According to Shane Mellor, President of the Bureau of International Recycling (BIR) Ferrous Division and representative of Mellor Metals, these factors have continued to reshape international steel flows and market sentiment during 2025.

Speaking at the BIR Ferrous Division meeting on 1 June in Gothenburg, Sweden, Mellor said that recycled steel is increasingly moving beyond its traditional role as a secondary raw material. Instead, it is becoming a strategic resource within the transition towards lower-emission steel production.

He noted that the recycling sector must continue adapting to geopolitical uncertainty, fragmented trade structures, evolving supply chains and stricter quality requirements. At the same time, recycling companies are becoming more closely integrated into steelmaking value chains as steel producers seek reliable sources of recycled steel.

Long-term trends reshape steel demand

The meeting featured a presentation on the future development of ferrous markets and the role of recycled steel in the steel industry up to 2050. The session examined several structural trends that are expected to influence future demand and supply patterns.

Construction remains a key factor. While some countries face declining populations and focus increasingly on replacing or modernising existing infrastructure, others continue to expand infrastructure rapidly due to population growth. Emerging economies such as India are investing heavily in infrastructure while adopting newer technologies and production methods.

The automotive sector presents a different outlook. Vehicle lifespans continue to increase, potentially reducing the number of end-of-life vehicles available for recycling. As a result, the automotive industry may become a less significant source of recycled steel in the future. At the same time, rising quality requirements could make recycling processes more demanding.

Despite ongoing developments in lightweight vehicle design, no major shift away from steel towards aluminium is currently expected across the sector.

Artificial intelligence influences steel production and recycling

Artificial intelligence is already affecting steel production and recycling activities. Steel producers increasingly use data-driven technologies to accelerate product development, optimise production processes and improve raw material purchasing strategies.

The use of artificial intelligence can also support the integration of lower-grade recycled materials into steel production by improving material analysis and process control. At the same time, technological advances in manufacturing may reduce the generation of production scrap.

During a subsequent panel discussion, industry representatives explored the role of artificial intelligence, automation and robotics in future recycling operations.

Participants reported that technology adoption varies by region. In India, companies increasingly combine automation with human labour to improve efficiency and product quality. Within recycling operations, this hybrid approach supports both productivity and workforce utilisation.

Representatives from the recycling industry also highlighted the growing value of artificial intelligence in administrative and analytical applications. Large-scale data analysis can reveal operational patterns and correlations that were previously difficult to identify.

Robotics emerged as another major topic. Participants discussed the potential for robotic systems to undertake repetitive, hazardous and physically demanding tasks within recycling facilities. Advances in humanoid robotics could accelerate deployment by allowing systems to operate within existing industrial environments without extensive modifications.

Quality management and low-grade material utilisation

Panel members also examined whether artificial intelligence could help reduce subjectivity in material grading and quality assessment. Improved data analysis and material recognition technologies could increase the use of lower-grade recycled steel while maintaining production standards.

Industry representatives agreed that further technological development is likely to expand opportunities for processing more complex material streams and improving resource efficiency.

Industry statistics highlight recycling's contribution

The Gothenburg meeting also included a presentation of key findings from the seventeenth edition of the World Steel Recycling and Figures report.

Although global steel production declined again in 2024, production via electric arc furnaces continued to grow. This trend is particularly relevant for the recycling industry because electric arc furnace production relies heavily on recycled steel.

International trade in recycled steel weakened during the year, with both imports and exports declining amid challenging market conditions.

China remained the world's largest consumer of recycled steel despite lower steel output. Turkey retained its position as the leading importer of recycled steel, while the European Union remained the largest exporting region. India continued to strengthen its position as a major steel producer, a leading producer of direct reduced iron and an expanding consumer of recycled steel.

Globally, the steel industry uses approximately 630 million tonnes of recycled steel each year. According to the report, this avoids around 950 million tonnes of carbon dioxide emissions while reducing energy consumption and conserving natural resources. These figures underline the role of recycled steel in supporting more resource-efficient and lower-emission steel production.