After 2050, steel will be mainly produced from ore due to scarcity of scrap metal

Most steel will continue to be produced from primary raw materials, including iron ore and metallurgical coal, after 2050 due to limited reserves of ferrous scrap, according to information provided on July 28 by the Net-Zero Steel Pathway Methodology Project, or NZSPMP, an industry group ...

“We cannot rely on scrap metal to decarbonize steel production; iron ore (primary) steel production will remain critical beyond 2050 ... scrap steel production will only meet about 45% of future demand due to limited availability of scrap, ”said Javier Bonaplata of steelmaker ArcelorMittal on webinar NZSPMP.

This means that the goals and budgets of the steel sector for decarbonization must be split into two parts: iron ore-based production (primary steel) and scrap-based production (secondary steel), which differ significantly in terms of decarbonization needs, Bonaplata said.

Setting different carbon intensity targets and decarbonization budgets for primary and secondary steelmaking is the first recommendation made in an NZSPMP report released this week, he said.

Steel production from ferrous scrap is reported to account for 0.3 mt CO2 in Category 2 and 0.04 mt CO2 in Category 1 emissions per metric ton of steel produced, making it a “carbon neutral steel” if it also uses clean energy sources. ...

This is very beneficial compared to iron ore-based steel production, which produces 1.4 to 2.2 Mt CO2 in emissions of 1 and 2 combined per ton of steel produced, he said.

Currently, steel production from scrap metal accounts for just over 30% of world steel production.