Recycled steel is emerging as a strategic resource at the centre of the global steel industry’s transition towards sustainability, according to industry leaders speaking at the BIR World Recycling Convention & Exhibition currently underway in Gothenburg, Sweden.
Addressing delegates at the BIR Ferrous Division meeting on June 1, Shane Mellor, President of the BIR Ferrous Division and Managing Director of Mellor Metals Ltd, highlighted the growing significance of recycled steel amid shifting global market dynamics.
“The steel industry of the future will not simply depend on recycled steel, it will be increasingly shaped by it,” Mellor stated, emphasising that recycled steel is no longer viewed merely as a secondary raw material but as a critical component of green steel production.
Global Challenges Reshaping Steel Markets
Mellor noted that ferrous markets continue to face significant pressures from geopolitical instability, energy disruptions, protectionist policies, freight volatility and evolving trade dynamics.
These developments have altered global steel flows and market sentiment, requiring recyclers and steelmakers to adapt rapidly to a changing business environment.
Despite these challenges, Mellor believes recyclers are poised to play a much larger strategic role within the steel value chain.
“Recyclers of the future will not simply supply raw material; they will become strategic partners at the very heart of the global steel industry,” he said.
Future Trends Shaping the Ferrous Sector
As part of a special session titled “Recycled Steel: The Strategic Driver of the 2050 Steel Industry?”, leading futurist Tom Cheesewright explored the long-term forces expected to influence steel demand and recycling markets.
He highlighted several trends that are creating both opportunities and uncertainties for the sector.
Infrastructure Development
Cheesewright noted that while some developed nations are focused on replacing ageing infrastructure due to slowing population growth, countries such as India continue to invest heavily in new infrastructure development.
India, in particular, is seeking to expand infrastructure using modern technologies rather than traditional approaches, creating opportunities for advanced and sustainable steel solutions.
Automotive Industry Transformation
The automotive sector is also undergoing structural changes. Vehicles are increasingly lasting longer than originally anticipated, which could reduce the volume of end-of-life vehicles available for recycling in the future.
As a result, automotive scrap may gradually become a smaller source of recycled steel, while quality requirements for recycled materials are expected to become more demanding.
Artificial Intelligence Accelerating Change
Artificial intelligence emerged as a major discussion point throughout the session.
Cheesewright cited examples of steelmakers such as ArcelorMittal using AI across multiple business functions. One reported outcome has been a significant reduction in the time required to develop and commercialise new steel formulations.
AI is also helping steel producers optimise recycled steel procurement and increase the utilisation of lower-grade recycled materials.
According to Cheesewright, AI is already influencing both steel production and recycling supply chains and is likely to become an increasingly important driver of industry efficiency.
Industry Leaders Discuss Emerging Technologies
A panel discussion moderated by George Adams, CEO of SA Recycling, explored the role of AI, robotics and automation in the future of steel recycling.
Panel participants included Tom Cheesewright, Adam Szewczyk of the World Steel Association, Sanjay Mehta, Managing Director of MTC Business Private Limited and President of the Material Recycling Association of India, and Denis Reuter, Chief Operating Officer of TSR Group GmbH & Co. KG.
Speaking from an Indian perspective, Mehta explained that technology is being adopted to complement rather than replace labour.
He described India’s approach as a hybrid model, where digital tools are used to improve productivity, efficiency and quality while continuing to leverage the country’s workforce strengths.
Reuter highlighted that AI is proving particularly valuable in analysing large datasets and identifying business patterns that may otherwise remain unnoticed.
The panel also discussed the growing potential of robotics in recycling operations. Cheesewright suggested that advances in humanoid robotics could significantly improve the efficiency and safety of challenging recycling tasks in the years ahead.
Recycling’s Contribution to Sustainability
The session also featured a presentation from BIR Statistics Advisor Rolf Willeke, who reviewed findings from the 17th edition of World Steel Recycling in Figures.
Despite another decline in global steel production during 2025, steel production through electric arc furnaces continued to grow, signalling positive progress for the recycling industry.
Willeke reiterated the substantial environmental benefits of steel recycling. Approximately 630 million tonnes of recycled steel are used annually in global steel production, preventing an estimated 950 million tonnes of carbon dioxide emissions while conserving energy and natural resources.
China remained the world’s largest consumer of recycled steel in 2025, while Turkey and the European Union retained their positions as the leading importer and exporter respectively.
India continued to strengthen its position as a major steel producer, direct reduced iron producer and growing consumer of recycled steel.
Building the Steel Industry of the Future
The discussions in Gothenburg highlighted a growing consensus that recycled steel will become increasingly central to the future of steelmaking.
As decarbonisation targets, circular economy principles and technological innovations reshape global manufacturing, recycled steel is expected to play a critical role in reducing emissions while supporting industrial growth.
With advancements in AI, automation and electric arc furnace technologies, the steel industry’s transition towards a more sustainable future is likely to be increasingly driven by the recycling sector.
