SCRAP-BASED ELECTRIC ARC FURNACE MARKET Challenges and Opportunities

The scrap-based electric arc furnace market has been facing significant challenges due to the volatile pricing of scrap metal in the recent past. Scrap constitutes a major raw material for electric arc furnace steel producers, accounting for over 60-70% of the total raw material basket. However, global scrap prices have witnessed considerable fluctuations over the last few years mainly due to uncertainties in the global economic environment and changing supply-demand dynamics. As scrap is traded in the international markets, its pricing gets impacted by macroeconomic factors across different regions. Volatility in scrap prices increases the input cost volatility for electric arc furnace producers, making accurate project costing and pricing for clients quite challenging. It also impacts the margins and profitability of electric arc furnace manufacturers.

Market Opportunity- Investment in Technological Advancements Creates Novel Opportunities

Scrap-based electric arc furnace market presents new opportunities for growth with heavy investments in technological advancements and automation. Electric arc furnace producers are increasingly focusing on incorporating Industry 4.0 principles and integrating their melting and manufacturing facilities with advanced digital technologies. This includes leveraging solutions like artificial intelligence, internet of things, and big data analytics to optimize plant operations, improve yield and productivity, and reduce carbon footprint of operations. Advanced sensor-based technologies help track asset performance in real time while predictive maintenance tools minimize breakdowns.