Supply chain integration strategies and circularity in the European steel industry

As the environmental mindset became increasingly present in the steel industry, so did the concerns with the developments of its market. In an attempt to address both sides of this challenge, this article aimed at identifying how the implementation of different Supply Chain Integration strategies oriented towards raw material self-sufficiency and resource ownership retention could affect circularity. The European steel industry was used as case study and the effects of closing material loops via Supply Chain Integration were tested by running simulations on an integrated Life Cycle Assessment and System Dynamics model. The results brought to light that different approaches can be environmentally and strategically promising, as well as able to drive improvements in raw material self-sufficiency and in resource ownership retention. Noteworthy were the adoption of vertical hedging strategies on the supply side, and of horizontal hedging strategies on end-of-life for either recycling, refurbishing or repair and maintenance services.