During the panel, it was emphasized that global supply chains have recently entered a profound transformation process due to geopolitical tensions, logistical bottlenecks, protectionist policies and carbon regulations. Participants stated that this process is not a temporary fluctuation but a permanent “new era,” noting that the sector is now evolving toward a structure that is more regional, more fragile and more competitive.
The panel was moderated by SteelWise Metal Foreign Trade Inc. General Manager Emrah Uğursal and featured EMR Commercial General Manager Tao Bai, Amsterdam Scrap Terminal B.V Operations Director Volkan Başol, Libyan Iron and Steel Company (LISCO) Chairman Dr Mohamed Abdulmalak Elfighi, Universal Rolling Mill Operations Director Ali Der and Ruslom CEO Victor Kovshevny as panelists.
A new approach to scrap quality with global power shred
Speaking at the opening of the panel, Tao Bai highlighted the Global Power Shred concept developed by the glass and steel industries, noting that commercial scrap undergoes a multi-stage processing procedure.
EMR Commercial General Manager Tao Bai explained that through this method, scrap material is reprocessed at different stages and subjected to additional sorting procedures, thereby reducing copper and other impurity levels below 0.1%. However, Tao Bai emphasized that this process is highly costly, making it difficult for the method to become a global standard in the short term.
Amsterdam Scrap Terminal B.V Operations Director Volkan Başol noted that demand for low-copper scrap is important for certain specialized industries, but this segment remains limited within the overall market. He further indicated that due to high costs, this model is not expected to become widespread.
Scrap exports and regulations in the US and Europe
Following moderator Emrah Uğursal’s remarks regarding scrap supply security in the European Union and the Waste Shipment Regulation (WSR), which will enter into force in 2027, Tao Bai assessed the US and EU markets.
Tao Bai noted that no restrictions on scrap exports are expected in the US in the near term, emphasizing that due to the country’s structural dynamics, scrap generation continues to exceed domestic consumption. Stressing that the US will remain a reliable scrap exporter, Tao Bai pointed out that in the post-2025 period, the country recorded an approximately 16% decline in scrap exports and a 17% decrease in finished steel imports.
Volkan Başol, meanwhile, stated that the new electric arc furnace capacity to be commissioned in Europe will reach approximately 10 million tons, which will result in high-quality scrap remaining within Europe. He added that this development will usher in a new era of competition in the global scrap trade.
Libya preparing to become a global hub for DRI and HBI production
Libyan Iron and Steel Company (LISCO) Chairman Dr Mohamed Abdulmalak Elfighi announced that the country is targeting a major increase in DRI and HBI production capacity.
Elfighi stated that, in addition to the existing 1.1 million tons of DRI and 700,000 tons of HBI capacity, a new 2.4 million ton facility will be commissioned, bringing total capacity to 8.1 million tons. He noted that these investments will position Libya as one of the world’s largest DRI and HBI production hubs.
Moderator Emrah Uğursal also confirmed that, together with projects involving Turkish investors in Libya, an additional 4.4 million tons of capacity is being developed, with a significant portion of production expected to be exported as HBI.
Red Sea crisis brings Gulf supply chain to a near standstill
Universal Rolling Mill Operations Director Ali Der stated that DRI and pelletizing capacity in the Gulf region has reached significant levels, but geopolitical tensions along the Red Sea and Strait of Hormuz routes have caused severe disruptions across the supply chain.
Ali Der noted that Bahrain’s 12 million ton pellet plant has nearly come to a halt due to interruptions in raw material flows, adding that many facilities across the region are facing similar inventory shortages. He further explained that plants in Oman continue operating, although shipments cannot be carried out because of logistical disruptions.
Emphasizing that developments in the region have evolved into a structural crisis, Ali Der indicated that current conditions are unlikely to normalize before 2027.
Sharp decline in Russian scrap exports
Ruslom CEO Victor Kovshevny stated that Russia previously exported between 10 and 13 million tons of scrap annually, but this figure has now declined to between 1 and 1.3 million tons.
Kovshevny emphasized that the primary reason behind the decline is not insufficient production, but rather logistical costs and domestic market pricing. He noted that Russia potentially has the capacity to reach 5 million tons, although current market conditions continue to limit this potential.
Kovshevny also pointed out that Russia’s semi-finished steel exports, which stood at 18 million tons in 2025, have declined to 10 million tons. He added that the market is becoming increasingly consolidated, prompting independent producers to seek international partnerships.
Chinese billet exports and upstream competition
In the final section of the panel, Ali Der noted that competition in the global steel market is increasingly shifting from finished products toward raw materials and semi-finished products.
Ali Der stated that China is moving toward restricting billet exports, while exports of low value-added products are also being limited. Emphasizing that steel trade will evolve into a more regional structure in the future, Der noted that investments centered in Saudi Arabia, Oman and North Africa are expected to play a leading role in green steel production.
Ali Der further emphasized that future competition will intensify on the upstream side, namely raw material security, while the downstream segment will become more regionalized and flexible in structure.
Panel speakers agreed that the global steel industry is evolving into a structure that is more fragile, more regional and increasingly exposed to geopolitical risks. They emphasized that secure access to raw materials has become critical for supply chains, regional trade is gaining strength over globalization, and upstream competition will emerge as the defining factor in the industry.
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