Circularity strategies for steel in the EU: Insights from consolidated material flows data

Steel plays a pivotal role in the EU’s transition toward a more circular industrial system due to its broad use and high recycling potential. This study investigates opportunities to improve steel circularity in the EU by focusing on material quality as a key enabler of high-value recycling and functional reuse. Through the consolidation of existing data and a refined material flow analysis model, this work provides a comprehensive picture of steel flows by alloy type, product form, and end-use sector. It highlights the mismatch between the quality of end-of-life scrap and the requirements of high-grade applications, especially in sectors like transport. Drawing on expert elicitation and scenario analysis, the study shows that improvements in sorting, traceability, and product design are essential to unlock the full potential of steel scrap. However, this potential remains constrained by technical and systemic barriers related to scrap contamination, alloy dilution, and insufficient material characterization. The findings underscore the importance of maintaining alloy quality throughout product lifecycles and advocate for targeted ecodesign measures, improved sorting technologies, and strategic material management. These strategies are critical to move beyond downcycling and toward a closed-loop steel cycle that supports long-term resource efficiency and industrial resilience in the EU.