BDSV Spotlights Vital Role of Scrap In Steel Production

SEATTLE (Scrap Monster): BDSV- the Germany-based steel scrap trade association published the findings of the recently conducted study, which states that scrap is a key raw material for steel production and that it leads to significant reduction of emissions. The study titled “Scrap Bonus: External Costs and Fair Competition in the Global Value Chains of Steelmaking” was undertaken by Germany’s Fraunhofer Center for Economics of Materials (CEM).

The study focuses on “scrap bonus”, which is an indicator of the total avoided climate and environmental costs per ton usage of scrap in steel production. It recommends incorporation of scrap bonus in the steel market price mechanism.

According to the study, using one ton of steel scrap in steel production leads to carbon dioxide savings of 1.67 tons. Similarly, stainless steel production could save 4.3 tons of carbon dioxide for every ton of recycled stainless steel scrap. The scrap bonus per ton of carbon steel scrap is estimated at around $86-$231.

Dr. Frank Pothen, head of the CEM and a co-author of the study noted that the study highlights the importance of scrap as a raw material in steel production. The use of high-quality scrap delivers huge economical and environmental benefits, he added.

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