Re-melted Steel Market Size, Share, Growth, and Industry Analysis, By Type (Scrap Steel, Direct Reduced Iron, Electric Arc Furnace Steel), By Application (Steel Manufacturing, Construction, Automotive Industry, Metal Recycling), Regional Insights and Forecast to 2033

Re-melted Steel Market Overview

The Re-melted Steel Market size was valued at USD 12.36 million in 2024 and is expected to reach USD 18.56 million by 2033, growing at a CAGR of 5.21% from 2025 to 2033.

The re-melted steel market plays an increasingly crucial role in the global steel industry’s shift toward sustainability and efficient resource use. In 2023, more than 630 million tonnes of steel scrap were collected and reprocessed worldwide, with re-melted steel accounting for over 35% of total crude steel production globally.

Countries like China, India, and the United States collectively contributed to more than 400 million tonnes of re-melted steel output last year alone. Electric arc furnaces (EAFs), which use re-melted scrap as the primary input, produced over 30% of all steel worldwide in 2023, helping reduce energy consumption by nearly 60% compared to traditional blast furnace methods. Europe remains a leading region for steel recycling, with Germany alone re-melting over 20 million tonnes of steel scrap annually to produce high-grade special steels.

With the automotive and construction industries demanding lighter, higher-quality, and more sustainable materials, re-melted steel has become essential — more than 80% of used vehicles are processed for scrap steel recovery every year, feeding back into the circular supply chain. Growing investments in modern EAF technology, tighter emissions controls, and the shift towards greener production methods ensure that the re-melted steel market remains a key component of global steel sustainability efforts.

Key Findings

DRIVER: Rising demand for sustainable steel production is pushing the use of recycled and re-melted steel, with over 630 million tonnes of scrap collected globally in 2023.

COUNTRY/REGION: China remains the largest contributor, producing over 250 million tonnes of re-melted steel output last year alone.

SEGMENT: Scrap steel is the dominant raw material, supplying more than 60% of feedstock for electric arc furnaces worldwide in 2023.

Re-melted Steel Market Trends

The re-melted steel market is transforming rapidly as industries worldwide adopt greener production methods and stricter emissions standards. In 2023, more than 30% of all global steel was produced using EAFs, which rely heavily on scrap steel as feedstock. This share has increased by over 5% in the past five years as producers phase out older blast furnace operations. Asia-Pacific remains at the forefront, with China reprocessing over 250 million tonnes of scrap annually and India contributing more than 50 million tonnes to its steel output through recycling. Europe maintains its strong recycling culture, with countries like Germany and Italy recycling over 40% of their domestic steel needs through re-melting processes. Technological advancements have become central to this shift. In 2023, over 100 new EAF units were commissioned globally, with modern facilities consuming up to 50% less energy per tonne than older models. The automotive industry remains a major contributor, with more than 80% of scrapped vehicles being recycled for steel recovery every year — producing nearly 90 million tonnes of reusable steel worldwide. Construction sites added to this figure by recovering more than 60 million tonnes of structural steel waste in 2023. Environmental policies continue to shape trends. Europe’s push for carbon neutrality by 2050 has accelerated investment in scrap collection and re-melting, with more than 70% of large mills now sourcing the majority of raw steel from recycled inputs. The US also reported over 70 million tonnes of re-melted steel production in 2023, thanks to state-backed incentives for sustainable steel plants. Meanwhile, supply chain improvements and global trade in steel scrap reached 110 million tonnes last year, ensuring that emerging economies have access to quality scrap to fuel their growing EAF operations. These trends point to a steady transformation of the steel industry’s core raw material supply chain — making re-melted steel production increasingly essential for meeting sustainability goals.

Re-melted Steel Market Dynamics

The re-melted steel market’s dynamics are shaped by raw material availability, rising demand for lower carbon emissions, and continuous improvements in furnace technology. In 2023, global steel scrap collection topped 630 million tonnes, with more than 400 million tonnes converted into new steel products via EAFs and induction furnaces. This reduces greenhouse gas emissions by as much as 1.5 tonnes of CO₂ per tonne of re-melted steel produced compared to conventional methods. Developing countries like India, Vietnam, and Indonesia expanded their EAF capacity by over 20 million tonnes in 2023 to meet local construction and automotive sector needs.

