The use of EAFs allows steel to be made from a 100% scrap metal feedstock. This greatly reduces the energy required to make steel when compared with primary steelmaking from ores.
Another benefit is flexibility: while blast furnaces cannot vary their production by much and can remain in operation for years at a time, EAFs can be rapidly started and stopped, allowing the steel mill to vary production according to demand.
Although steelmaking arc furnaces generally use scrap steel as their primary feedstock, if hot metal from a blast furnace or direct-reduced iron is available economically, these can also be used as furnace feed.
As EAFs require large amounts of electrical power, many companies schedule their operations to take advantage of off-peak electricity pricing.
A typical steelmaking arc furnace is the source of steel for a mini-mill, which may make bars or strip product. Mini-mills can be sited relatively near the markets for steel products, so the transport requirements are less than for an integrated mill, which would commonly be sited near a harbor for better access to shipping.
Electric arc furnace steelmaking results in lower carbon dioxide emissions of around 0.6 ton CO per ton of steel produced, which is significantly lower than the conventional production route via blast furnaces and the basic oxygen furnace.