decline in the upcoming years while old scrap is expected to significantly increase as new EAFs in Europe are set to replace the traditional blast furnace method.
“It is crucial for steelmakers to accelerate the revamping of their steelmaking processes in order to adapt to a more effective and lower quality scrap usage,” Vezzosi comments.
“Countries like Turkey and the US have made significant investments in advanced EAFs and latest generation equipment designed to utilise older and lower quality scrap, while maintaining the integrity of the finished product. We should follow their example,” she adds.
Natalia Capra France