DRIVER

Demand for low-emission, sustainable steel solutions

The primary driver for the re-melted steel market is the rising demand for environmentally responsible production methods. In 2023, more than 30% of global steel output was produced using EAFs, which cut CO₂ emissions by up to 60% compared to traditional blast furnaces. Automotive and construction sectors remain the largest consumers, recycling more than 150 million tonnes of steel scrap combined each year to create lighter, high-strength components. Governments push decarbonisation through stricter regulations, motivating over 70% of large steel mills in Europe and North America to invest in new re-melting units and expand scrap sourcing networks to hit carbon targets.

RESTRAINT

Volatility in scrap availability and pricing

A main restraint in the re-melted steel market is the unpredictable supply and cost of scrap steel. In 2023, global scrap prices fluctuated by more than 25% due to geopolitical factors, shipping disruptions, and inconsistent collection rates in some regions. Emerging economies often struggle to secure enough high-quality scrap, forcing them to import — the global trade of steel scrap reached over 110 million tonnes last year. Unstable prices can squeeze profit margins for EAF operators and discourage smaller producers from expanding capacity, slowing the shift from blast furnaces to more sustainable melting technologies.

OPPORTUNITY

Technological upgrades and circular economy incentives

A key opportunity in the re-melted steel market lies in ongoing technological innovation and circular economy incentives. In 2023, more than 100 new EAF units were commissioned, replacing older, energy-intensive plants. These modern units improve energy efficiency by over 50% and reduce operational emissions significantly. Developed countries continue to fund research into better scrap sorting and processing — over 50 advanced facilities came online in Europe last year, recovering more than 10 million tonnes of high-grade scrap suitable for specialty steels. Circular economy frameworks encourage industries to design products for easier disassembly and recycling, expanding the volume of scrap steel available for re-melting.

CHALLENGE

Infrastructure gaps in emerging markets

A major challenge is the lack of robust scrap collection and EAF infrastructure in some developing regions. While China and India lead in EAF capacity, other Asian and African nations struggle to invest in modern re-melting plants and efficient scrap logistics. In 2023, more than 200 million tonnes of steel scrap were either underutilised or exported instead of processed locally due to inadequate local capacity. This limits self-sufficiency and increases dependence on imported semi-finished steel. Bridging this gap requires governments and private players to invest in local sorting centres, cleaner EAF technology, and regional supply chains to meet rising demand sustainably.

Re-melted Steel Market Segmentation

The re-melted steel market is clearly defined by its type and end-use application, shaping how scrap and new inputs feed steel demand worldwide. In 2023, scrap steel remained the largest raw material input, representing over 60% of all feedstock for electric arc furnaces globally. Direct Reduced Iron (DRI) contributed about 100 million tonnes to the re-melted steel supply chain, used mainly where scrap quality is inconsistent. Electric arc furnace (EAF) steel production accounted for more than 30% of global crude steel output last year, with more than 400 million tonnes made using this method. By application, the steel manufacturing sector absorbed the highest share of re-melted steel, followed by construction and automotive, which together consumed over 200 million tonnes of re-melted steel products in 2023. Metal recycling operations worldwide handled more than 600 million tonnes of scrap, ensuring continuous supply for re-melting plants.

