SSAB, Stena Metall reach supply agreement

Sweden-based recycled-content steel mill operator SSAB has entered into an agreement with Stena Metall, also based in Sweden, that ensures deliveries of recycled scrap metal from Stena Nordic Recycling Center in Halmstad, Sweden, to SSAB’s under-construction electric arc furnace (EAF) mill in Oxelösund, Sweden.

The steel producer says the agreement means a larger volume of recycled steel generated in Sweden can remain there, citing the benefits of reduced CO₂ emissions.

“On our journey toward fossil-free steel production, it is important to establish partnerships in the raw material sector,” says Asma Manesh, commodity manager for scrap at SSAB.

“The agreement with Stena Metal is a significant step on the Swedish recycling market. Our transformation in Oxelösund means that we will reduce Sweden’s CO₂ emissions by around 3 percent by producing steel from both recycled scrap metal and fossil-free sponge iron,” he adds, referring to hot briquetted iron (HBI)."

Scrap shipments primarily will take place by train between Halmstad and Oxelösund and the first deliveries are planned in connection with the ramp up of the new EAF, anticipated for 2026.

“We are proud to continue our long-term collaboration with SSAB, which now also results in us contributing to the transformation to sustainable steel production,” says Fredrik Lyckesvärd of Stena Recycling. “Simultaneously, we are jointly working on a solution that also includes recycling of material from selected SSAB customers in Sweden."

SSAB's plans entail converting its entire Nordic production system to produce steel with virtually zero-fossil carbon emissions while also increasing the share of premium products.

The mill in Oxelösund is the first site to be converted from blast furnace to EAF production, with a similar conversion project at a mill in Luleå, Sweden, to follow.