- India’s recycled steel usage rises over 15% in H1CY’25, defying global slowdown
- US and EU maintain net export surpluses of 3.8 mnt and 5.8 mnt, respectively
At the BIR World Recycling Convention and Exhibition held in Bangkok on 27-28 October 2025, industry leaders from across the ferrous scrap, recycling, trading, and manufacturing sectors gathered to share insights on how volatile markets, shifting trade routes, and evolving regulations are reshaping the future of steel recycling.
The discussions at the event focused on how data-driven decision-making and stronger traceability systems are helping recyclers and mills stay agile amid shifting demand, evolving sustainability targets, and growing global uncertainties.
As the ferrous market moved into the second half of 2025, the mood was cautious but hopeful. The Bangkok convention came at just the right time — giving industry leaders a space to talk openly about the shift toward greener steelmaking, ongoing trade realignments.
Speakers shared a common belief that the future of the ferrous scrap industry will depend on transparency, collaboration, and adaptability — not just to manage market ups and downs, but inclusive growth across the global recycling ecosystem.
During the session, Rolf Willeke, BIR’s Ferrous Statistics Advisor, unveiled the January-June 2025 update of the 16th edition of “World Steel Recycling in Figures”. His address painted a clear picture — global crude steel output and recycled steel usage both weakened, reflecting slower industrial activity, regional supply disparities, and subdued consumption trends across major producing economies.
Global steel output contracts 2.2% in H1CY’25
According to worldsteel, global crude steel production totaled 934.3 million tonnes (mnt) during the first half of 2025, down 2.2% y-o-y.
Among the regions, Africa stood as the lone bright spot, posting growth, while all others declined under macroeconomic pressures, weak infrastructure spending, and softer manufacturing recovery.
- The Asia/Oceania region remained the largest producer with 693.9 mnt, though volumes slipped 1.9% y-o-y.
- The EU-27 saw a sharper fall of 3.3% to 65.4 mnt, while Other Europe dropped 7.1% to 20.8 mnt.
- The Middle East also recorded a 5.4% decline to 27.5 Mn t, mirroring slower demand and higher input costs.
- In the Western Hemisphere, North America edged lower by 0.6% to 53.2 mnt, while the CIS fell 5.4% to 41.6 mnt, and South America eased 0.4% to 20.5 mnt.
The data reinforced a global pattern — demand contraction and tighter liquidity weighed on both primary and secondary steel routes, even as decarbonisation efforts gained momentum in select markets.
From ‘scrap’ to ‘recycled steel’
A key thematic highlight of the session was BIR’s deliberate shift in terminology from “steel scrap” to “recycled steel.”
The change, though subtle linguistically, is strategically significant — aiming to enhance public perception of ferrous scrap as a sustainable raw material vital for green steelmaking.
Based on BIR’s and worldsteel’s combined estimates, approximately 630 mnt of recycled steel is utilised annually in global steelmaking. This substitution prevents nearly 950 mnt of CO₂ emissions every year while substantially conserving energy and natural resources.
This terminology shift, supported by statistical evidence, places recycled steel at the centre of global decarbonisation efforts, further validating its role as a low-carbon enabler in the steel industry’s transition to cleaner production methods.
DRI output expands 4.3% — India leads
An emerging pillar in the green steel landscape is Direct Reduced Iron (DRI), which continues to complement EAF-based steelmaking in reducing dependency on blast furnaces.
For the first time, worldsteel’s detailed DRI data was incorporated into BIR’s update, showing a 4.3% y-o-y rise in global DRI production to 64.24 mnt in H1.
India maintained its commanding lead, producing 29.2 mnt (+8.7%), driven by stable energy prices and increasing DRI-EAF integration. Iran, the second-largest DRI producer, saw output ease 2.2% to 16.3 mnt, amid technical disruptions and export constraints. Together, these two accounted for nearly 70% of global DRI production, underlining the regional concentration of sponge iron capacity.
Recycled steel usage declines in major economies
The consumption of recycled steel mirrored broader market weakness. Major producers — including China, EU-27, USA, Japan, and South Korea — recorded notable declines in usage during the first half of 2025.
- China’s recycled steel consumption fell 11.4% to 109.01 mnt, outpacing the 3% fall in its crude steel output to 514.8 mnt. Despite the decline, China remained the world’s largest consumer, accounting for nearly one-fifth of global recycled steel use.
- In the EU-27, usage dropped 4.2% to 39.4 mnt, while the USA saw a sharper 9.1% decline to 26.7 mnt, even as its steel output remained largely flat. Japan and South Korea saw their recycled steel use decline 6.7% and 11.3%, respectively.
On the brighter side, India and Turkiye bucked the global downtrend. India’s recycled steel usage jumped 15.3% to 19.65 mnt, supported by 9.2% growth in crude steel output (80.9 mnt) and ongoing capacity expansions among secondary EAF-based mills. Turkiye also registered a 2.2% increase to 16.05 mnt, maintaining its strong position in scrap-fed production.
Collectively, recycled steel usage in major reporting regions fell 6.9% y-o-y to 235.96 mnt, covering around 76% of global crude steel production.
The regional shares of recycled steel in total output were 21.2% (China), 24.5% (India), 33.4% (South Korea), 36.7% (Japan), 60.2% (EU), and 66.4% (USA).
Turkiye led globally with an 87.7% share, reaffirming its identity as the world’s most scrap-reliant steel producer.
Import, export shifts in key regions
- Turkiye continued as the world’s largest importer, though inflows dropped 5.8% to 9.4 mnt. Its main suppliers were the USA (-18.8%) and the Netherlands (+14.6%), reflecting shifting trade routes amid freight and logistics volatility.
- India retained its position as the second-largest importer, rising 18% to 4.58 mnt, with shipments from the USA (+30%) and UK (+7%) increasing notably. Import demand also surged in Pakistan (+181%), EU (+4%), USA (+6.7%), and Thailand (+285%), showing active procurement cycles in developing EAF hubs.
By contrast, import volumes declined steeply in Vietnam (-63%), Taiwan (-40%), and South Korea (-20%), reflecting lower melting activity and extended production curbs.
On the export side, the EU-27 maintained its global leadership, shipping 8.3 mn t (-2.8%) of recycled steel, mainly to Turkiye (+10.7%) and Egypt (-47.1%). The USA followed with 6 mnt (-16.6%), exporting primarily to Turkiye (-12.9%) and Bangladesh (-16.9%).
Exports rose sharply from Japan (+19.5%), Mexico (+27.4%), and Singapore (+32.6%), whereas the UK (-25.4%), Canada (-13.2%), Australia (-46.8%), and Hong Kong (-8.8%) recorded declines.
Notably, both the US and EU maintained a net export surplus of 3.8 mnt and 5.8 mnt, respectively, even as average export prices tracked a parallel downward trajectory through the first half of 2025.
BigMint view: A turning point for scrap
The first half of 2025 marked a turning point for the global steel recycling market. While demand stayed muted across key regions and liquidity remained tight, markets like India — with its double-digit rise in recycled steel usage — and Turkiye, maintaining steady EAF operations, stood out for their resilience.
As the push toward carbon neutrality gains pace, looking ahead, BigMint expects expanding EAF capacities, stronger recycling networks, and national scrap collection programmes, especially across Asia and the Middle East, to drive the next wave of recycled steel growth through 2026.
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