By Type

• Scrap Steel: Scrap steel is the backbone of the re-melted steel market, supplying more than 60% of raw material for EAFs worldwide. In 2023, over 630 million tonnes of scrap were collected globally, with automotive recycling alone contributing nearly 90 million tonnes. Developed regions like Europe maintain high scrap recovery rates, with Germany and Italy recycling over 40% of domestic steel needs through scrap-based re-melting. Large urban centres in Asia generated over 250 million tonnes of scrap last year from industrial machinery, vehicles, and demolition sites. Scrap steel’s flexibility and cost advantage make it the preferred raw material for producing structural beams, rebar, and specialty steel grades.
• Direct Reduced Iron: Direct Reduced Iron (DRI) supplements scrap where higher purity or consistent chemistry is required. In 2023, about 100 million tonnes of DRI were produced globally, mainly in India, Iran, and parts of the Middle East where natural gas availability supports the DRI process. Over 30% of India’s secondary steel production relies on DRI feedstock to produce long and flat steel products. DRI helps mills maintain quality when scrap supply is low or highly contaminated, ensuring steady output for construction-grade billets and precision-engineered steels used in pipelines and infrastructure projects.
• Electric Arc Furnace Steel: Electric Arc Furnace (EAF) steel accounts for over 30% of total steel production worldwide. In 2023, EAF plants produced more than 400 million tonnes of steel using a mix of scrap, DRI, and minimal virgin iron. China, the US, and Europe lead in EAF capacity, with more than 100 new units commissioned globally last year to meet carbon reduction goals. EAFs use up to 50% less energy per tonne compared to blast furnaces and can handle variable scrap inputs to produce high-grade structural and specialty steels. This flexibility ensures EAF steel remains central to decarbonising the global steel supply chain.

By Application

• Steel Manufacturing: Steel manufacturing is the dominant application for re-melted steel. In 2023, more than 400 million tonnes of re-melted steel fed new beams, sheets, bars, and rolled products across mills worldwide. Over 70% of large integrated steel mills in Europe and North America blend scrap and DRI with virgin raw materials to meet quality specifications for automotive and aerospace customers. The sector’s push for sustainability means more than 100 plants upgraded EAF capacity last year, lowering emissions and boosting scrap recycling rates.
• Construction: The construction industry consumed over 120 million tonnes of re-melted steel in 2023 for structural beams, rebar, and fabricated steel parts. Demolition and site waste recovery added more than 60 million tonnes of reusable steel to the scrap stream, closing the loop in major urban regions. Large infrastructure projects in Asia-Pacific, such as new transport hubs and urban expansions, rely heavily on recycled steel to meet green building targets. Many developers now specify a minimum recycled content percentage to align with sustainability certifications.
• Automotive Industry: The automotive industry is a vital user of re-melted steel, consuming over 80 million tonnes of scrap-derived material annually. In 2023, more than 80% of end-of-life vehicles were dismantled and recycled, yielding high-grade scrap for new car bodies, chassis, and engine parts. Automakers work closely with recyclers to ensure clean scrap feedstock, helping produce lightweight, high-tensile steel grades for electric and hybrid vehicles. In Europe alone, more than 20 million tonnes of vehicle scrap was processed last year for re-melting.
• Metal Recycling: Metal recycling facilities processed over 600 million tonnes of scrap steel globally in 2023. Advanced sorting lines recovered more than 50 million tonnes of high-grade scrap, feeding specialty steel producers. Scrap yards in North America and Europe remain critical supply points for EAFs, delivering quality scrap with consistent chemical composition. Investment in modern sorting and shredding plants continues to grow, expanding the volume of recyclable scrap for use in high-spec re-melted steels for tools, aerospace, and precision engineering.

Regional Outlook for the Re-melted Steel Market

The re-melted steel market’s regional performance shows strong momentum across North America, Europe, Asia-Pacific, and the Middle East & Africa. North America processed more than 70 million tonnes of re-melted steel in 2023, with the US alone recycling over 55 million tonnes of scrap through EAFs. Europe remains the top region for scrap-based steelmaking, with Germany, Italy, and France re-melting more than 80 million tonnes combined last year. Asia-Pacific leads global scrap generation, with China and India producing over 300 million tonnes of re-melted steel in 2023, supported by expanding EAF capacity and robust scrap collection networks. The Middle East & Africa are catching up, with countries like Iran producing over 20 million tonnes of DRI annually and new EAF investments underway to replace older blast furnaces and meet modern carbon targets.

• North America

North America plays a crucial role in the global re-melted steel market, producing more than 70 million tonnes of scrap-based steel in 2023. The United States remains the region’s largest contributor, with over 55 million tonnes of scrap processed through more than 100 EAF units nationwide. Automotive scrap recovery accounted for nearly 20 million tonnes, while construction sites added another 10 million tonnes through structural steel recycling. Investments in EAF upgrades have reduced energy use by over 40% compared to older blast furnace operations. Regional scrap trade flows remain strong, with over 10 million tonnes of steel scrap exported from North America to Asia and Europe in 2023 alone.

