Kuusakoski board member Toomas Kollamaa said that for this the industry in turn must create new jobs, eliminate obsolete ones, adopt new laws and find financing for all this. 2024 is key here.
According to Worldsteel, by 2050 global demand for steel will increase by 30% compared to today, which means that production processes will change radically to reduce CO2 emissions. In the previous newsletter we talked about why people are switching to electric arc furnaces. Currently, 72% of steel is produced in blast furnaces, the most polluting way to produce steel. Is there enough waste in the world to make change happen quickly? No it is not. According to UK Steel, the global scrap metal market currently stands at 600-650 million tonnes, but demand will increase to 800 million tonnes by 2030 and almost a billion tonnes by 2050. We can only imagine the effect of deficit on scrap prices.
Many countries have therefore already taken measures to secure the supply of steel scrap. The EU plans to introduce changes to the Waste Shipments Regulation next year to curb environmental problems associated with scrap metal exports. This means restrictions on the export of scrap metal. But this also means pressure on prices. Everyone is looking for alternative energy for production at a reasonable price: natural gas, electricity, hydrogen… Companies located in Northern Europe are at the forefront here. This is a real challenge, the realization of which will change the entire world economy.
Large companies such as furniture makers IKEA or car manufacturers such as Volvo, Mercedes and Porsche are already purchasing ever-increasing quantities of so-called low-carbon green steel and stipulating contractual terms. This situation is rapidly expanding and 2024 will be the solstice here.”
The size of the Estonian scrap metal market is 350,000-400,000 tonnes per year. AS Kuusakoski is Estonia’s largest recycling service provider, recycling around half of Estonia’s scrap metal. Kuusakoski has 12 open service points across Estonia: in Haapsalu, Jõhvi, Narva, Paide, Paldiski, Pärnu, Rakvere, Rapla, Tallinn, Tartu, Viljandi and Võru.
Let’s say that the price of a ton of scrap vehicle has increased by a tenth in a month, reaching today 240 euros.
2023-12-26 15:09:00
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