The low-carbon transformation of the steel industry may bring challenges to zinc recycling

A report released by Wood Mackenzie International Energy Macro Research shows that efforts to achieve a low-carbon transition in the steel industry through the adoption of green hydrogen direct reduced iron (DRI) could have an important impact on the recycling of zinc. Compared with scrap steel, the use of direct reduced iron in electric furnaces results in lower zinc content in electric furnaces dust, which increases the cost and carbon emissions of zinc recovery.
According to the report, about 1.6 million tons of zinc worldwide comes from steel dust and other residues every year. The average zinc content in EAF dust is 17%, and increasing the use of direct reduced iron in EAF process will lead to a decrease in zinc-rich dust.
Wood Mackenzie International Energy Macro Research Institute predicts that by 2050, nearly half of the world's steel production will be achieved through the electric furnace process. This shift is necessary for the global steel industry's low-carbon transition efforts, but it also poses challenges for the zinc industry to meet the needs of the low carbon and circular economy. The current "best available technology" for zinc recycling is a carbon-intensive process, making it difficult for the zinc market to align with the steel industry's low-carbon goals. The main raw material of zinc smelters is zinc oxide, and zinc oxide is mainly obtained from the recovery of zinc from steel dust.