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Today, environmental protection is one of the main goals of all activities and businesses aiming at sustainability, stability and community value. In addition to ways such as limiting the use of plastic and not littering, recycling steel is also one of the solutions that many people trust, especially in the construction industry. In this article, MRS Steel will analyze efforts to reduce the environmental impact of steel products throughout its life cycle of steel, from raw material exploitation to end-of-life stage.1. Recyclability of construction steelSteel is one of the most recycled materials in the world with 93% of all structural steel capable of being recycled into new products without losing its inherent properties, while only 8% of plastic is recycled. When using recycled steel, the production process can reduce electricity consumption by 80% compared to completely new production, while also reducing environmental impact and completely eliminating the exploitation of raw materials.During the life cycle of steel, materials are recycled and used in many large and small projects with the construction method of prefabricated steel frames. This is a construction solution chosen by many investors because of its outstanding advantages such as saving time, labor costs, shortening the disassembly and assembly process,...2. What is the life cycle of steel?By understanding the life cycle of steel, we can take advantage of its infinite reusability to create sustainable economic and environmental values.Collecting raw materialsFor recycled steel, you can find sources such as factories, shipyards, large construction projects, ships,... around the world. This process also includes classifying and separating scrap steel from mixed materials so that the recycling process takes place quickly, minimizing residue. Steel productionSteel factories focus on two common production processes: producing steel from iron ore in blast furnaces or from scrap in electric arc furnaces. With advanced technological improvements in production lines, CO2 emissions are reduced during the production phase.Recycling leftover productsDuring the steel production process, there will be surplus products that can be reused such as slag, iron scrap,..., which act as a substitute for some raw materials, used for the next production stages. This both reduces waste into the environment and saves significant costs and time for production processes throughout the life cycle of steel.Production of finished productsHigh-strength steel has superior properties compared to conventional steel structures because of its extremely good durability, impact resistance and corrosion resistance. Therefore, projects that require high bearing capacity such as factory frames, warehouse steel frames, cars,... often use high-strength steel to consume less material, optimize weight while still ensuring durability, safe in use.Steel recyclingFinally, steel returns to its life cycle as post-consumer scrap. At this point, it has already finished its first life cycle and is ready to be recycled to begin the life cycle of new steel.Steel is an industrial material that is recycled many times but still retains its properties, so there is no need to worry about reducing durability and safety when used for projects. Steel recycling not only contributes to reducing industrial waste in the world and protecting the environment, but is also a cost-effective solution for investors. Thus, steel scrap can be 100% recyclable and continues to exist forever throughout the life of the steel.3. Some examples of the life cycle of steelSteel is not only an environmentally friendly material but also an economical construction solution. The structures themselves can be constructed from many different types of recycled steel. Let's consider with MRS Steel which common applications best represent the life cycle of steel.AutomobileMost of the car's structure is made from steel, so after long-term use, even though the car loses its usability, it can still be recycled. Currently, automotive steel is the largest source of recycled steel in the United States. After processing, this material continues to be used in the automobile manufacturing industry with durability and an average lifespan of up to 15 years.Packaging and containersOne of the most common uses of steel that few people know about is packaging of goods. Food, wine, paint, crude oil, etc. are often preserved and transported in steel tanks to ensure product safety and quality when it reaches the user. Recycled steel is not only used to make containers, belts, etc., but can be manufactured into large containers and then recycled during the life of the steel to make other applications.Steel structureThe use of wood as a building material can deplete natural resources, cause environmental disasters and cannot be recycled or recovered. Wood structures also generate more industrial waste, so steel structures are becoming increasingly popular in housing construction. Not only do they bring modern, sophisticated, cost-effective aesthetic beauty, but steel buildings can be completely recycled after they stop being used.Infrastructure projectBesides housing, steel is also the main material for projects such as bridges, roads, railways, silos, tanks,... Thanks to its high strength, steel is used for frames or roofing, providing high durability and ability to bear large loads. These structures, after long periods of use, may become degraded or need to be removed. At this time, steel materials can be recycled and used as materials for completely new projects, starting a circular steel life cycle.

