The growing pressure on steelmakers to improve efficiency, reduce emissions and secure raw material quality is driving a profound transformation in the role of the scrap yard. What was once considered a purely upstream, logistics-driven function is now evolving into a key operational lever, directly influencing meltshop performance and overall plant efficiency.
In this context, the integration of advanced scrap-processing technologies within steelmaking facilities is becoming increasingly important. By bringing scrap preparation inhouse and aligning it with downstream operations, producers can ensure more consistent raw material quality, reduce process variability, and improve both productivity and sustainability.
The experiences of Metalfer in Serbia and Aza in Chile illustrate how this approach can be successfully implemented in different industrial and geographical contexts. While each company has followed its own development path, both demonstrate how integrating scrap processing into the steelmaking value chain generates tangible benefits across the entire production process.
METALFER: integration a strategic choice
Founded in London in 1993 and active in the Balkans since 2002, Metalfer has grown into a leading regional player in steel, mining, energy, and infrastructure. In Sremska Mitrovica, Serbia, the company has developed a vertically integrated steel production hub from scrap processing to finished rolled products powered entirely by Danieli technology.
To support its long-term growth strategy and increase self-sufficiency, Metalfer selected Danieli to supply both the rolling mill and a complete scrap processing line, reinforcing the integration between upstream and downstream operations.
The latest development at the site is a fully integrated scrap recycling plant supplied by Business as Danieli Centro Recycling, capable of processing 250 000 tonnes of shredded scrap per year. The plant features a heavy duty conveyor feeding a high-power shredder equipped with a patented inverter drive system, allowing energy savings of up to 15%.
Downstream, a ferrous separation system ensures the removal of non-ferrous contaminants, while a flexible processing line enables the recovery of highpurity Zorba.
Closing the loop
This investment represents a decisive step toward closing the loop within the production chain. By processing scrap internally, Metalfer can control material quality before it reaches the meltshop, with significant benefits for furnace performance.
‘We have observed clear improvements in furnace performance, particularly greater operational stability and reduced energy consumption,’ says Branko Zečević, president of Metalfer Group. ‘Productivity levels have increased and product quality has become more consistent.’
Internally processed shredded scrap now accounts for 50-60% of each furnace charge. The higher density of the material allows for fewer bucket charges, improved productivity and simplified operations. For Metalfer, the key value lies in the integration across the entire process.
‘The biggest advantage is integration,’ Zečević explains. ‘By relying on a single partner for multiple stages of production, we achieve a seamless connection between scrap processing and rolling operations.’
Rolling mills
The company’s endless rolling mill, supplied in 2018, further enhances this integrated approach by enabling a continuous production flow with reduced downtime and improved yield. Combined with direct charging and additional process upgrades, this configuration ensures that improvements generated in the scrap yard translate directly into downstream benefits.
‘The synergy is very clear,’ Zečević adds. ‘The shredder has become a central part of our value chain. By upgrading scrap quality at the very start of the process, it ensures smoother and more predictable operations downstream.’
AZA: smarter shredding
Aza Acero Sostenible is one of Chile’s leading steel producers and a long-established player in Latin America’s recycling-based steel industry. Founded in 1953, the company has evolved into a fully scrap-based steelmaker, building its identity around circular economy principles and the use of ferrous scrap as its primary raw material.
Operating a mini-mill in Colina, near Santiago, Aza has continuously invested in technologies aimed at improving efficiency, sustainability and product quality. The integration of advanced scrap processing represents the latest step in this evolution.
The recently commissioned Danieli Centro Recycling plant, with a capacity of 200 000 tonnes per year, is centred on a 4 000-hp shredder equipped with an inverter drive system designed to reduce energy consumption. The plant also includes a complete ferrous separation line and a flexible system for recovering non-ferrous materials, producing high-purity Zorba.
The objective of the project was clear: improve scrap quality and enhance meltshop performance. ‘We have recently commissioned a new shredding plant designed to efficiently process scrap and improve metal yield in our steel mill,’ says Leonardo Aravena, scrap yard manager at Aza. The integration of shredded scrap has delivered tangible results.
‘The performance has been very satisfactory,’ Aravena explains. ‘We have met the expectations outlined in the technical study and, in some cases, we have exceeded them.’
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