Global Recycled Steel Usage Declines Amid Mixed Regional Trends in Early 2025

The Bureau of International Recycling (BIR) Ferrous Division has released the 16th edition of its World Steel Recycling in Figures report, revealing notable shifts in global recycled steel consumption during the first half of 2025. Total usage across major producing nations fell 6.9% year-on-year, reflecting weaker demand and subdued industrial activity in several key markets.

According to the report, China, the EU-27, the United States, Japan, and South Korea all recorded declines in recycled steel consumption between January and June 2025. Despite this, China remained the world’s largest consumer at 109.01 million tonnes, though its usage dropped 11.4% from the same period last year, while crude steel output fell by 3%, signaling a slowdown in manufacturing and construction sectors.

It is reported that global crude steel production reached 934.3 million tonnes during the first half of 2025, down 2.2% year-on-year, according to data from worldsteel cited by BIR. Asia/Oceania remained the largest producing region at 693.9 million tonnes (-1.9%), while Africa recorded the only regional increase. Other regions, including the EU-27, North America, South America, the Middle East, and the CIS, experienced declines ranging from 0.4% to 7.1%.

The BIR Ferrous Division emphasized that it now uses the term “recycled steel” instead of “steel scrap” to underscore the material’s crucial role in sustainable steelmaking, highlighting that approximately 630 million tonnes of recycled steel are used globally each year, preventing nearly 950 million tonnes of CO₂ emissions while conserving energy and natural resources.

In green steelmaking, direct reduced iron (DRI) production rose 4.3% globally in the first half of 2025. According to the report, India led with an 8.7% increase to 29.2 million tonnes, while Iran declined 2.2% to 16.3 million tonnes. Recycled steel usage fell in China, the EU-27, the USA, Japan, and South Korea, but increased in India by 15.3% and in Turkey by 2.2%. Turkey maintained the highest proportion of recycled steel in crude production at 87.7%.

The report noted that Turkey remained the world’s largest importer of recycled steel despite a 5.8% drop, while India increased imports by 18%. Other regions showed mixed trends, with higher imports in Pakistan, the EU-27, the USA, and Thailand, and declines in Vietnam, Taiwan, and South Korea.

According to BIR, the EU-27 continued as the top recycled steel exporter in early 2025, despite a 2.8% fall to 8.304 million tonnes, with Turkey and Egypt as main buyers. The USA remained the second-largest exporter, although shipments dropped 16.6% to 6 million tonnes. Exports from Japan, Mexico, and Singapore increased, whereas the UK, Canada, Australia, and Hong Kong posted declines. Major net exporters recorded surpluses of 5.8 million tonnes for the EU-27 and 3.8 million tonnes for the USA.

Analysts note that the data reflects a global steel market under pressure, while emerging markets such as India and Turkey show growth potential. Recycled steel remains essential for green steelmaking amid tighter environmental regulations and global carbon reduction targets. Early 2025 figures underline its strategic importance, even as regional usage patterns diverge.

Source: Bureau of International Recycling (BIR)

SUNSHINE Spotlight: The decline in global recycled steel usage in the first half of 2025 highlights the shifting dynamics in steel production, with emerging markets like India and Turkey showing resilience amidst broader regional slowdowns.