Posted on 09 Dec 2025
South Korea's Hyundai Steel has announced a KRW 170 billion ($116 million) investment programme to secure high-grade steel scrap and expand low-carbon emission raw material capabilities by 2032, as electric arc furnace (EAF) production gains importance in the country’s decarbonisation strategy.
The investment includes the installation of new shredder systems and upgraded scrap sorting and refining lines at the company's Dangjin and Pohang steelworks, Kallanish learns from the company.
The steelmaker will first spend KRW 22 billion to build a shredding and material upgrading facility in southern Gyeonggi Province, which will collect obsolete scrap and process it into high-purity shredded scrap. Construction begins in early 2027 with commercial operations targeted for 2028.
Securing premium scrap is becoming a strategic priority as more South Korean mills pursue EAF expansions to cut emissions.
Hyundai Steel says its scrap strategy is part of a broader long-term decarbonisation plan that includes hybrid BF-EAF operations and future hydrogen steelmaking pathways.
South Korea's self-sufficiency rate for EAF raw material sits at just 80-90% which forces mills to compete for imports and high-quality domestic supply. Shredded scrap contains higher iron content and more uniform quality, making it a critical feedstock for low-carbon emission steelmaking via EAFs.
To strengthen domestic procurement, Hyundai Steel is expanding its partnerships with scrap processors. Since 2023, the company has supported KRW 20 billion in shredder investments across three partner companies and will introduce additional waste-treatment support programs for existing processors.
It is also developing technologies to upgrade ordinary scrap into premium grades. The company has already installed a pilot sorting and refining line at its Pohang plant in 2024 and is conducting internal R&D to improve scrap quality. It plans to expand this research further in 2026 by applying for a national R&D project to advance high-grade scrap production technologies.
Source:Kallanish
