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Ferrous metals

Extract BIR Annual Report 2025

Hammering home the message: green steel and recycling go hand in hand

If there is one message that our Division was relentless in pushing last year, it’s that “green steel” and recycling are indivisible; you cannot achieve the former without the latter. 

Indeed, BIR’s strong convictions on this subject were consolidated into a position paper published by our world body last July. While there is no universal definition of green steel, it is widely understood to refer to steel produced with low or near-zero carbon emissions based on carbon intensity measurements. And according to the BIR’s position statement, recycled steel maximisation across production methods offers the most immediate, commercially viable and sustainable route to producing low-carbon green steel. 

Defining the indivisible link between recycling and green steel

BIR has delivered this same message across a host of forums and stakeholder events, including through our co-operation with the OECD Steel Committee in its decarbonisation work. We have been consistent and demonstrative in our calls for policy-makers to recognise the role of recycled materials in global standards, trade policies and industrial strategies that support the transition to a sustainable steel industry. We have been emphatic in arguing that trade barriers to recycled steel are not only unnecessary but detrimental to wider sustainability goals. In essence, we need to ensure that every country has access to low-carbon production, and that some countries don’t decarbonise at the expense of others. 

In this context, it’s interesting to note that India was the second-largest steel producer last year on almost 165 million tonnes – effectively doubling the total of third-placed USA. But even more noteworthy for our trade, India was also the world’s second-highest recycled steel importer, with a year-on-year increase of 2.8% to more than 6.5 million tonnes in the first nine months of 2025. So restricting international flows of recycled steel would clearly have the potential to hamper green industrial growth in fast-developing economies.

Global trade as a driver for sustainable industrial growth

In 2026, we will continue to hammer home these crucial points, drawing factual support from an array of authoritative sources. These will include the comprehensive BIR/KPMG study on the environmental benefits of recycling, which will add very latest statistics to the wealth of data already quantifying our industry’s critical role. As noted at our May 2025 meeting in Valencia by Professor Dr Frank Pothen of the University of Applied Sciences in Jena, “using recycled steel brings us immense ecological benefits”.

Also at that meeting, we addressed the subject that cast a dark shadow over the entire trading year, namely tariff disputes. Michael Gaylard, Sims Metal’s Global Head of Ferrous Trade, explained some of the many business challenges raised by the implementation or mere threat of tariffs, not least an inability to plan with confidence.

Tariffs piled yet more pressure on our recycling sector at an already testing time owing to, among other factors, the trickle-down effects of weak demand for steel, a reduced supply of recycled steel, and rising costs – most notably for energy. 

Harnessing innovation: from fire safety to artificial intelligence

Another major concern for our sector, as revealed at our meeting in Bangkok, has been the increased incidence of yard fires caused by lithium batteries, with guest speaker Raghav Mecheri of Visia describing these events as nothing short of “scary”. At the earlier BIR Shredder Committee session in Valencia, George Adams of SA Recycling offered detailed practical advice on how to minimise and tackle such fires, including shipping to the ground and regular drills for employees. The same gathering also exemplified the breadth of subjects covered by our Ferrous and Shredder meetings, with Karl Hoffmann of Steinert and Manuel Andreis of Eriez Magnetics Europe illustrating how top equipment companies are constantly striving to boost our industry’s efficiencies and output quality.

If lithium batteries have become ubiquitous, so has artificial intelligence (AI). Our Ferrous Division recognised this by making AI the centrepiece of its discussions in Bangkok. Mr Mecheri of Visia explained his company’s combination of AI and X-ray technology to identify materials, while Sean Davidson of Jules AI described the fusion of AI, sensors and robotics as “the single biggest measurable commercial win” in terms of economic benefits, operational excellence and environmental/safety impacts. 

AI is already transforming the way we operate – from optimising plant efficiency and enhancing material quality to improving worker safety and facilitating data-driven trading decisions. As an industry, we have a proud reputation for innovation and for seizing new opportunities; to this end, AI offers the tools to create more efficient, cleaner and more competitive recycling operations, and its emergence is something we ignore at our commercial peril.

“Trade barriers to recycled steel are not only unnecessary but detrimental to wider sustainability goals.”