Steel is one of the most common materials in the world as it appears everywhere from skyscrapers to a presence in consumer goods daily. There have been some questions about whether the depletion of steel raw materials will occur, in fact, steel has an endless recycling capacity and manufacturers took advantage of “steel recycling” method to produce steel for a long time.The position of steel recycling in the eco-friendly manufacturing trendingEnvironmental protection has always been a top concerned topic when the climate is clearly changing, which has seriously affected the ecosystem. In addition to some measures preventing environmental waste such as limiting the use of plastic and not littering, the application of steel recycling is a solution that brings optimized cost along with saving resources.Steel recycling brings endless value to the economy because it is conservation and is a radical solution to wasting resources. Because steel has metallurgical properties, meaning that it can be melted and solidified later. Let's think about how millions of tons of scrap steel each year, instead of being discharged into the environment, are melted down to continue to be used for the manufacturing industry. According to statistics, steel is the most recycled building material in the world with about 40% of total steel production based on scrap recycling.The benefits that steel recycling brings to eco-friendly economySteel recycling creates an endless ring An interesting fact about steel is that they can be recycled consecutively without losing their inherent durable properties. The iron elements in steel cannot be destroyed, so the manufacturer will proceed to melt the steel and add some other alloying elements to create new steel products. Just like that, the life cycle of steel repeats continuously and helps many businesses optimize costs in exploiting materials for production.Saving energy & natural resourcesRecycling steel allows people to better protect natural resources as the energy used in recycled steel will be much less than making steel by blast furnace production. For each ton of recycled steel, 1 ton of iron ore and 600 kg of coal are saved. Moreover, the energy saved from steel recycling can be used for more than 18 million households in 1 year.Reduce wasteThanks to recycled steel, the area for landfill has been significantly reduced because scrap collection is the first process to be able to recycle steel. Every year, the world produces an average of 1 billion tons of steel and without recycling methods, the world's waste will have no place to be.Decreasing emissionsAccording to research, every 1 ton of steel produced from ore is equivalent to releasing 100 kg of dust and 10,000m3 of emissions to the environment because producing steel from ore requires a lot of coal and the ore itself contains only 50% of iron. Meanwhile, scrap steel contains up to 97% of iron, so recycling through scrap steel can significantly reduce emissions to the environment and help businesses save costs of input coal.Create more jobs and income for people: the steel recycling industry has been creating jobs for hundreds of thousands of people around the world by collecting scraps or conducting sorting in recycling plants .Thanks to that, the number of unemployed people will be reduced and social evils will be limited.Currently, Vietnam is also one of the countries that have policies on greening in production and more Vietnamese businesses have begun to pay attention to the promotion of recycling. For example, Hoa Phat has built a blast furnace slag recycling plant to produce cement, they also invested in a heat-to-electricity conversion line to prolong the added value chain, reduce waste treatment costs and protect the environment.Recycling steel is now considered a very viable option for the economy because it helps to conserve energy, supports businesses in proactively having available input materials when there is no need to exploit natural materials.

