Steel is the most recycled material in the world and almost all the steel available right now is recycled. While iron ore is the primary source of steel production, recycled or reused steel comes next. There is a global increase in steel production using scrap as the main raw material fuelled by calls to conserve vital natural resources.

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To translate it into actionable numbers, every tonne of steel scrap that is recycled saves 1.1 tonnes of iron ore, 630 kg of cooking coal and 55 kg of limestone.

What is steel scrap recycling?

Steel scrap recycling plants are primarily characterised by huge electric furnaces into which scrap steel is fed for producing high-quality steel. But before scrap can be fed to the furnace, it is important to ensure its quality. Without high quality scrap steel, there are chances of impurities being present, which in turn can compromise the quality of the end product.

With the inclusion of processing centres, balers, and shredders, the quality of scrap steel has improved.

Steel scrap recycling in India

The Indian steel industry typically has a vast network of unorganised, small steel producers who use steel scrap and other material for steel production.

The quality of the scrap is pivotal for its utility in steel production and its importance was addressed in the Ministry of Steel’s 2019 report, 'Steel Scrap Recycling Policy.'

The report identified two main factors essential for the growth of India’s steel industry.

The availability of raw material at competitive rates is “imperative for the growth of the steel industry.”

The right quality of scrap in sufficient quantities is “one of the critical factors for future growth.”

The National Steel Policy has a bold vision of 300 million tonnes per annum (MnTPA) steel production in India by 2030. Steel recycling will be essential for this ambitious undertaking.

Tata Steel's initiative

In a step towards achieving this goal, Tata Steel is setting up a 0.5MnTPA capacity steel recycling plant in Rohtak, Haryana.

Describing it as a “definitive green step by Tata Steel towards sustainable steel production and ecosystem,” the plant has been set up in partnership with Aarti Green Tech as a build, own, operate (BOO) partner.

The state-of-the art recycling plant is equipped with a shredder, baler, and a material handler, which can potentially streamline the unorganised scrap supply chain.

They have already begun trials at the plant by flagging off a consignment of ferrous raw materials on July 24.

“Steel recycling through the electric arc furnace (EAF) route is a global trend and going forward, it would become imperative for India’s sustainable growth aspirations. Tata Steel has been pioneering various aspects of the steel industry since its inception in 1907. Steel recycling business is yet another pioneering initiative from Tata Steel to enable circular economy and a sustainable tomorrow,” said Yogesh Bedi, Chief, Steel Recycling Business, Tata Steel.

Also read: Tata Steel expects Indian steel prices to hold; Koushik Chatterjee lauds new scrappage policy

The scrap will be sourced from multiple market segments like industrial, construction, end-of-life vehicles and household scrap.

The steel produced in the plant would be through better resource utilisation and lead to low carbon emissions, and would eventually reduce India’s dependency on imports.

Global steel recycling

The Bureau of International Recycling’s report ‘World Steel Recycling in Figures’ shows an increase in overall crude steel production and steel scrap usage.

“In 2019, there was an increase to around 491 million tonnes in the amount of steel scrap used by key countries and regions (+3.6% compared to the previous year), while related crude steel production was around 1.533 billion tonnes,” the report said.

Globally, around 630MT of steel scrap is recycled annually, which means reducing annual carbon emissions -- which would otherwise have resulted from the production of virgin steel -- by around 950MT.

The report emphasises that steel recycling saves energy and precious natural resources, ultimately contributing to the fight against climate change.

The report also mentions India as the world’s second largest steel scrap importer, up 11.4 percent, or a little over seven million tonnes.

(Edited by : Shoma Bhattacharjee)

First Published:Aug 19, 2021 5:30 PM IST