Scrap Metal Recycling Market Size, Share & Industry Analysis, By Type (Ferrous and Non-Ferrous (Aluminum, Copper, and Others)), By Application (Building & Construction, Automotive, Equipment Manufacturing, Packaging, Consumer Appliances, and Others), and Regional Forecast, 2024-2032

The global scrap metal recycling market size was valued at USD 407.02 billion in 2023. The market is projected to grow from USD 420.83 billion in 2024 to USD 568.76 billion by 2032 at a CAGR of 3.8% during the forecast period. Asia Pacific dominated the scrap metal recycling market with a market share of 51.29% in 2023.

The scrap metal recycling is a significant component of global sustainability and resource efficiency efforts. It involves collecting, sorting, processing, and recycling discarded metal materials into useful raw materials for manufacturing new products. Various factors drive this market, including environmental benefits, energy savings, and economic incentives. The industry's economic value is further enhanced by the fact that metals can be recycled repeatedly without degrading their properties, making them a sustainable resource for manufacturing.

The market experienced several impacts due to the COVID-19 pandemic, affecting supply chains, pricing dynamics, and demand trends for recycled materials. Overall, the scrap metal recycling sector encountered formidable challenges amid the pandemic and demonstrated resilience and adaptability through innovative measures and a heightened focus on sustainability.

Scrap Metal Recycling Market Trends

Rising Awareness of the Environmental Benefits of Recycling Metals is the Key Market Trend

Metal recycling is increasingly recognized for its positive impact on the environment, where recycling metals helps reduce the harmful effects of mining and processing new materials. It also aims to conserve natural resources, lower energy usage, and reduce greenhouse gas emissions. As the world focuses more on sustainable practices, recycling metals for environmental preservation is gaining more attention. This emphasizes its role in creating a healthier planet for future generations.

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Scrap Metal Recycling Market Growth Factors

Growing Global Infrastructure Development Fueling the Need for Recycled Metals

The growing global infrastructure development is driving the demand for recycled metals, leading to a significant shift toward sustainable practices in construction and manufacturing. Recycling metals is often more cost-effective than extracting and processing new metals, and it plays a key role in the recycling and manufacturing industries. As urbanization and economic growth continue, demand for infrastructure and construction materials increases. Recycled metals offer a sustainable solution to meet this demand.

RESTRAINING FACTORS

Volatility in Raw Material Prices May Hinder Market Growth

The volatility in raw material prices, particularly scrap metals, significantly hinders market growth. When prices of scrap metals fluctuate, it creates uncertainty and challenges for industries that rely on these materials for production. Companies may face increased costs, leading to higher product prices, potentially reducing demand. In addition, planning and forecasting become more difficult for businesses, impacting investment and expansion strategies. This volatility can affect various sectors, including construction, automotive, and electronics, heavily dependent on metal materials.

Scrap Metal Recycling Market Segmentation Analysis

By Type Analysis

Ferrous Segment Held a Dominant Share Due to its Extensive Use in Various Applications

Based on type, the market is segmented into ferrous and non-ferrous. The ferrous segment held a dominant scrap metal recycling market share in 2023. Ferrous scrap metal, primarily composed of iron and steel, significantly leads in the scrap recycling industry. It holds a dominant share due to its extensive use in various sectors, including automotive, construction, and manufacturing. Ferrous scrap recycling supports environmental sustainability by reducing the need for virgin ore. In addition, it plays a crucial role in the economy by providing cost-effective raw materials for steel production. Recycling typically involves collecting, sorting, and shredding the metal before it is melted and repurposed, thus forming a critical loop in the resource conservation cycle.

Non-ferrous scrap metal pertains to metals that do not contain significant quantities of iron and are not magnetic, including aluminum, copper, lead, zinc, and nickel. These materials are highly sought after in recycling due to their ability to retain their original properties and quality after recycling. Recycling non-ferrous metals plays a crucial role in reducing the environmental impact of mining new metals, conserving energy, and decreasing greenhouse gas emissions. The global market for these metals is extensive, driven by the electronics, construction, automotive, and packaging industries, which rely heavily on these sustainable materials for manufacturing various products.

By Application Analysis

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Building & Construction Segment Holds a Major Share Driven by Usage of a Major Proportion of Recycled Metals in Construction Projects

Based on application, the market is segmented into building & construction, automotive, equipment manufacturing, packaging, consumer appliances, and others. The building & construction application is a dominant segment in the market. The extensive use of recycled metal materials in construction projects, including steel structures, copper pipes, and aluminum frames, contributes significantly to the scrap metal supply at the end of their lifecycle. Recycling these materials supports sustainability goals by conserving natural resources and reducing greenhouse gas emissions and plays a crucial role in the circular economy. As the demand for environmentally friendly and sustainable building practices increases, the importance of scrap metal recycling within this sector is expected to grow, further emphasizing its pivotal role in the industry.

Recycling scrap metal plays a crucial role in the automotive industry, providing a sustainable source of raw materials for vehicle manufacturing and reducing the environmental impact. This process involves collecting, sorting, and processing discarded metal from cars, trucks, and other vehicles, then melting it to create new parts and products. It helps conserve natural resources by reducing the need for virgin ore mining and significantly decreasing greenhouse gas emissions compared to producing new metals. