POSCO is launching a 2.5 million ton electric arc furnace at Gwangyang Steel Works to reduce annual carbon emissions by 3.5 million tons. This shift toward scrap-based steelmaking has triggered a sharp increase in domestic scrap prices, creating supply shortages for smaller steelmakers. While the move supports carbon neutrality goals, it exposes a critical vulnerability in the scrap metal ecosystem. High raw material costs and competition from cheaper Chinese imports are challenging the economic viability of low-carbon steel production in the region.
