Metal scrap for a circular steel industry
Metalshub recognises the growing relevance of secondary raw materials and thus has included the product categories ferrous and non-ferrous scrap on the platform since July 2020 to support both the digital transformation of the steel and iron industry and the achievement of a circular economy.
As a result of its high recyclability, steel is one of the key material groups that already today can meet tomorrow’s challenge of a fully circular economy. Currently, around 85-90% of steel products are recovered at their end of life and recycled to produce new steel.
Optimizing the procurement of scrap has for a long time already been a priority for many foundries and steel mills that aim to reduce their raw material spending. For many companies, scrap accounts up to two-thirds of their total raw material costs.
Being able to facilitate their scrap purchases has been one of the main drivers for key industry players such as Metso Outotec, MAT Foundry Group Ltd, and the Friedr. Lohmann GmbH to move their raw materials procurement onto the Metalshub platform. Like many others, these companies have seen the advantages of our supplier evaluation and management functions to make their purchasing processes more efficient and be able to connect with a growing network of vetted and trustworthy suppliers.
The diversity of scrap and its challenges in sourcing
Since only a few raw materials are as diverse as scrap, the melting process is often adapted to a small number of available grades. Due to low material logistics cost ratios, some scrap grades even tend to be sourced only regionally, further limiting the number of potential distributors and making it difficult for companies to expand their supplier base.
In contrast, alloyed scraps with higher values can be sourced over longer distances. The plant of Metso Outotec in Brazil is a good example of a foundry actively searching for new suppliers for its manganese steel scrap as the offer is limited in South America.
Based on its sustainability goals and leadership values, Metso Outotec is committed to a sustainable environmental production where the digitalisation of its procurement activities and supply chain has become one of its main priorities.
Metalshub as the leading digital procurement platform specialized in metals and ferroalloys has joined forces with Metso Outotec in Brazil to digitise its purchasing process not only for its metals and ferroalloys but also for the procurement of its manganese steel scrap.
We aim to be a sustainability leader in our industry. Sustainability at Metso Outotec is founded on our strategy and code of conduct. By using scrap metals for our production and digitalising our supply chain, we meet our sustainability goals and help our customers and suppliers also to reach their targets, Santiago Rodrigues, Pl Purchasing Engineer at Metso Outotec – Sorocaba BR Foundry
Metalshub is very proud to be part of the solution to create a better tomorrow not only for the steel and iron industry but for the environment and global economy!
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