EU Scrap from Decommissioned Ships Could Boost Steel Decarbonization

Ship Recycling: A Key Resource for EU Steel Industry

The European Union could unlock millions of tons of high-quality scrap by recycling decommissioned ships. This scrap has the potential to significantly aid decarbonization in EU steel production. Researchers from the University of Tushia, the Belgian NGO Shipbreaking Platform, and Sandbag highlight that only 1% of European ships are recycled domestically. Meanwhile, recycling ships in the EU can drastically reduce CO2 emissions compared to primary steel production.

The report indicates that 70–95% of a ship’s weight can become usable scrap. Analysts forecast more than 700 ships will be decommissioned annually between 2032 and 2036. As a result, annual scrap supply could peak at 12 million tons in 2033, equating to roughly 15% of the EU’s total scrap demand in 2024.

Increasing ship recycling aligns with the EU’s carbon-neutrality goals. By using scrap in electric arc furnaces, steelmakers can cut energy use and emissions while promoting a circular economy. Experts urge policymakers to boost transparency, close regulatory loopholes, and enforce environmental and safety standards.

Challenges and Global Context in Ship Recycling

Currently, most ship recycling occurs in South Asia, particularly India and Bangladesh, where scrap prices are higher. However, these practices involve serious environmental hazards and worker fatalities. Since 2009, at least 470 workers have died, and coastal areas have suffered contamination. Consequently, EU-based recycling could provide safer, cleaner alternatives while capturing valuable material locally.

Meanwhile, global scrap consumption declined 6.9% in the first half of 2025 compared to 2024, totaling 235.96 million tons. This represents 76% of global steel production. As steelmakers face tighter decarbonization targets, domestic ship recycling could provide a strategic, low-carbon source of secondary raw materials.

SuperMetalPrice Commentary:

Ship recycling presents a unique opportunity to enhance EU scrap availability while advancing decarbonization goals. Scaling domestic recycling could reduce reliance on South Asian yards, improve safety, and provide steady supply for electric arc furnaces. Policymakers must integrate ship recycling into circular economy initiatives and enforce strict environmental standards. If executed effectively, this strategy could reshape EU steel production toward greener, more sustainable practices.