A Scrap Shortage Is Coming. Steel Producers Should Act Now, Says Boston Consulting Group
03/14/2024 - A global 9-million-metric-ton scrap surplus could become a 15-million-metric-ton deficit by 2030 as more producers adopt EAF technology to meet decarbonization goals, according to a new forecast from the Boston Consulting Group.
According to the firm, scrap is predicted to account for 50% of the global iron content in steel by 2030, up from 35% today. By then, the firm said, annual scrap consumption in both China and the U.S. will likely be 40% to 50% higher than today.
“The global supply of carbon steel scrap is in a losing battle against demand growth. This crisis has been in the making for many years, and the pattern will continue unabated,” the firm said.
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