Steel Scrap Markets in Europe and the USA

The objective of this paper is to provide an overview of the market for steel scrap (or ferrous scrap) for steelmaking. A simple theoretical discussion of scrap markets is outlined, and it constitutes the basis for a discussion of consumption and supply behaviour, international trade patterns and the development of scrap prices over time and across world regions. The geographical scope is essentially world‐wide, but particular attention is paid to market behaviour and outcomes in Europe and the USA. In pursuing the above, the paper also reviews past research efforts on steel scrap markets and identifies topics for future economic research in the field. It is emphasized that improved knowledge of scrap markets ought to provide important lessons for public policy measures aimed at further increasing steel recycling rates, as well as for environmental impact assessment studies.