Raw Materials
A major benefit of recycling iron and steel is that it conserves natural resources. The Steel Recycling Institute reports that recycling one ton of steel conserves 2,500 pounds of iron ore, 120 pounds of limestone, and 1,400 pounds of coal versus creating a new ton of steel using virgin materials. Using an electric arc furnace, a manufacturer can remelt and recast steel using nearly 100 percent reclaimed materials.
Energy Savings
Recycling most scrap metal offers substantial energy savings, and iron and steel are no different. According to Tata Steel, recycling iron or steel requires only 75 percent of the energy required to create it from raw materials. The Steel Recycling Institute reports that the recycling of steel saves enough energy to power more than 20 million homes annually, and each pound of steel recycled saves enough energy to run a 60-watt bulb for 24 hours.
Recyclability and Availability
One of the biggest reasons for the high recovery rate of steel and iron is that, like other metals, recyclers can remanufacture steel from reclaimed materials repeatedly without any loss in quality. Plastic polymers break down when heated, and paper recyclers must constantly add fresh material to the process to offset the damage manufacturing does to the wood fibers in the pulp. Reclaimed iron is indistinguishable from freshly made metal, once processed, and one piece of metal may serve as many different products over the years. The ready availability of post-consumer steel and iron also makes it an easy choice for manufacturers. Junked automobiles alone provide more than 18 million tons of scrap steel every year.
Costs
Ultimately, what makes iron and steel recycling so attractive for manufacturers is the cost savings. With recycling requiring less raw materials and less energy, companies can achieve significant savings during the manufacturing process. In addition, scrap steel is readily available anywhere in the country, saving companies the trouble of mining iron ore and shipping it hundreds or thousands of miles to where they need it.