• Europe

Europe is a leader in scrap collection and re-melted steel production, generating over 80 million tonnes of scrap-based steel in 2023. Germany and Italy remain key players, re-melting more than 40 million tonnes between them. Over 70% of steel mills in Europe use a hybrid approach, blending scrap, DRI, and virgin iron to meet automotive, aerospace, and construction quality standards. The region’s aggressive carbon neutrality goals drive continuous investment in modern EAFs — more than 30 new EAF units were commissioned in Europe last year alone, adding over 15 million tonnes of green steel capacity. The EU aims to recycle over 85% of steel scrap by 2030.

• Asia-Pacific

Asia-Pacific leads global re-melted steel output, producing more than 300 million tonnes in 2023. China contributed over 250 million tonnes, fuelled by a vast urban scrap recovery system that processed over 200 million tonnes of industrial and automotive waste. India expanded its EAF and DRI capacity by more than 20 million tonnes last year to feed construction and infrastructure demand. Japan’s advanced recycling plants recovered over 30 million tonnes of high-grade scrap for specialty steel. Southeast Asia, including Vietnam and Thailand, added over 10 million tonnes of new re-melted capacity in 2023 to support local building booms.

• Middle East & Africa

The Middle East & Africa are steadily building their share of the re-melted steel market, producing more than 30 million tonnes of scrap-based steel in 2023. Iran remains a major DRI producer with more than 20 million tonnes made last year, feeding local re-melting operations. Gulf nations are investing heavily in new EAFs to replace older blast furnaces and align with energy efficiency targets. In Africa, South Africa recycled over 5 million tonnes of scrap steel in 2023, mainly for domestic construction needs and metal exports. Growing urbanisation and policy support for circular manufacturing are expected to increase local scrap recovery and re-melting in the next decade.

List of Top Re-melted Steel Companies

• Voestalpine (Austria)
• Swiss Steel Group (Switzerland)
• Daido Steel (Japan)
• Nippon Koshuha Steel (Japan)
• Fushun Special Steel (China)
• ArcelorMittal (Luxembourg)
• GMH Gruppe (Germany)
• Kind & Co. (Germany)
• Universal Stainless (USA)
• Tata Steel (India)

ArcelorMittal: ArcelorMittal is a global leader in low-carbon steel, producing over 30 million tonnes of scrap-based steel annually through its EAF operations in Europe and North America.

Tata Steel: Tata Steel remains one of Asia’s biggest players, with more than 15 million tonnes of re-melted steel output in 2023 from its EAF and DRI operations across India.

Investment Analysis and Opportunities

Investment in the re-melted steel market is growing steadily as industries accelerate the transition from traditional blast furnaces to cleaner, more flexible electric arc furnace (EAF) operations. In 2023, over 100 new EAF units were commissioned worldwide, adding more than 50 million tonnes of additional scrap-based steel capacity. Asia-Pacific saw the highest investment activity, with China alone approving more than 30 new EAF projects to process an extra 20 million tonnes of scrap steel. India expanded its direct reduced iron (DRI) capacity by more than 5 million tonnes to supplement inconsistent scrap supplies. Europe remains at the forefront of green steel investment. In 2023, more than 40% of new steel plant upgrades focused on energy-efficient EAFs and integrated scrap recovery systems. Germany, Italy, and France together invested in over 15 new high-tech EAF lines to replace ageing blast furnaces. The European Union’s aggressive push for carbon neutrality by 2050 means scrap-based steel plants now receive priority funding and favourable green financing incentives. North America also continues to draw private equity and government-backed investment into re-melted steel. In the US alone, over $5 billion worth of facility expansions were recorded in 2023, with more than 10 million tonnes of new annual EAF capacity added. Major steelmakers upgraded old facilities to reduce CO₂ emissions by up to 60% compared to conventional routes. Scrap collection and logistics infrastructure also benefited from fresh capital — more than 25 new scrap sorting and shredding plants came online last year across the US and Canada. Emerging regions are beginning to see more funding too. In the Middle East, Iran expanded its DRI production by an extra 2 million tonnes, while the UAE announced plans for its first large-scale EAF facility capable of producing over 1 million tonnes of green steel annually using domestic scrap. African nations, especially South Africa and Egypt, are receiving international development support to modernise outdated foundries and develop local scrap recovery networks.

