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Global Scrap Consumption Rises Despite Drop in Steel Production

Глобальне споживання металобрухту у 2025 році зросло на 4,5% і досягло 480 млн т, хоча світове виробництво сталі скоротилося на 2,5%. Для промислового бізнесу це важливий сигнал: попит на сировину залишається сильним, а цінова й логістична волатильність на ринку може посилюватися.

According to the Bureau of International Recycling (BIR), global scrap metal consumption rose by 4.5% year-on-year in 2025, reaching 480 million tonnes, despite a 2.5% decline in global steel production. This dynamic indicates that the role of recycled raw materials in metallurgy is strengthening even amid weaker steel output. For market participants, this underscores the continued importance of purchasing strategies, logistics, and raw material availability in key regions.

Key Shifts in Scrap Consumption and International Trade

China remains the world's largest consumer of scrap metal, increasing its usage by 8.3% to 227 million tonnes, despite a 4.4% drop in domestic steel production. India also showed positive dynamics, with both scrap consumption and steel production growing simultaneously. Overall, the countries and regions covered by the BIR report account for approximately 75% of global scrap usage in metallurgy.

The structure of demand depends heavily on steelmaking technology. In Turkey, the share of scrap in steel production stands at 86.8%, whereas in China it is only 23.6%, due to the dominance of basic oxygen furnace (BOF) production. According to BIR and Worldsteel estimates, approximately 630 million tonnes of scrap metal are used annually in global steel production, preventing nearly 950 million tonnes of CO2 emissions and reducing the consumption of energy and natural resources.

In international trade, Turkey remains the leading importer, although its purchases decreased to 18.8 million tonnes. India ranked second with imports of 8 million tonnes, while imports grew in the EU, the USA, and Pakistan. At the same time, the European Union remained the world's largest scrap exporter at 16.7 million tonnes, while the USA secured second place despite a decline in exports to 11.8 million tonnes.

Impact on the Steel Market and Solutions for Industrial Buyers from winox.ua

Rising scrap metal consumption amid falling steel production typically indicates a tighter balance of raw materials in specific regions and can impact the cost of finished metal products. For Ukrainian steelmakers and processors, this is particularly significant, as the state of the global scrap market directly affects operational costs, export opportunities, and price expectations. In such conditions, businesses require not only up-to-date market insights but also predictable metal supply channels.

This is where practical solutions from winox.ua, as a supplier of rolled metal, stainless steel, and non-ferrous metals for industrial clients, become essential. Amid raw material market fluctuations, the company helps enterprises mitigate purchasing risks through reliable supply chains and a consistent approach to inventory management. For manufacturing facilities planning acquisitions under volatile conditions, this provides a vital advantage in maintaining operational and financial resilience.

The environmental and technological aspects must also be considered. The increasing role of scrap in global steelmaking drives demand for high-quality raw materials and certified products that meet modern requirements for origin and technical specifications. In this context, winox.ua partners with carefully selected manufacturers to offer certified rolled metal for industrial applications where quality, traceability, and compliance with standards are critical.

What This Means for the Ukrainian Market

For Ukraine, the global surge in scrap market activity translates into potential intensifications in raw material competition and a higher sensitivity of the domestic market to external price indexes. If major importers like Turkey and India maintain high demand, this could affect both export flows and scrap availability for domestic producers. Concurrently, rising scrap imports in the EU and USA demonstrate that the market is becoming increasingly interconnected.

For industrial companies, this underscores the need for more precise metal procurement planning, supply diversification, and close monitoring of global trade developments. Businesses that combine market analytics with a reliable supply partner will ultimately prevail. This is why the new BIR data is critical not only for steelmakers but also for the entire B2B segment of metal consumers.

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