Recycled Steel Emerging as Strategic Pillar of Low-Carbon Global Steel Industry

· The global recycled steel industry showed signs of stabilisation in early 2026 after a difficult 2025, supported by recovering steel production and improved market sentiment.

· However, the first quarter of 2026 highlighted the industry’s vulnerability to geopolitical tensions, energy disruptions, protectionism, freight volatility and economic uncertainty.

· The industry is increasingly viewing recycled steel as a strategic raw material critical to achieving global decarbonisation and carbon neutrality goals by 2050.

· Around 630 million tonnes of recycled steel are used annually in steelmaking, helping prevent an estimated one billion tonnes of CO₂ emissions while conserving energy and natural resources.

· Recycled steel is no longer seen merely as a traded commodity but as an essential input for future low-carbon steel production.

· Immediate industry challenges include:

o Rising protectionism and trade barriers

o Volatile freight and insurance costs

o High energy prices

o Restrictive monetary policies

o Geopolitical instability

· Conflict escalation in the Middle East and disruption around the Strait of Hormuz have sharply increased oil, gas, freight and insurance costs, creating highly volatile global trading conditions.

· Rapid changes in mill purchasing patterns, supply origins and logistics costs are directly affecting exporters and steelmakers worldwide.

· Regional market developments across Europe, the USA, Asia and the Middle East are being closely monitored through reports prepared by BIR Ferrous Division board members.

· These issues will be central to the BIR Ferrous Division plenary session in Gothenburg on 1 June 2026 titled:
“Recycled steel: the strategic driver of the 2050 steel industry?”

· Applied Futurist Tom Cheesewright will deliver a keynote presentation examining how climate, technology, culture and power trends may reshape ferrous metal markets.

· A high-level panel discussion moderated by George Adams will discuss the steel industry’s roadmap to 2050 and the strategic role of recycled steel.

· Panel participants include:

o Adam Szewczyk

o Sanjay Mehta

o Denis Reuter

· The event will also feature the release of the 17th edition of “World Steel Recycling in Figures” covering January–December 2025, providing important market data and industry trends.

· Alexandra Vartan recently joined the BIR advocacy team to strengthen work on trade, climate diplomacy, sustainability and global supply chain issues.

· Despite continuing market uncertainty, long-term fundamentals for recycled steel remain strong due to:

o Decarbonisation initiatives

o Circular economy policies

o Expansion of electric arc furnace (EAF) capacity

o Growing recognition of recycled steel’s environmental value

· The BIR Ferrous Division reaffirmed its commitment to supporting members through market intelligence, advocacy and international collaboration amid rapidly evolving global market conditions.

[ABS News Service/19.05.2026]

The global recycled steel industry appeared to be stabilising, steel production was recovering in certain regions and sentiment had improved following a difficult 2025. However, the first quarter of 2026 quickly reminded us how exposed global markets remain to geopolitical instability, energy disruption, protectionism and economic uncertainty.

As the global steel industry pivots towards green steel and carbon neutrality, one question is becoming increasingly important: is recycled steel the strategic driver of the 2050 steel industry? The long-term answer appears increasingly positive. Around 630 million tonnes of recycled steel are used annually in steelmaking, preventing as a conservative estimate some one billion tonnes of CO₂ emissions while saving energy and conserving natural resources. More than ever before, recycled steel is being recognised not simply as a traded raw material but also as an essential strategic input for the future of low-carbon steel production.

However, while the long-term outlook is encouraging, our industry must first navigate immediate challenges. Protectionism, shifting trade dynamics, volatile freight markets, energy cost pressure, restrictive monetary policies and geopolitical risk are all shaping today’s operating environment. The escalation of conflict in the Middle East, disruption surrounding the Strait of Hormuz, surging oil and natural gas prices and also rising freight costs and insurance premiums have combined to create a highly volatile trading environment. Rapid shifts in mill purchasing behaviour, changing supply origins and volatility linked to energy and logistics are having immediate implications for exporters and steelmakers worldwide. The first quarter certainly demonstrated how quickly markets can move when geopolitical and supply-chain dynamics align.

For a more detailed view of regional developments - including in Europe, the USA, Asia, the Middle East and other key markets - I encourage members to read the individual reports prepared by our Ferrous Division board colleagues, which provide valuable insight into the specific challenges and opportunities shaping each region.

These themes will be at the heart of our Ferrous Division plenary session in Gothenburg on Monday June 1 from 14.00 to 15.00. Under the title “Recycled steel: the strategic driver of the 2050 steel industry?”, we will explore whether recycled steel is truly the engine that will drive the steel industry towards its long-term climate and production goals.

I am delighted that our keynote speaker will be Applied Futurist Tom Cheesewright, whose presentation “Casting forward: the pressures and trends shaping tomorrow’s ferrous metal markets”, will examine how climate, culture, power and technology may influence future demand and liquidity in ferrous markets. His practical approach to future risks and opportunities promises to bring a valuable new perspective to our discussions.

The session will also include a high-level panel discussion moderated by Ferrous Division board member George Adams, CEO of SA Recycling. He will be joined by Adam Szewczyk of the World Steel Association and two BIR Ferrous Division board members: Sanjay Mehta of MTC and President of the Material Recycling Association of India; and Denis Reuter of TSR Group. Together, they will debate the industry’s roadmap to 2050 and the strategic role recycled steel must play.

We will also mark the exclusive release of the 17th edition of “World Steel Recycling in Figures” for January to December 2025, with key trends and highlights presented by our Ferrous Statistics Advisor Rolf Willeke. This important publication remains a cornerstone of our Division’s work, providing members with essential market data and a clearer understanding of the global trends shaping our sector.

I would also like to welcome Alexandra Vartan, who joined the BIR advocacy team in March as Policy Officer for Trade & Environment. Her experience in trade, climate diplomacy, sustainable development and multilateral policy processes will strengthen BIR’s work at a time when trade disruptions, environmental regulation and global supply chain barriers are becoming ever more important for our industry. I encourage members attending the Gothenburg Convention to meet Alexandra and welcome her personally.

As we move further into 2026, uncertainty will likely remain a defining feature of our markets. However, the long-term fundamentals supporting recycled steel have never been stronger. Decarbonisation, circular economy policies, investment in electric arc furnace capacity and growing recognition of recycled steel’s environmental importance continue to create significant opportunities for recyclers worldwide.

The BIR Ferrous Division remains committed to supporting members during these rapidly changing times through market intelligence, advocacy and international collaboration.