Industry Leaders Discuss AI, Market Shifts and Sustainability at BIR World Recycling Convention 2026
Recycled steel is increasingly emerging as a strategic resource for the global steel industry, according to discussions held during the Ferrous Division meeting at the ongoing BIR World Recycling Convention & Exhibition in Gothenburg, Sweden.
Speaking at the divisional meeting on June 1, BIR Ferrous Division President Shane Mellor of Mellor Metals Ltd highlighted the challenges facing global ferrous markets, including geopolitical instability, energy disruptions, protectionist policies, freight volatility and changing trade dynamics.
According to Mellor, these developments have reshaped steel flows and market sentiment across international markets.
Recycled Steel Moving Beyond Secondary Raw Material Status
Mellor noted that recycled steel is no longer viewed solely as a secondary raw material but is increasingly recognized as a key component in the transition toward lower-emission steel production.
He stated that recyclers will need to adapt to geopolitical uncertainty, fragmented trade patterns, evolving supply chains and stricter quality requirements. He added that recyclers are becoming strategic partners within the global steel value chain and that recycled steel is expected to play a growing role in shaping the industry’s future.
Market Trends and Structural Shifts
During a session titled “Recycled steel: the strategic driver of the 2050 steel industry?”, keynote speaker Tom Cheesewright examined several trends affecting the future of ferrous markets.
Cheesewright noted that the current market environment presents mixed signals. While electric arc furnace production continues to expand and demand for advanced electrical steel remains strong, global trade is being affected by conflicts, tariffs and broader economic disruptions.
Infrastructure Development
Cheesewright pointed to differing infrastructure trends across countries. Some nations with declining populations are focusing on rebuilding and modernizing existing infrastructure, while others with growing populations continue investing heavily in new development.
India was highlighted as a country pursuing infrastructure expansion while seeking to adopt more advanced technologies rather than relying on older construction methods.
Automotive Sector Changes
The automotive industry was identified as another area of transformation. Cheesewright noted that vehicles are remaining in service longer than expected, which may reduce the volume of end-of-life vehicles available for recycling.
As a result, automotive scrap could become a declining source of recycled steel in the future, while growing quality requirements may increase recycling complexity.
Artificial Intelligence in Steel Production
Artificial intelligence (AI) was also identified as a significant factor influencing steel production and recycling.
Cheesewright cited ArcelorMittal’s use of AI across multiple business functions, including the development of new steel formulations. According to him, AI has reduced the time required to bring new steel products to market and has enabled greater use of lower-quality recycled materials through improved optimization.
He added that AI is already affecting the supply of recycled steel generated from manufacturing processes.
Industry Panel Discusses Technology Adoption
A panel discussion moderated by George Adams, CEO of SA Recycling, explored the impact of AI and emerging technologies on the recycling sector.
Panel participants included Tom Cheesewright, Adam Szewczyk of the World Steel Association, Sanjay Mehta of MTC Business Private Limited and President of the Material Recycling Association of India, and Denis Reuter of TSR Group GmbH & Co. KG.
Mehta explained that India is adopting a hybrid approach in which technology complements rather than replaces labor. He noted that new technologies are being used to improve operational efficiency and product quality, including within recycling operations.
Reuter said AI has proven particularly valuable in administrative functions, helping companies identify patterns and correlations within large datasets that may otherwise remain unnoticed.
The discussion also addressed robotics and automation. Cheesewright suggested that advances in humanoid robotics could increasingly support difficult and potentially hazardous tasks within recycling facilities.
Participants also discussed the possibility of AI helping bridge quality assessment gaps and enabling greater utilization of lower-grade recycled steel materials.
Global Steel Recycling Data Highlights Sustainability Impact
During the meeting, BIR Ferrous Division Statistics Advisor Rolf Willeke presented findings from the 17th edition of World Steel Recycling and Figures.
Although global steel production declined again last year, steel production through electric arc furnaces continued to increase.
Willeke reported that both imports and exports of recycled steel declined, reflecting more challenging market conditions.
China remained the world’s largest user of recycled steel despite lower steel production levels. Turkey retained its position as the leading importer of recycled steel, while the EU-27 remained the largest exporter.
India continued to strengthen its position as a major producer of steel and direct reduced iron while also increasing its consumption of recycled steel.
According to Willeke, approximately 630 million tonnes of recycled steel are used annually in global steel production. This usage prevents around 950 million tonnes of CO₂ emissions while also reducing energy consumption and conserving natural resources.
