The European Union is projected to need an additional 8 to 11 million metric tons of steel scrap by the end of the decade. This increased demand is driven by the EU's objective to raise crude steel production by 12-13% by 2027. The move is intended to counteract a reduction in steel imports, which has been influenced by existing steel safeguards and the implementation of the Carbon Border Adjustment Mechanism (CBAM).
This significant increase in scrap metal requirements is also linked to the planned rollout of new electric arc furnaces (EAFs) within the EU. EAFs primarily use scrap steel as their raw material, making the availability of this resource crucial for the region's steel industry transformation.
For freight forwarders and logistics professionals, this development signals potential shifts in cargo flows and increased demand for the transportation of steel scrap. The substantial volume required could strain existing logistics networks, particularly for bulk and breakbulk shipping, and potentially influence freight rates for these commodities. Forwarders should anticipate a greater need for efficient sourcing and delivery of scrap metal to European steel producers, possibly leading to new trade lanes or increased volumes on existing ones.
