- Domestic scrap to generate 36 mnt of steel against demand of 54 mnt
- 99.6% of national scrap demand to be met by 2030 if exports halt
Japan Metal Daily: Tokyo Steel announced Japan’s first estimate of the Circular Steel Ratio (CSR) — a new indicator measuring the percentage of steel products consumed domestically that are produced using domestically generated steel scrap. The company projects a CSR of 67% by 2030, indicating growing reliance on recycled steel.
What CSR represents
CSR reflects the share of steel demand that can be fulfilled using domestic steel scrap instead of imports. Tokyo Steel emphasised that if Japan retains all locally generated scrap instead of exporting it, 99.6% of national scrap demand could be met by 2030, highlighting the potential of urban scrap resources from buildings and infrastructure.
Key projections for 2030
- Japan’s domestic steel demand: 54 million tonnes (mnt)
- Scrap generation: 38 mnt (17.26 mnt high-grade, 21 mnt low-grade)
- Electric-arc furnace (EAF) production share: 61% of domestic demand
- Domestic scrap could provide 36 mnt of steel, covering 67% of total demand with recycled material
Supply-demand balance
The report shows sufficient availability of lower-grade scrap (107% supply ratio) and a near-balanced supply for higher grades (88%), enabling near-self-sufficiency if fully utilised.
Tokyo Steel’s position
The company said Japan should take the lead in adopting circular steel, leveraging decades of infrastructure investment to maximise scrap recovery and recycling.
Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.
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