Bureau of International Recycling (BIR): Recycled steel will become the strategic cornerstone of the future steel industry.

　 　Bureau of International Recycling (BIR): Recycled steel will become the strategic cornerstone of the future steel industry.

Shane Mellor, Chair of the Ferrous Sector at the Bureau of International Recycling (BIR), stated that recycled steel is increasingly viewed as a strategic resource, rather than merely a secondary raw material. Speaking at the sector’s latest meeting in Gothenburg, Sweden, Mellor noted that the global steel industry is entering a phase in which recycled steel will play a pivotal role in decarbonization and long-term competitiveness.
　　According to Mellor, the first half of 2026 has underscored the global black market’s vulnerability to geopolitical instability, disruptions in energy supplies, freight-rate volatility, protectionist policies, and shifts in trade flows. These factors have significantly reshaped the global steel‑trade landscape and market sentiment.
　　Despite these challenges, Mellor emphasized that recycled steel is increasingly seen as a key component of truly green steel production. He stated that recyclers will evolve from raw-material suppliers into strategic partners supporting the steel industry’s transformation. “The steel industry of the future will not only rely on recycled steel but will also be increasingly shaped by it,” Mellor said.
　　At the conference titled “Regenerative Steel: A Strategic Driver for the Steel Industry by 2050?,” keynote speaker and applied futurist Tom Cheesewright examined several long-term trends expected to shape the steel market over the coming decades.
　　Cheesewright notes that infrastructure demand is increasingly shaped by demographic trends. Countries experiencing population aging or decline are focusing on replacing and modernizing existing infrastructure, while rapidly growing economies continue to require large-scale new construction projects. India has been highlighted as a particularly important market due to its ambitious infrastructure development plans. According to Cheesewright, the country aims to expand its infrastructure while avoiding reliance on outdated technologies, thereby creating opportunities for advanced steel production and recycling solutions.
　　The automotive industry is also undergoing structural changes, which could impact future scrap steel supplies. Cheesewright notes that vehicles are being used for longer than previously anticipated, potentially reducing the number of new cars entering the market and slowing the generation of end-of-life scrap. At the same time, the industry’s increasingly stringent quality requirements are expected to heighten the complexity of steel recycling processes. Nevertheless, Cheesewright anticipates that vehicle manufacturing will not shift from steel to aluminum on a large scale. Consequently, the evolving automotive landscape may diminish the sector’s reliance on recycled steel feedstock while underscoring the growing importance of advanced processing technologies capable of meeting stricter quality standards.
　　Artificial intelligence has emerged as one of the central topics of discussion. Cheesewright highlighted AI’s growing adoption across the steel industry, citing ArcelorMittal as an example of a company that integrates advanced digital technologies throughout its operations. According to Cheesewright, AI has significantly accelerated the development and commercialization of new steel grades, reducing development timelines to roughly one-fifth of their previous duration. The technology is also helping steelmakers optimize scrap‑procurement strategies and increase the utilization of lower‑quality recycled materials. These advances could have a substantial impact on the recycling sector, as AI‑driven improvements in material analysis, sorting, and quality assessment may enable greater use of lower‑grade scrap while maintaining product‑quality standards.
　　Tom Bird, the former chairman of BIR, stated that AI could ultimately help bridge the gap between high‑quality and low‑quality scrap steel assessments, unlocking additional recycling potential. Other industry stakeholders concur that, as digital technologies mature, such advancements are becoming increasingly feasible.
　　In response to broader discussions, Mellor noted that market participants typically focus on short-term issues such as freight rates, price volatility, and trade flows. However, he believes that the deeper structural shifts currently underway are likely to reshape the steel industry over the next 25 years.
　　Industry representatives also discussed the application of technology across different regions. For instance, in India, digital tools and AI are primarily used to boost productivity and product quality rather than replace labor—a approach that is increasingly being adopted by the recycling sector. While emerging trends such as car‑sharing services may reduce future steel demand in certain applications, participants agreed that these shifts could also generate new opportunities throughout the value chain.