According to the latest data from the General Department of Customs of Vietnam, Vietnam's scrap steel imports volume in the past November unexpectedly reached 392,189 tons, a 25.8% increase compared to the previous month (over 312,000 tons of scrap in October). Cumulatively, in the 11 months of 2023, the total imported scrap amounted to 3.87 million tons, experiencing a slight decrease of 2.2% compared to the same period last year (3.96 million tons).Japan remains be the largest supplier of scrap steel to Vietnam in 2023Japan has consistently maintained its position as the primary provider of Vietnam scrap steel imports since 2018. In November alone, Japan supplied Vietnam with 212,438 tons of scrap steel, a remarkable increase of 241.4% compared to the same period last year. For the cumulative 11 months of 2023, the imported scrap volume from Japan reached over 1.436 million tons, constituting more than 40% of Vietnam's total scrap steel imports. In comparison to the same period last year, the import volume for the first 11 months of this year increased by 16%. Notably, Vietnam has focused on sustaining and enhancing its supply of scrap steel from Japan, despite the upward trend in scrap steel prices from Japan, which, as of December 2023, has reached $348 per ton in export prices.The imported scrap steel volume of Vietnam from January to November 2023Besides Japan, the United States stands as the second-largest market with a consistently high volume of scrap steel imports each month. Specifically, in November, Vietnam imported 48,515 tons of scrap steel from the United States, marking a 30.9% increase compared to the same period last year. Overall, for the first 11 months of 2023, the import volume of scrap steel from the United States reached 874,693 thousand tons, showing a slight 3% increase compared to the same period in 2022.Additionally, in the list of primary suppliers of scrap steel to Vietnam in November, Hong Kong and Australia were also notable contributors, with volumes reaching 38,874 tons (a 49% increase compared to the same period) and 9,265 tons (a remarkable 241.4% increase compared to the same period last year), respectively. In the first 11 months of 2023, Hong Kong's total export volume of scrap steel to Vietnam reached 377,303 tons, experiencing a slight 1.2% decrease compared to the same period last year. Similarly, Australia's supplied volume of scrap steel to the Vietnamese market for the first 11 months reached 236,266 tons, reflecting a 16% decrease compared to the same period.The demand for Vietnam’s scrap steel imports is expected rise in DecemberThe unexpected surge in scrap steel imports has been surprising, given that Vietnamese steel producers have largely maintained stable scrap imports over the past 10 months due to a prolonged slowdown in the domestic real estate sector. While some factories have reduced capacity and prioritized domestic scrap sourcing, larger-scale facilities continue to require substantial raw material imports. These factories anticipate a resurgence in steel demand after the lunar holiday, contributing to the anticipated growth in scrap steel imports in December. Another factor contributing to the increase of Vietnam's scrap steel imports comes from the country's recent open foreign policy. Many steel items, especially imported scrap steel, have seen a significant surge, partly to meet the needs of Vietnamese manufacturers and also due to the advantages of enjoying a 0% tax rate coupled with the removal of trade protection measures.The substantial increase in import demand has positioned Vietnam as a significant player in the global scrap steel import market this year. This strategic move not only helps meet domestic demand, especially for large-scale steel plants requiring extensive raw materials to maintain production and capacity stability, but also serves as a strategy to strengthen Vietnam's position in the international steel market. Through this approach, Vietnam can demonstrate its strength and competitiveness in the field of raw materials and steel production.

In November 2023, both production and consumption in Vietnam's steel industry experienced growth. Specifically, nationwide steel sales reached over 2.5 million tons, marking a 30% increase compared to the same period last year and reaching the highest level since the beginning of the year. Meanwhile, finished steel production reached 2.4 million tons, reflecting a 34.4% increase compared to the same period.The Vietnam Steel Association (VSA) reported an improvement in the consumption of finished steel in the domestic market in November compared to the previous month and the same period last year for most steel manufacturing and trading enterprises. In particular, sales of various steel types reached over 2.5 million tons, up 13% from the previous month and 30% compared to the same period in 2022. The growth in steel consumption has been consistent over several months, signaling a recovery for the steel industry. Meanwhile, the production of finished steel during this period amounted to 2.4 million tons, up 3% from October and 34.4% compared to the same period last year.In the first 11 months of the year, the steel industry produced 25 million tons of finished steel, down by 7.8% compared to the same period last year. Steel consumption reached 23.7 million tons, declining by 5.6% compared to the sales volume in the first 11 months of 2022. Specifically, steel exports during this period amounted to 7.4 million tons, marking a 29% increase compared to the same period.Hoa Phat, a leading enterprise in the steel industry, observed its highest sales volume since the beginning of the year. Specifically, sales of construction steel, hot-rolled coil (HRC) and steel billets reached 709,000 tons, marking a 12% increase from October. Notably, sales of high-quality construction steel by Hoa Phat during this period reached 410,000 tons, indicating a 21% surge compared to the same period last year.The company's representative stated that the domestic steel industry is on the rise due to the beginning of the construction season and is partly driven by policies encouraging the disbursement of public investment capital. According to the assessment by VSA, the sales volume of construction steel has increased, partly due to infrastructure projects such as the North-South expressway and the ongoing development of new airports, which have accelerated progress alongside several other projects.The steel industry has experienced significant price fluctuations in recent months, with steel companies continuously adjusting prices upward from November onwards. According to VSA, the consistent price hikes in steel are primarily due to the rising costs of raw materials used in steel production such as coal, iron ore, scrap steel and hot-rolled coils, showing no signs of slowing down.The selling prices of finished steel have been increasing at a slower pace compared to the rising costs of raw materials. This is one of the difficulties that the steel industry is facing.In the upcoming period, the price of this commodity is forecast to continue rising due to a narrow supply of iron ore, while construction demand is expected to increase. This will be an opportunity for the steel industry and steel stocks in 2024.

