Recycled steel is becoming a strategic resource for the global steel industry. At the BIR World Recycling Convention & Exhibition in Gothenburg, Sweden, industry leaders highlighted its role in sustainable steel production.
During the BIR Ferrous Division meeting on June 1, Shane Mellor, President of the BIR Ferrous Division and Managing Director of Mellor Metals Ltd, discussed the growing importance of recycled steel.
“The steel industry of the future will not simply depend on recycled steel, it will be increasingly shaped by it,” Mellor said.
He stressed that recycled steel is no longer just a secondary raw material. Instead, it is becoming a key part of green steel production.
Global Challenges Reshape Steel Markets
Geopolitical instability, energy disruptions and protectionist policies continue to affect ferrous markets. Freight costs and changing trade patterns also create uncertainty.
These challenges have changed global steel flows and market sentiment. As a result, recyclers and steelmakers must adapt to changing business conditions.
However, Mellor sees a stronger role for recyclers in the future.
“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.
Infrastructure and Automotive Trends Affect Recycling
During a special session titled “Recycled Steel: The Strategic Driver of the 2050 Steel Industry?”, futurist Tom Cheesewright examined the forces that could shape future steel demand and recycling markets.
Infrastructure Development
Cheesewright explained that developed countries are focusing on replacing ageing infrastructure as population growth slows. In contrast, countries such as India continue to invest in new infrastructure.
India is also exploring modern technologies to support infrastructure development. This could create opportunities for advanced and sustainable steel solutions.
Changes in the Automotive Industry
The automotive sector is also changing. Vehicles are lasting longer than expected, which could reduce the supply of end-of-life vehicles for recycling.
Consequently, automotive scrap may become a smaller source of recycled steel. At the same time, steelmakers are likely to demand higher-quality recycled materials.
AI Supports Steel Production and Recycling
Artificial intelligence (AI) was another key topic during the session.
Cheesewright cited ArcelorMittal as an example of a steelmaker using AI across several business functions. He noted that AI had significantly reduced the time needed to develop and commercialise new steel formulations.
AI can also help steel producers improve recycled steel procurement. In addition, it can support the use of lower-grade recycled materials.
These applications show how AI can improve efficiency across steel production and recycling supply chains.
Industry Leaders Explore AI, Robotics and Automation
A panel moderated by George Adams, CEO of SA Recycling, examined the role of AI, robotics and automation in steel recycling.
The panel 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.
Mehta explained how Indian businesses use technology to support workers rather than replace them. He described India’s approach as a hybrid model.
Under this model, digital tools improve productivity, efficiency and quality. At the same time, businesses continue to benefit from India’s workforce.
Reuter highlighted AI’s ability to analyse large datasets and identify patterns that businesses might otherwise miss.
The panel also explored the potential of robotics in recycling operations. Cheesewright suggested that advances in humanoid robotics could improve efficiency and safety in difficult recycling tasks in the coming years.
Steel Recycling Supports Emissions Reduction
BIR Statistics Advisor Rolf Willeke presented findings from the 17th edition of World Steel Recycling in Figures.
Global steel production declined again in 2025. However, production through electric arc furnaces continued to grow, signalling progress for the recycling sector.
Willeke highlighted the environmental benefits of steel recycling. The industry uses approximately 630 million tonnes of recycled steel each year in global steel production. This prevents 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. Meanwhile, Turkey and the European Union remained the leading importer and exporter, respectively.
India also strengthened its position as a major steel producer and direct reduced iron producer. The country is also becoming a growing consumer of recycled steel.
Recycled Steel Shapes the Future of Steelmaking
Discussions in Gothenburg highlighted the growing role of recycled steel in the global steel industry.
Decarbonisation targets, circular economy goals and new technologies are reshaping manufacturing. In this changing landscape, recycled steel can help reduce emissions while supporting industrial growth.
Furthermore, advances in AI, automation and electric arc furnace technology could improve the efficiency of recycling operations. These developments are likely to strengthen the recycling sector’s role in the transition towards more sustainable steel production.
