Market Commentary: Green Steel Revolution To Boost Scrap Metal Demand
Steel scrap metal has never been more relevant to the steel sector because it will soon play a key role in the solution to the industry´s greatest problem: the fact that steelmaking accounts for 7% of global greenhouse gas emissions at a time when the world looks to decarbonise towards net-zero. The key is the move from BoF to EAF. Historically, about 70% of all steel was produced using the basic oxygen furnace (BoF) method and 30% using the electric arc furnace (EAF) method. In BoF, iron ore and coal represent 80% of the ingredients, and steel scrap just 5%. However, the burning of such an amount of fossil fuels is no longer socially acceptable. In contrast, in the EAF method, steel scrap comprises 45% of the total ingredients, with iron ore and coal a combined 50%. According to America´s Steel Recycling Institute, recycling one tonne of steel saves the equivalent of 1.1 tonnes of carbon dioxide emissions; and at the same time saves the equivalent of 40% of the energy that would be required to produce new steel from raw materials. While the environmental case for scrap metal recycling is beyond question, economically, operators in the Australian scrap metal industry have faced mixed conditions in recent years. Declining activity in construction plus disruptions to manufacturing have limited demand. Volatile conditions in international markets, partially due to the COVID-19 pandemic, have disrupted export demand. Nevertheless, analysis by IBISWorld says industry revenue in Australia has risen at an annualised 1.8% over the past five years to arrive at a projected $4.26 billion for 2023-24. Meanwhile, as the move from BoF to EAF continues, the global scrap metal recycling market is expected to have a compound annual growth rate of 5.5% during the period 2023-2033.
The professional services company, Accenture, recently issued an overview which positions scrap metal at the heart of sustainability in the steel industry. The report claims EAF production is now the method of choice for mini-mills, which can be located in densely populated areas near construction industry customers and scrap metal suppliers. It notes a surge in new EAF projects worldwide, with more than 110 projects announced between 2020 and 2022. However, the report views the scrap industry’s market fragmentation as an impediment. Small, local and private scrap metal companies are common in the scrap market, resulting in varied and opaque supply chains, especially when compared to steelmakers and iron ore miners. Among other things, the report advocates establishing a global scrap trading digital marketplace where suppliers, especially local scrap yards and scrap and waste managers, can sell scrap with transparency on volume, quality and price. The bottom line is, if steelmakers want to be on the right side of history and position themselves for future success in a net-zero world, it is now time to get more strategic about scrap metal, to treat it as a core part of the green steel revolution – and herein lies the great opportunity for the scrap metal industry in Australia.
InfraBuild is Australia’s only fully vertically-integrated long steel manufacturer, focused on moving towards sustainable steel production. Our business spans scrap metal recycling, steel manufacturing and downstream distribution. As part of our integrated supply chain, we have both a domestic and global scrap metal footprint. In Australia, our 21 InfraBuild recycling facilities are supplemented by five sites in regional NSW which operate as Matthews Metal Management – a brand of InfraBuild. Together, the 26 sites contribute around 1.4 million metric tonnes of recycled metals annually to our steelmaking operations. We are an industry leader in the supply of processed ferrous scrap (steel) products to our domestic steel mills in Sydney and Melbourne. We also have an extensive non-ferrous business that supplies both domestic and international markets with high quality products for recycling. We provide metal recycling solutions to a broad range of scrap metal generators such as householders, local government, mining, demolition, industrials, automotive recyclers, waste companies. InfraBuild is committed to pursuing a high standard of environmental management throughout our operations.
As part of our global operations, we own and operate scrap metal facilities in the US and a recycling export terminal in Gdansk, Poland. Our international trading office is based in Hong Kong, with trading offices also located in China, India, South Africa, Spain, the Netherlands and the UK. For further information please call: 13METAL or email [email protected] Our website is: www.infrabuild.com
For more than 60 years, C.D. Dodd has been serving the Western Australian community and we are proud to be the leading provider of mine site demolition and scrap metal recycling in the state. From humble beginnings, this family-owned and operated business has grown to more than 100 employees and 5 major processing facilities around Western Australia. They are located in: Perth, Kalgoorlie, Karratha, Port Hedland and Onslow as well a range of state-of-the-art equipment providing a full service to the most remote parts of WA. There is no challenge too big or complex for the C.D. Dodd team. We specialise in mine site demolition, industrial metal recycling, hazardous material disposal and scrap metal collection anywhere in Western Australia. As a full-service partner, we can scope, plan, manage and execute your scrap metal project.
Our expertise and equipment enable us to work anywhere from inner-city commercial clean-ups to remote mine site demolitions. Wherever you are in WA, we can deliver on time, within budget and to the highest safety and environmental compliance standards. Trust C.D. Dodd to solve your scrap metal recycling challenge. We welcome the chance to tender for your contract, whether it be a simple clean-up of your laydown area, removal of equipment or buildings, or a complete mine site deconstruction. Phone: (08) 61173720.
Coast Metal Recyclers is the Illawarra´s largest scrap metal dealer, servicing the area for over 50 years. We are a family-owned and run business. With extensive knowledge and experience, we continue to provide a metal recycling service to local businesses, including heavy industry, fabrication, mining and rail services. Dealing in parcels from one tonne to 10,000 tonnes, we buy and sell all grades of scrap metal including steel, stainless steel, copper, brass and aluminium. We buy white goods – insulated and non-insulated electrical cable – scrap vehicles, radiators, motors and transformers. We have a weigh bridge for truck, ute or trailer loads. We weigh you when you arrive, then we weigh you when you have unloaded. You simply pay for the amount unloaded. The more you have, the more we pay. We also offer a scrap metal bin service (capacity 3-50 cubic metres) providing on site delivery and pick up to businesses. Let us save you time and money by removing and recycling your unwanted scrap metal. We also stock reusable plate, pipes, beams and chain in mild steel and stainless steel. What´s more, we provide demolition and site clearance solutions to local and out of area businesses. Please contact the office by phone or email to enquire about our competitive prices. Our phone number is: (02) 42846635. Our website is: www.coastmetalrecyclers.com.au
Manhari Metals began scrap metal recycling in 2007. We started out buying from the public and industrial clients who would drop their scrap off at our yard. As the business started to grow, we expanded to picking up the scrap metal from industrial locations. Today, we have opened additional sites located across Victoria and are continually expanding the business. Manhari Metals has become one of the largest exporters of steel and aluminium in the state of Victoria. We export scrap metal products around the world. We are an integrated solution traditionally provided by multiple third parties that are ISO Certified and Green Star organisations.
From Trash to Treasure: Maddy Gupta – Founder of Manhari Metals. For a young Maddy Gupta, making the move to go from a small Indian town outside Delhi to a university in Melbourne was both a bold and exciting prospect. The thrill of that major life milestone was tempered only by the fact that he had to leave his family behind. So, when he decided to permanently settle in Australia, after working for some time in door-to-door sales, Madhur Gupta decided it was time to set-up his own business here. Contact us on: (03) 93107430.