Why Is the Shipping Volume of Steel Scrap So High in Maritime Transport?

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I. Core Reasons for High Maritime Shipping Volume of Scrap Steel

1. Geographical Mismatch Between Resource Distribution and Steel Production Capacity
   Scrap steel is mainly derived from scrapped automobiles, buildings, and machinery, with its generation highly correlated with industrialization levels: Developed countries such as the United States, Japan, and the EU generate over 300 million tons of scrap steel annually, with mature recycling systems. In contrast, steel smelting capacity is concentrated in developing countries with strong resource demand, especially China (the world's largest steel producer, accounting for 57% of global crude steel output in 2023) and India. These countries import scrap steel to make up for the gap in iron ore resources. For example, China imports over 20 million tons of scrap steel annually, 70% of which comes from the United States and Japan. This pattern of "recycling in developed countries, smelting in developing countries" inevitably relies on maritime transport for transoceanic shipping.
2. Driven by Both Cost and Environmental Benefits in the Steel Industry
   Compared with steelmaking from iron ore, using scrap steel can reduce energy consumption by 60%, water pollution by 70%, and solid waste by 90%, with a cost reduction of approximately $150 per ton of steel. Driven by "dual carbon" goals, global steel enterprises are accelerating the shift to short-process steelmaking (using scrap steel as raw material). In 2023, the global proportion of scrap steel in steelmaking reached 32%, a 10-percentage-point increase from 2010. For instance, Tata Steel in India increased its scrap steel usage from 20% to 40% to reduce carbon emissions, importing over 8 million tons of scrap steel in 2023, almost all shipped from Europe. This dual demand for cost reduction and environmental protection directly boosted shipping volume.
3. Advantages of Maritime Transport in Scale and Economy
   Scrap steel is a low-value-added bulk commodity, highly sensitive to transportation costs. Maritime transport, with its large single-vessel capacity (Capesize bulk carriers can load 150,000-200,000 tons) and low unit freight (approximately $30-40 per ton on trans-Pacific routes, only 1/5 of railway transport), is the preferred choice for long-distance transport. Additionally, scrap steel can be compressed into bales (density increased to 3-4 tons/cubic meter), adapting to the cargo hold utilization of bulk carriers, and its resistance to seawater corrosion reduces transportation losses, further enhancing the adaptability of maritime transport.
4. Trade Policies and Demand for Supply Chain Stability
   Some countries guide scrap steel trade through policies: The EU exempts scrap steel exports from tariffs, promoting resource flow to regions with concentrated smelting capacity; China implements lower import tariffs on high-purity scrap steel to encourage imports of high-quality scrap. Meanwhile, to avoid the impact of iron ore price fluctuations on production, steel enterprises lock in scrap steel supply through long-term agreements. For example, POSCO in South Korea signed a 5-year supply contract with U.S. scrap recycling companies, ensuring 100,000 tons of monthly scrap steel shipping volume. This contractual trade forms stable transportation demand.

II. Major Global Scrap Steel Exporting and Importing Countries (2023 Data, in Million Tons)