1. EESC Hearing Shipbreaking and the recycling society EU steel scrap market overview
D. Valenti, Riva FE
Brussels, 3 May 2016

2. Company’s overview
Riva Forni Elettrici SpA Headquarters: Milan (I) Production sites in Italy, France, Germany, Belgium and Spain (+ one scrap yard in Canada) EAF-based steel production (scrap recycling through melting) Products: wire rod, rebar, merchant bars, mesh Workforce: 5000 p Production (2015): 7,4 Mt crude steel (EU Top 5)

3. Company’s overview

4. Production overview Wire rod Reinforcing bar (rebar) Mesh
Merchant Bars

5. Steel scrap in the steel industry
Steel scrap is the EAF steelmaking route’s main raw material but also (by far) its first cost item.
Steel scrap (~65%)
Energy (~15%)
Labour costs (~10%)
Capital costs (including maintenance, ~10%)
Scrap can make up up to 20% of the feed of the BOF steel route (albeit most of it being home scrap)

6. The EU steel scrap market dynamics
Steel scrap consumption relatively stable at 100 Mtpy.

7. The EU steel scrap market dynamics
Surge of exports started in the « booming » years, making the EU scrap market « export-minded ».

8. The EU steel scrap market dynamics
Scrap imports by origin and destination (2015)

9. The EU steel scrap market dynamics
Scrap exports by origin and destination (2015)

10. The EU steel scrap market dynamics
The scrap market is structurally under pressure, scrap prices going up faster than steel prices Scrap is traded globally, the market is driven by the demand in third countries (Turkey)
Source: Platts

11. Steel scrap in the circular economy
Steel is a « permanent material » which can be recycled indefinitely without loss of properties.
Does this unique feature give steel a special place in the EU recycling policy?
Steel scrap can be granted « end-of-waste » status
Not really a success as only one MS (partly) enforces it
EoW criteria already met by EU commercial grade scrap
Less paper work if EoW
Little effect on exports

12. Steel scrap in the circular economy
Is scrap leaving the EU actually scrap?
In which conditions is it treated/consumed?
Issues raised in the EC Steel Action Plan (June 2013):
Prevention of illegal shipments of waste (health and safety issue + economic issue + unfair competition)
Waste treatment certification scheme (public consultation in 2014)
Gap could be filled by a sectoral initiative: sustainable steel certification scheme, responsible sourcing criteria (mandatory vs. voluntary?)

13. Conclusions The EU is a net exporter of steel scrap
Steel mills are price takers, EAF competitiveness is at risk
EU scrap market could be improved:
tackle illegal shipments of waste
ensure that scrap is treated in state of the art installations (along the value chain), also outside the EU
support sectoral initiatives in the matter (sustainability criteria)