- Investments target higher purity ratios to support growing EAF output
- Mills optimise procurement to reduce reliance on imported shredded
South Korea’s Hyundai Steel has announced a KRW 170 billion ($116 million) investment programme to secure high-grade steel scrap and reinforce low-carbon raw material capabilities by 2032, aligning with the nation’s transition toward EAF-based decarbonised steelmaking, according to reports in multiple leading publications.
The plan features new shredders and upgraded sorting and refining lines at the Dangjin and Pohang works.
A KRW 22 billion project will establish a new shredding and material-upgrading facility in southern Gyeonggi Province, designed to convert obsolete scrap into high-purity shredded scrap. Construction begins in early 2027, with commercial operations targeted for 2028.
With South Korean mills expanding EAF capacity, access to high-quality scrap has become increasingly strategic. The country’s EAF raw material self-sufficiency still ranges at 80-90%, keeping mills dependent on both domestic and imported high-grade scrap.
Shredded scrap, with its high iron content and uniform quality, is emerging as a key feedstock for low-carbon steel production.
To strengthen domestic supply, Hyundai Steel is deepening partnerships with local scrap processors. Since 2023, it has supported KRW 20 billion in shredder investments across three partner companies and will roll out additional waste-treatment support programs.
The company is also advancing technologies to upgrade ordinary scrap into premium grades. A pilot sorting and refining line installed at Pohang in 2024 is already operating, with further expansion planned in 2026. Hyundai Steel also intends to pursue a national research project to accelerate high-grade scrap production technology.
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