US Domestic Ferrous Scrap Consumption Climbs in 2024
The consumption of ferrous scrap and direct reduced iron (DRI) in the United States saw a notable increase in 2024, signalling continued reliance on recycled steel and alternative raw materials in the steel manufacturing process. According to estimates from the U.S. Geological Survey (USGS), U.S. mills and iron foundries consumed approximately 63 million tons of ferrous scrap in 2024, marking a 1.6% rise from the 62 million tons used in 2023. This uptick reflects the steel industry’s ongoing efforts to optimise production processes while capitalising on recycled material sources.
The domestic ferrous scrap consumption figures stand in contrast to the U.S.’s export performance. The USGS reported that about 15 million tons of ferrous scrap were exported in 2024, a 6.25% decline from the 16 million tons shipped in 2023. This drop is indicative of shifting global demand dynamics and potentially increasing domestic consumption needs. In addition to recycled scrap, U.S. steel producers increasingly turned to direct reduced iron (DRI) as an alternative raw material. The use of DRI rose by 7.1%, reaching 7.5 million tons in 2024, up from 7 million tons the previous year. This surge in DRI usage underscores the broader trend of diversification in raw material sources to meet the growing steel production needs.
The scrap collected in the U.S. during 2024 was predominantly post-consumer scrap, which made up approximately 58% of total scrap, followed by new scrap at 24%, and home scrap from mills at 18%. The overall recycling rates for key materials remained high, with structural steel from construction and demolition projects reaching an impressive 98% recycling rate, further demonstrating the U.S.’s strength in utilising recycled steel. However, despite the rise in consumption, the average value of No. 1 heavy melting steel (HMS) scrap saw a slight dip, decreasing by 3.2% to $327.64 per ton in the first 10 months of 2024 compared to $338.63 per ton in 2023. This reduction in average pricing indicates the volatility in the scrap market despite increased domestic consumption.
Internationally, Turkey remained the leading destination for U.S. ferrous scrap, accounting for 30% of total exports, with Mexico and Bangladesh following closely behind at 14% and 13%, respectively. In terms of imports, Canada was the top source, accounting for 71% of U.S. scrap imports, followed by Mexico, the Netherlands, and Sweden. Overall, 2024’s data points to a stable, albeit slightly contracting, global market for scrap with growing domestic consumption in the U.S. This reflects a broader trend of increasing steel recycling, driven by both economic factors and regulatory pressures, as the industry continues its transition toward more sustainable production practices.
