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BIR Ferrous Division Session: The Future of Green Steel Driven by AI and Recycled Metals

11/09/2025 13:49
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BIR Ferrous Division Session: The Future of Green Steel Driven by AI and Recycled Metals

The BIR (Breau of International Recycling) Autumn Convention held in Bangkok, Thailand from October 27 to 28, 2025.

During the Ferrous Division session on October 28, 2025, Mr. Shane Mellor, Divisional President at Mellor Metals Ltd (UK)served as chairman. Discussions focused on the latest trends in the steel recycling industry and the practical implementation of AI technologies.

At the opening, Rolf Willeke, BIR Ferrous Statistics Advisor, presented the key findings from the January–June 2025 update of the 16th edition of World Steel Recycling in Figures.

According to data from the report, global crude steel production totaled 934.3 million tons in the first half of 2025 — a 2.2% decline compared with the same period in 2024. This overall slowdown reflects the lingering effects of weaker global demand, particularly in major consuming regions such as Asia and Europe, amid uncertain economic conditions and cautious industrial investment.

From a regional standpoint, Africa stood out as the only region to record year-on-year growth in crude steel production, supported by growing infrastructure projects and regional industrialization efforts.

Asia and Oceania remained by far the largest producer, with 693.9 million tons, although this represented a 1.9% decreaseyear on year. Other regions also posted lower figures:

  • EU-27: 65.4 million tons (-3.3%)
  • Other Europe: 20.8 million tons (-7.1%)
  • Middle East: 27.5 million tons (-5.4%)
  • North America: 53.2 million tons (-0.6%)
  • CIS: 41.6 million tons (-5.4%)
  • South America: 20.5 million tons (-0.4%)

The downward trend across most regions highlights ongoing challenges for the steel industry, including elevated energy costs, fluctuating raw material prices, and slower construction and manufacturing activity in several key markets. Nevertheless, the steady performance in Africa underscores the potential for new growth centers to emerge within the global steel landscape.

As previously explained, the BIR Ferrous Division has adopted the term “recycled steel” in place of “steel scrap” to communicate more effectively with the public and to underscore the material’s vital role in global steelmaking.

Based on calculations by world steel, it is estimated that around 630 million tons of recycled steel are used annually in steel production worldwide. This contributes to the prevention of nearly 950 million tons of CO₂ emissions, while also saving energy and conserving natural resources. The term “recycled steel” therefore not only reflects a shift in language but also highlights its importance in the pursuit of “green” steelmaking.

In the context of green steel production, it is equally important to monitor global trends in the use of direct reduced iron (DRI). Using world steel data for the first time, BIR has identified the world’s largest DRI producers. Global DRI output rose 4.3% year on year in the first half of 2025, reaching 64.24 million tons. India remained the leading producer with 29.201 million tons (+8.7%), followed by Iran with 16.300 million tons (-2.2%).

Meanwhile, recycled steel usage declined in China, the EU-27, the USA, Japan, and South Korea, while India and Turkey recorded increases. China’s crude steel production fell 3% year on year in the first half of 2025 to 514.8 million tons, but its recycled steel consumption dropped more sharply—by 11.4% to 109.01 million tons. Despite this decline, China remained the world’s largest consumer of recycled steel.

Overall, recycled steel usage in key countries and regions amounted to 235.96 million tons in the first half of 2025, down 6.9% year on year. This data covers approximately 76% of global steelmaking.

The share of recycled steel in crude steel production varied significantly by region:

  • China: 21.2%
  • India: 24.5%
  • South Korea: 33.4%
  • Japan: 36.7%
  • EU-27: 60.2%
  • USA: 66.4%
  • Turkey: 87.7%

Turkey’s exceptionally high share highlights the country’s strong commitment to circular and sustainable steelmaking practices, setting a global benchmark for recycled steel utilization.

Following the statistical presentation, Sean Davidson, CEO of Jules AI, turned the spotlight on artificial intelligence (AI) applications at the scrap processing level, illustrating how the integration of robotics and sensor technologies is transforming operations by enhancing on-site efficiency and reducing safety risks.

He shared several tangible examples. AMP Robotics’ robotic arm, for instance, can pick up to 120 bags per minute with 99% accuracy, and is widely adopted for sorting and separating high-value materials such as copper wire. Likewise, AI solutions from companies such as Recycle Eye are being utilized for material classification and quality control, enabling real-time feedback, hazard detection, and improved operational efficiency.

According to Mr. Davidson, the key success factors for effective AI adoption include close collaboration with physical sorting and automation teams and the implementation of multimodal intelligence—an approach that combines visual, sensory, and data-driven learning. These initiatives, he noted, have achieved return on investment within just 12 to 18 months, while simultaneously driving improvements in productivity, safety, cost efficiency, and accuracy in material assessment.

Next, Raghav Mecherei, CEO of Visio AI, took the stage. Leading the U.S.-based firm, he presented the company’s sensor media platform, which integrates AI and X-ray technology to enhance early detection of hazardous material sand improve site safety. He emphasized the growing importance of AI in recycling operations—particularly technologies capable of identifying lithium-ion batteries and other hazardous components before accidents occur. Visio AI’s solution enables instant feedback for on-site workers, supporting the broader goal of advancing the circular economy.

In the subsequent panel discussion for the Ferrous Division, Alberto Zotto of the London Metal Exchange (LME) and Harsha Ramesh of Pillar USA shared practical strategies for navigating volatility in the steel market. Both speakers highlighted that AI applications are no longer theoretical, but are already being used for scrap sorting, classification, hazard detection, and real-time decision support. They noted that early identification of hazardous materials such as lithium-ion batteries is helping the industry improve safety, boost efficiency, and strengthen its contribution to circular sustainability.

 

 

The session demonstrated that the Ferrous Division’s discussions have moved beyond mere statistical analysis—emphasizing practical strategies that balance environmental impact reduction with operational efficiency. While Asia continues to dominate global steel production, the use of recycled steel and AI technologies is increasingly viewed as a key driver of sustainability and competitiveness.

Particular attention was given to Turkey’s growing imports of recycled steel, a trend that industry observers are watching closely. The convergence of AI and recycled steel is expected to accelerate transformation across the steel sector, offering valuable insights for future investment decisions and policy development.

 

 

(IRuniverse Midori Fushimi)

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