Scrap steel is an important raw material used in production, especially with the recent strong trend of environmental protection. In 2023, the scrap steel consumption showed unfavorable indices; however, simultaneous forecasts consistently indicate the industry's recovery and growth in the coming years.Global scrap steel consumption overview 2023According to the Bureau of International Recycling (BIR), the global market for scrap steel consumption faced challenges in the first half of 2023, experiencing decreased consumption across various countries and major regions compared to the same period last year. Additionally, global scrap imports in the first half of the year decreased by 8%, totaling 27 million tons compared to 2022.The decline in global scrap steel consumption and imports is directly related to the reduction in steel production this year, as the primary purpose of utilizing scrap steel comes from manufacturing. Specifically, global steel production in the first half of the year decreased by 1.1%, reaching 943.9 million tons. Significant regions experienced even more negative indices, notably with EU steel production dropping by 10.9% from January to June, and North America showing a 3.5% decline.Despite a 2.9% decrease in the utilization of scrap steel, China remains the largest consumer of scrap steel in the first half of 2023, reaching 116.2 million tons. Similarly, the top three countries leading in scrap steel import volumes in the first half of 2023 were Turkey at 9.6 million tons (a 22% decrease compared to the same period), followed by India at 5.25 million tons and the United States at 2.5 million tons.Notably, Turkey, previously a significant consumer of scrap steel (30 million tons in 2022), experienced a 16.4% decrease in scrap steel imports in the first nine months of 2023, reaching only 14.1 million tons. Reports indicate that the majority of Turkey's scrap steel imports were sourced from the EU. However, since 2022, Turkey's consumption of scrap steel has declined due to domestic demand and challenges in flat steel exports amidst increasing inflation and a depreciating lira.Scrap steel consumption prospects in coming yearsAmidst the global steel industry's focus on reducing carbon emissions from steel production, scrap steel is viewed as a strategic raw material to achieve carbon neutrality among steel manufacturers. Using scrap steel in electric arc furnaces (EAF) is the most straightforward approach to reducing CO2 emissions.Presently, increasing investments and EAF usage signify optimistic future consumption trends for global scrap steel. The current percentage ratio between basic oxygen furnace (BOF) and EAF steel production stands at 70/30. However, predictions suggest a shift to 60/40 by 2030. The EU is preparing to include scrap steel in the list of strategic raw materials in the green steel production trend. According to the International Rebar Producers and Exporters Association (IREPAS), EAF proportions in steel production in Europe, currently at 43.7%, are anticipated to significantly increase in the next 3-5 years.China also aims to enhance scrap steel utilization in production to reduce reliance on imported iron ore and lower carbon emissions. According to the Ministry of Industry and Information Technology (MIIT), the country could achieve EAF capacities of 100-200 million tons by 2030. The growth in scrap steel consumption is estimated to surge, from 260 million tons in 2022 to over 350 million tons by 2030.As of now, the EU remains one of the largest exporters of scrap steel, with approximately 9 million tons exported in 2023. However, some viewpoints suggest that the shifting production trends among European steel suppliers may transform the region into a primary scrap steel importer within the next 5 years. This could increase the demand for imported scrap steel to serve new production processes, transitioning the region from an export-driven role to a scrap steel importer.It is evident that in the near future, most countries will prioritize domestic scrap steel consumption rather than exports. However, current scrap collection rates fail to meet annual production needs, prompting countries to compete in accessing scrap steel sources through recycling initiatives or imports from other nations. This trend could simultaneously create new opportunities for countries to advance recycling industries and establish cleaner and more efficient steel production processes in the future.