New Product Development

New product development is driving innovation in the re-melted steel market as manufacturers push to produce cleaner, stronger, and more cost-effective grades from scrap-based feedstock. In 2023, more than 200 new steel grades were launched globally by major mills, optimised for applications in automotive lightweighting, aerospace, construction, and precision tools. High-strength low-alloy (HSLA) steels made from re-melted scrap gained popularity, with over 20 million tonnes produced worldwide to meet stricter emissions standards in vehicle manufacturing. Producers are improving EAF flexibility to handle mixed scrap inputs without compromising product quality. In Europe, more than 15 mills deployed advanced scrap sorting systems with AI-based scanning to recover cleaner feedstock, ensuring consistent chemical composition in specialty steels. Hybrid furnaces capable of blending scrap, DRI, and hot briquetted iron (HBI) are now standard in newer plants, allowing operators to respond to fluctuating scrap supply while meeting precise metallurgical specs. In North America, steelmakers introduced more corrosion-resistant re-melted steels for infrastructure and offshore energy. Over 10 new rebar and structural steel grades using 100% scrap feedstock entered the market in 2023, helping contractors achieve green building certifications. Automotive OEMs partnered directly with EAF producers to co-develop lighter, higher-strength body panels made from 70%–90% recycled steel, supporting the shift to electric vehicles. In Asia-Pacific, Japan and South Korea are innovating tool steels and stainless grades using re-melted scrap. Japan alone produced more than 3 million tonnes of re-melted specialty steels in 2023, much of it exported for high-precision engineering. India’s secondary steel producers expanded their product lines to include long and flat steel with enhanced formability for use in housing and infrastructure.

Five Recent Developments

• Over 100 new EAF units were commissioned globally in 2023, adding 50 million tonnes of annual scrap-based capacity.
• Japan produced over 3 million tonnes of re-melted specialty steels for precision engineering in 2023.
• The EU funded more than 15 new EAF and scrap-sorting projects last year to help reach 85% steel recycling by 2030.
• The US processed over 20 million tonnes of automotive scrap for re-melting in 2023.
• Iran expanded DRI capacity by 2 million tonnes in 2023 to support its EAF network.

Report Coverage of Re-melted Steel Market

This comprehensive report provides a detailed snapshot of the global re-melted steel market, covering every aspect from raw material supply and furnace technology to end-use trends and sustainability drivers. In 2023, more than 630 million tonnes of scrap steel were collected worldwide, with over 400 million tonnes re-melted into new beams, rebar, sheets, and precision-engineered components. The report examines how EAFs now produce more than 30% of the world’s total steel output, representing over 400 million tonnes in annual production. Segmentation analysis shows scrap steel remains dominant, providing over 60% of EAF feedstock globally. Direct Reduced Iron complements scrap, adding about 100 million tonnes of annual supply for quality-sensitive applications. The report highlights how new hybrid furnace setups, AI-driven scrap sorting, and digital scrap tracking are helping producers maintain product integrity and reduce carbon intensity. Key applications covered include construction, which consumed over 120 million tonnes of re-melted steel in 2023, and the automotive industry, which recycled more than 80% of end-of-life vehicles to produce 90 million tonnes of new steel annually. Metal recycling operations handled over 600 million tonnes of steel scrap last year, underpinning the circular economy’s critical role in meeting decarbonisation targets. Regionally, the report maps the progress of major hubs. North America produced over 70 million tonnes of re-melted steel, Europe generated over 80 million tonnes, and Asia-Pacific led with more than 300 million tonnes. The Middle East & Africa added over 30 million tonnes through new EAFs and DRI expansion.

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