SHANE MELLOR

Mellor Metals Ltd (GBR)
PRESIDENT FERROUS DIVISION

Infography

IMPORTANT FACTS

Ferrous metals are mainly composed of iron and have magnetic properties. Steel, an iron alloy containing carbon, is by far the most recycled material in the world. Total crude steel production in 2018 reached 1.8 billion tonnes, with verified data for 81% of global steelmaking indicating an associated steel scrap use of just under 470 million tonnes. A further 70 million tonnes of scrap is consumed by the world’s iron and steel foundries each year. Global external steel scrap trading - including internal EU-28 trade - amounted to 105.4 million tonnes in 2018 for an increase of 2.6% over 2017, according to BIR statistics.
The most commonly recycled items are scrap from industrial processes, and also end-of-life products such as containers, vehicles, appliances, industrial machinery and construction materials.

Proportion of steel scrap used in domestic steel production (2018):

China
20.2%
EU-28
55.9%
USA
69.4%
Japan
35%
Russia
42.5%
Turkey
80.7%
Republic of Korea
41.4%

These figures show that, throughout the world, use of scrap metal has become an integral part of the modern steelmaking sector, improving the industry’s economic viability and reducing its environmental impact. Compared to ore extraction, the use of secondary ferrous metals significantly reduces CO2 emissions, energy/water consumption and air pollution. At the same time, the recycling of steel makes more efficient use of the Earth’s natural resources.

STATISTICS

RECYCLING PROCESSES

SORTING

SHREDDING

BALING

In general, metal recycling is a pyramid industry with many small companies at the bottom feeding scrap to large multi-nationals at the top. Steel recycling involves some, or all, of the following steps:

Sorting:  Magnets attract steel and so, through the use of magnetic belts, this metal can be easily separated from other recyclables such as paper in a recycling facility. Different kinds of steel do not need to be separated.

Shredding:  Shredders incorporate rotating magnetic drums to extract iron and steel from the mixture of metals and other materials.

Media separation: Further separation is achieved using electrical currents, high-pressure air flows and liquid flotation systems. 

Shearing: Hydraulic machinery capable of exerting enormous pressure is used to cut thick, heavy steel recovered from, for example, railways and ships. Other cutting techniques, such as the use of gas and plasma arc torches, are sometimes employed.

Baling: Iron and steel products are compacted into large blocks to facilitate handling and transportation.

APPLICATIONS

Steel is ideal for recycling because it does not lose any of its inherent physical properties during the process, which can be repeated ad infinitum. Steel is 100% recyclable and, therefore, recycled steel can be used for the same applications as steel produced from virgin material. Products that are made of recycled steel include:
  • Construction materials for roads, railways, infrastructure & buildings

  • Electrical appliances

  • Cans & containers

  • Automobiles & other vehicles

  • Office supplies

  • Hardware such as bolts, nuts and screws

RECYCLING FACTS

  • Recycling one tonne of steel saves 1100 kg of iron ore, 630 kg of coal and 55 kg of limestone.
  • Recycling one tonne of steel saves 642 kWh of energy, 1.8 barrels (287 litres) of oil and 2.3 cubic metres of landfill space.
  • Every tonne of steel made from recycled scrap saves enough energy to power four homes for a whole year.
  • Steel recycling uses 74% less energy, 90% less virgin material and 40% less water; it also produces 76% fewer water pollutants, 86% fewer air pollutants and 97% less mining waste.
  • A BIR-commissioned study conducted by Imperial College London has concluded that CO2 emissions are reduced by 58% when using ferrous scrap in steelmaking rather than virgin ore.

Divisional Board

President

Shane Mellor

Mellor Metals Ltd (GBR)

George Adams

SA Recycling (USA)

Mogens Bach Christensen

H.J.Hansen Genvindingsindustri A/S (DNK)

Tom Bird

Enicor (GBR)

Michael Gaylard

SIMS LTD (USA)

Moosa Kazim

Al-Qaryan Group (ARE)

Abhijeet Mahanta

Stelaris Resources AG (CHE)

Sanjay Mehta

MRAI (IND)
General Delegate

Bernd Meyer

BDSV E. V. (DEU)

Denis Reuter

TSR Recycling GmbH & Co. KG (DEU)

Shredder Committee

Chairman

Alton Scott Newell III

Newell Recycling Equipment (USA)

George Adams

SA Recycling (USA)

Mogens Bach Christensen

H.J.Hansen Genvindingsindustri A/S (DNK)

Kevin Gershowitz

Gershow Recycling Corp (USA)

Donald Ward

Ward (GBR)