Europe’s scrap demand set to surge as new EAFs loom: Eurofer
Europe’s transition toward more electric steelmaking, with up to 20 electric arc furnaces expected to be commissioned in 2026-2030, adding 34 million-44 million metric tons of steel capacity, will increase the need for ferrous scrap, especially for high-quality material, the European Steel Association told Platts, part of S&P Global Energy. In 2025, the EU steel ...
The European Steel Association predicts a sharp increase in demand for ferrous scrap as up to 20 new electric arc furnaces are set to be commissioned in the EU from 2026 to 2030, adding 34-44 million metric tons of steel capacity. In 2025, the EU steel industry consumed 74.4 million metric tons of ferrous scrap, with H1 2026 intake at 38.1 million metric tons, maintaining production and scrap utilization similar to the first half of 2025.
However, the transition to more electric steelmaking is expected to drive a surge in EU steel scrap demand. Announced by EU steel companies, 20 new EAF projects are expected between 2026 and 2030, with 33.8 million metric tons/year of capacity progressing and 10.3 million metric tons/year delayed or suspended. Eurofer head of communications, David French, emphasizes that these figures represent steelmaking capacity, not actual production or scrap consumption.
The future steelmaking system will blend scrap and primary iron units, with the ratio depending on factors such as quality, availability, price, product mix, utility, hydrogen costs, and carbon economics. The European Commission aims to reduce EU annual exports of steel scrap by 25-26% from 2025 levels, potentially impacting the European scrap market.
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