India's target to double its steel production capacity to 300 million tons by 2030 may face difficulties due to recent restrictions on scrap steel exports by the European Union. This move could directly disrupt the Indian steel industry as the country hasn't developed a strong recycling industry and relies heavily on imported scrap steel for production.The production capacity of Indian steel industry facing limitations by shortage of scrap steel supplyIndia is currently the world's second-largest producer of crude steel after China, with 124.7 million tons of crude steel in 2022. In a conference in February 2023, the Indian government set the target of increasing steel production capacity to 300 million tons by 2030. "The current 15% scrap usage will increase to nearly 25% within the next 5 years, meaning that the proportion of scrap used in steel production will increase to 50%," as stated by the Indian Steel Minister in the MRAI Material Recycling Conference 2023.Analysts predict that India's ambitious production growth target will lead to a significant demand for scrap materials. Specifically, by 2030, the demand for scrap materials is projected to reach 65 million tons per year, while the domestic scrap supply at that time is only 59 million tons per year. This raw material shortage will force the Indian steel industry to rely more on imported scrap materials to fill the gap.Forecast chart of India's scrap steel consumption demand until 2030Therefore, in 2021, the government attempted to expand the scrap steel industry by utilizing vehicles. Specifically, vehicles over 20 years old had to undergo emissions tests, and if they failed, they were recommended for disposal and used as a source of scrap steel for the manufacturing industry. Implementing the policy of collecting scrap steel from vehicles could provide the steel industry with an average of 6 million tons per year. While the policy may address recycling supply needs, in the long term, it has not achieved effectiveness because most recycling infrastructure in India is still in its early stages, and there are still very few old vehicles available for disposal.The new challenge comes from the import of scrap steelTo enhance the supply of scrap steel for production, the current import plan is considered the most feasible approach while the number of steel recycling plants in the country is being limited. In 2022 alone, India spent over 12 billion USD on importing metal scrap, and within the next 5 to 6 years, India is expected to become the world's largest importer of scrap steel, with imports reaching approximately 20 million tons by 2030. Currently, India is ranked as the second-largest scrap steel importer in the European Union, as well as in the United States, Asia, and the Middle East.Top Indian exporting scrap steel countries in the first 6 months of 2023However, India's ambitious import plan to expand steel production is facing several challenges. The European Union, a significant market for supplying scrap steel to India, is considering imposing restrictions on the export of metal scrap to reduce emissions and protect the environment. Additionally, major scrap steel exporters like the United States, Asia, and the Middle East are also contemplating export restrictions to preserve this valuable resource. Import barriers for scrap steel have hindered the Indian steel industry’s target to double its steel production capacity, forcing steel producers to search for alternative supply sources.The Indian steel industry is confronted with numerous challenges in addressing the scrap steel supply issue due to strict scrap steel export policies from the European Union. Nevertheless, the country is working on improving its recycling capacity by building a series of steel recycling plants starting in 2021. Although there are still many obstacles to increasing production capacity, India continues to seek new opportunities to expand its steel industry.In recent years, trade relations between Vietnam and India have been strengthening, particularly in the steel sector. India is considered a potential export market for Vietnam, with increasing demand for scrap steel and hot-rolled coils (HRC). In the first 9 months of 2023, India unexpectedly became the second-largest importer of HRC from Vietnam, with a production volume exceeding 386,000 tons. Based on infrastructure construction needs and the ambition to secure raw materials for production from India, the Vietnamese steel industry expects to expand its export market in the future, especially with HRC being one of its key products.