The next phase of US steel decarbonisation will depend on the development of direct reduced iron (DRI), low-carbon energy and enabling infrastructure, according to a new study published recently by CRU Consulting.
The US Steelmaking Industry report provides an independent assessment of the long-term outlook for the US steel industry, examining future production volumes, technology routes, metallics demand and emissions. It explores how the industry could evolve through 2050 and identifies the technologies, investments and infrastructure needed to support further decarbonisation.
The US steel industry already benefits from a relatively low emissions intensity, largely due to its high share of electric arc furnace (EAF) production. In 2025, EAFs accounted for 67% of North American steel production, compared with a global average of 28%. However, the study finds that further progress will depend on developments across the wider value chain.
Key findings of the US Steelmaking Industry report
- EAF production is expected to play an increasingly important role in the US steel industry through to 2050.
- DRI is expected to become increasingly important in supporting lower-emissions steel production and maintaining the required product mix.
- DRI demand is projected to grow faster than scrap demand, creating a need for additional investment in supply capacity.
- US DRI demand is expected to exceed operating and identified project capacity by 2035, even if all quantified project capacity is built, highlighting the need for additional investment.
- Greater availability of renewable electricity, hydrogen and supporting infrastructure will be critical to deeper decarbonisation across the industry.
Ultimately, the future competitiveness and sustainability of the US steel industry will depend not only on advances in steelmaking technology, but also on the successful development of the supply chains that support it. The findings offer stakeholders a clearer view of the strategic decisions and investments that could shape the industry’s long-term future.
We are grateful to everyone involved in delivering this project and for the opportunity to support this important work.
The full report is available to download here. To discuss the findings and explore further insights of our steel analysis, https://www.crugroup.com/en/contact-us/.
