Recycled Scrap Metal Market

2016-2020 Recycled Scrap Metal Market Outlook Compared to 2021-2031 Forecast

Demand for recycled scrap metals grew at 0.9% CAGR between 2016 and 2020. Sales prospects were further dampened due to the outbreak of COVID-19 pandemic in 2020, which reduced metal demand from several industries, mainly automotive and construction. The consequent decline in the production of iron and steel also negatively impacted the consumption of recycled scrap metal.

Increasing use of recycled scrap metal in iron and steel production and manufacturing of various metal products is projected to propel sales at 5.4% CAGR over the forecast period, from 2021 to 2031. Significant growth in the iron and steel production in East Asia, especially in China has will continue boosting consumption of recycled scrap metals.

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Increasing Iron and Steel Production Boosting Recycled Scrap Metal Sales

Rapid expansion of the construction sector, automotive production, industrial machinery, tools and equipment sector, and ship building is spurring the demand for iron and steel. Investment towards infrastructure, especially in developing nations is also boosting demand for iron and steel in civil construction. This is resulting in increasing sales of recycled scrap metals, and the trend is expected to continue over the forecast period.

Significant growth in the construction and infrastructure sector in China in the past few years has boosted the consumption of iron and steel, resulting in high demand for scrap metals for the production. As scrap metal utilization helps in reducing carbon emission and waste generation, key players are preferring scrap metals to produce iron and steel. This reduces overall production cost and helps companies in achieving their sustainability goals.

China also has significantly increased its steel production in the last decade, which has boosted the demand for recycled scrap metals. Overall increase in iron and steel production is anticipated to propel the consumption rate of scrap metals in the coming years.

Country-wise Insights

Why is Demand for Recycled Scrap Metal Rising in the U.S.?

In 2021, the U.S. recycled scrap metal market is expected to grow by 4.9% year-on-year, reaching a valuation of US$ 8.4 Bn in 2021. Rapid expansion of end-use industries such as construction, automobile, ships, railways, industrial tools and equipment and machinery in the U.S. is expected to boost demand for recycled scrap metals in the forthcoming years.

Consumption of ferrous metals across North America is anticipated to rise remarkably by the end of 2021. Considering this, applications of recycled scrap metal in iron and steel production, along with production of various non-ferrous metals items for several end-uses is expected to bolster the market growth in the U.S.

What will be the Demand Outlook of Recycled Scrap Metal in Russia?

Consumption of scrap metals to produce iron and steel is anticipated to witness considerable growth in the coming years in Russia. The recycled scrap metal industry in Russia is expected to register year-on-year growth of 4.4% in 2021.

As per Bureau of International Recycling Statistics, domestic production of steel accounts for about 42.5% of recycled steel used in Russia. Driven by increasing awareness regarding carbon emission, manufacturers are widely utilizing recycled scarp metals in Russia. This, in turn, is expected to bode well for the recycled scrap metals market in Russia through 2031.

How is Industrial Expansion Boosting Growth of Recycled Scrap Metals Market in China?

China is estimated to remain a key producer and consumer of recycled scrap metal, accounting for about 80% of the overall recycled scrap metal consumption in East Asia in 2021. Rapid developments in the industrial, building and construction and infrastructure sectors is boosting sales of recycled scrap metals in the country.

Furthermore, ongoing developments in the steel industry in China is also enhancing growth prospects of the recycled scrap metals market. Significant development in end-use industries such as railways expansion, industrial tools and equipment, production of home appliances and many others are propelling the consumption of recycled scrap metals. Driven by these aforementioned factors, sales of recycled scrap metals in China are anticipated to grow at a 5.8% CAGR over the assessment period.

Category-wise Insights

Why is Demand for Ferrous Metals Increasing?

In terms of metal type, ferrous metals are expected to dominate the market of recycled scrap metals. As per FMI, the ferrous metals segment is projected to register year-on-year growth of 5.0% in 2021.

Increasing production of iron and steel is bolstering sales of ferrous metals. Growing construction and infrastructure sector is significantly contributing to the development of this segment. Besides this, growing production of industrial machinery, parts, tools, equipment, and manufacturing of vehicles, railways and ships is expected to continue fueling sales of ferrous metals over the forecast period.

Which Source Type of Recycled Scrap Metal is Most Preferred?

Consumption of post-consumer scrap metal is expected to account for over 85% of the total recycled scrap metal market share in 2021.

Ample production of steel scraps, and other non-ferrous metal scrap from automotive recycling & other appliance recycling is fueling sales of recycled scrap metals, and the trend is expected to continue through 2031.

Who is the Key End-Use of Recycled Scrap Metal?

Revenues in the building and construction segment are estimated to grow by 5.3% year over year rate in 2021. Meanwhile, demand for recycled scrap metals in the equipment and tools segment is expected to increase at 4.6% CAGR between 2020 and 2021.

Competitive Landscape

Key market participants are enhancing their global presence through mergers, acquisitions, strategic collaborations and partnerships. Further, key players are focusing on reducing carbon emission by increasing waste utilization in their manufacturing processes. For instance:

• In Sept 2021, Nucor Corporation subsidiary Advantage Metals Recycling acquired Grossman Iron and Steel Company in the U.S. This acquisition is expected to enhance the production capacity of Nucor Corporation and will benefit the company for sustainable development.

Scope of Report

Key Questions Answered in the Report

• What is the current recycled scrap metal market value?

  The recycled scrap metal market is anticipated to reach a valuation of US$ 58.4 Bn in 2021

• What is the demand outlook for the recycled scrap metal?

  The recycled scrap metal market is anticipated to witness a growth rate of 5.4% over the forecast period of 2021 and 2031 in terms of volume.

• At what rate did the recycled scrap metal market grow between 2016 and 2020?

  The recycled scrap metal market witnessed growth of 0.9% CAGR between 2016 and 2020.

• What are the key trends driving recycled scrap metal sales?

  Increasing utilization of scrap metals to produce iron and steel and other metal items is expected to boost sales of recycled scrap metals.

• Who are the leading players in the recycled scrap metal market?

  Hesteel Group, ArcelorMittal, China Baowu Steel Group Corp., Nucor Corporation, Aurubis AG and others are the key players in the recycled scrap metal market.

• What is the market share of leading players in recycled scrap metal market?

  Key players in the global recycled scrap metal market are expected to hold around 32% of global market share.

• What is the demand outlook for North America recycled scrap metal market?

  Demand for recycled scrap metal in North America is expected to grow at a 5.2% CAGR through 2031.

• What is the Europe market outlook for recycled scrap metal?

  Europe recycled scrap metal market is estimated to expand at a 4.7% CAGR during the forecast period.

• Who are the key exporters in the recycled scrap metal market?

  Key exporters in the recycled scrap metal market are U.S., Japan, Germany, France and others.

• Which are the top countries driving the recycled scrap metal market demand?

  Top countries driving the recycled scrap metal demand are China, the U.S., South Korea, Japan, and Russia.

• What is the current market share of South Korea and Japan in the global recycled scrap metal market?

  South Korea and Japan are expected to collectively account for over 9.9% of the total in 2021.

Recycled Scrap Metal Market by Category

By Metal Type:

• Ferrous Metals
  • Iron
  • Steel
• Non-Ferrous Metals
  • Aluminum
  • Copper
  • Precious Metal
  • Tin
  • Zinc
  • Others

By Source Type:

• Production Scrap
• Post-Consumer Scrap

By End-Use:

• Transportation
• Building & Construction
• Consumer Electronics
• Packaging
• Equipment & Tools
• Art, Decor & Home Furnishings
• Jewelry
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa