Global Scrap Metal Recycling Market

Scrap Metal Recycling Market size was calculated at USD 72.5 Billion in 2021 and is projected to reach USD 94.7 Billion by 2028, growing at a CAGR of 7.6% from 2020 to 2028. The growth in the population across the world, along with differences in consumers’ lifestyles, has led to an enhanced demand for metals which is one of the main aspects of the growth of this market. The rise in environmental problems, investments, and awareness and attention programs for sufferable waste management practices positively impact the metal recycling market. Furthermore, metal recovery from slag residue and public and private sector partnerships extend market players’ promising opportunities.

What is Scrap Metal Recycling?

Scrap metal recycling is defined as recovering metals from products at the end of the product life cycle. Scrap metal is regained and then used as a raw material in constructing new products. These metals are bifurcated into ferrous and non-ferrous categories. While ferrous scrap has some iron, non-ferrous scrap does not contain iron. These contain aluminum, lead, zinc, copper, etc. The recycled scrap metal discovers application in the booming residential, commercial, and industrial sectors. The rise in the requirement for scrap in different industries owing to the environmental and economic benefits, which further supports decreasing pollution and energy consumption along with the growing steel industry, which utilizes scrap metals broadly, is the primary factor pushing the growth of the market.

Growth Drivers

Technological Improvement in Scrap Metal Recycling Market 

The scrap metal recycling demand is anticipated to enhance with recycling rates. Expansion of recycling structures in developed and developing areas, better waste collection methods, and promoting metal recycling by manufacturers and countries can sustain business growth, develop new business prospects and augment employment in the scrap metal recycling market. The Canadian Association of Recycling Industries declares that Canada’s scrap metal recycling industry employs 160,000 individuals directly and indirectly. The use of rare metals in different products and their lack is also expected to increase the scrap metal recycling market. Scrap metal recycling creations are likely to be old-fashioned with technology growth. Growing industrialization & urbanization, increasing disposable income, and awareness are projected to propel the scrap metal recycling market during the forecast period.

Opportunities

Unlimited Recycling possibilities Spurring Scrap Metal Recycling

Metals can often be recycled in a closed-loop without any degradation in grade; thus, recycling scrap metals reduces the waste produced and indirectly shortens the expense of bringing the new metal. Recycling ferrous metals diverge exceptional metal grades, perfect for manufacturing electric cars and aircraft components. For example, the Government of India is embracing endeavors like National Steel Policy 2017 (NSP-2017) which desires to create a globally competitive steel industry by constructing 300 million TPA Steel production capability by 2030 with the assistance of 35-40% from the EAF/IF way. Although scrap is the primary raw material for the secondary sector, the primary sector also uses scrap in the direction mix of BOF to the tune of 15% to enhance efficiency minimize the cost of production and other process needs.

Restraints

Quality Problems with Recycled Material

Aluminum, steel, and metals require to be manually separated from other recyclable materials such as plastic and paper. Metals, mainly aluminum, manage to degrade after each reuse cycle, so products utilizing recycled metals can change in quality, but most metals never achieve a point where they are no extended recyclable. Scrap metal recycling products always utilize energy, albeit about 95 percent less than new production. Some states and local countries now have laws that mandate metals and other scrap metal recycling procedures. Florida’s Lee County needs the recycling of metals and scraps to create future recycling cheaper. End-users require to recheck government restrictions and norms before using any materials.

Pre Covid-19 Impact on Global Scrap Metal Recycling Market

Before the covid-19 outbreak, the increase in urbanization and industrialization across the globe is one of the foremost aspects driving the growth of the metal recycling market. The high adoption of the process among the manufacturers for procuring raw materials to produce finished goods without degrading their properties and the presence of laws and regulations enforced by governments accelerate the market expansion due to the rise in attention about the effective use of natural resources and the inclination to recycle metals for energy-saving further influence the market before the pandemic.

Covid-19 Impact on global Scrap Metal Recycling Market

During the Covid-19 periods, the pandemic has forced a supply chain disturbance, which resulted in a notable reduction in metal production. Furthermore, there was a big contraction in demand owing to the downshift of major end-use industries, such as construction and automotive. Due to stringent guidelines of the government, the energy demand has been changed across the globe, which showed supply chain disruptions and, in turn, has led to a decrease in metal demand and production. Also, with a massive crash in the automobile industry, the demand for metals such as copper, zinc, and aluminum has declined, affecting the market growth.

Post Covid-19 impact on Global Scrap Metal Recycling Market

After the covid-19 period, the supply volume of scrap metals was higher than their market. In addition, the shipments of non-ferrous metals in governments, including India, Malaysia, and Indonesia, weakened owing to logistical problems. These elements negatively affected the growth of the metal recycling market in the region, primarily in 2020. However, the resumption of industry operations in end-user industries such as steel and construction will improve the region’s market for recycled metal. It will show the market’s gradual recovery in focus in the region after the covid-19 outbreak.

By Metal segmental Analysis

The market is segmented into Ferrous Metal and Non-Ferrous Metal based on metal segment analysis. The ferrous segment is calculated to be a faster-growing market during the forecast period. Iron and steel scraps are some of the vast recycled ferrous metals worldwide. This scrap arrives from end-of-life products and scraps induced through manufacturing procedures.

By End-User Segmental Analysis

Based on End-User segmental analysis, the market is segmented into Automotive, Packaging, Shipbuilding and Industrial Machinery. The Industrial machinery sector ruled the market. There is a significant demand for steel and aluminum from the global construction industry. Increasing urbanization owing to rising disposable income classes in the emerging economies is possible to donate to the development of the construction industry, thereby propelling the demand for industrial machinery metal products. It, in turn, is predicted to push the growth of the recycling industry.

By Regional Segmental Analysis

The market is segmented into North America, Europe, Asia-Pacific, South America, and The Middle East & Africa based on regional segment analysis. The Asia Pacific showed the market and accounted for more than 77.0% global earnings share in 2021. This domination can be attributed to the influential metal production in the region. Therefore the Asia-Pacific has a well-established recycling industry. Metal production in Europe is considerably smaller when than in the Asia Pacific. However, recycled scrap for secondary metal production in Europe is moderately higher.

Competitors Analysis

The companies include ArcelorMittal, Nucor Corporation, Commercial Metals Company, SIMS Metal Management Limited, Aurubis AG, European Metal Recycling Limited, Tata Steel, Dowa Holdings Co. Ltd., Schnitzer Steel Industries Inc. and other prominent players in the global scrap metal recycling market. Key Stakeholders

• Market research and consulting firms
• Scrap Metal Recycling  Associates
• Local Governments
• Regulatory bodies
• Scrap Metal Recycling Market
• Suppliers
• Service Providers

Recent Developments

• In November 2019, ArcelorMittal invested in a new sustainability program in Europe to ensure Responsible Steel site certificate for all its ArcelorMittal Europe – Flat Developments sites.
• In May 2019, Nucor Corporation declared a capital investment to add vacuum degassing to its engineered bar credentials at its bar mill in Darlington, South Carolina. Adding this capability will allow the mill to deliver engineered bar products that meet some of the industry’s most rigorous quality specifications. The vacuum degassing procedure is anticipated to begin operations in late 2020.
• In May 2019, Aurubis AG obtained the Belgian-Spanish Metallo Group to continue actively pursuing its multi-metal and recycling strategy. With its incredible growth potential, the acquisition strengthens its multi-metal portfolio, especially in the key metals copper, nickel, tin, zinc, and lead.

Scope of the Report

Report Attribute	Details
Market Size Value in 2021	USD 72.54 Billion
The revenue forecast in 2028	USD 94.70 Billion
Growth Rate	CAGR of 7.6 % from 2022 to 2028.
Historical data	2017 – 2020
Forecast period	2022 – 2028
Region covered	North America, Europe, Asia-Pacific, South America, and Middle East & Africa
Key companies Profiled	The Companies include ArcelorMittal, Nucor Corporation, Commercial Metals Company, SIMS Metal Management Limited, Aurubis AG, European Metal Recycling Limited, Tata Steel, Dowa Holdings Co. Ltd., and Schnitzer Steel Industries Inc. are the key players.

Market Modelling

By Metal Type

• Ferrous Metal
• Non-ferrous Metal

By End-User Industry

• Automotive
• Packaging
• Shipbuilding
• Industrial Machinery

By Region

• North America
• Europe
• Asia-Pacific
• South America
• The Middle East & Africa

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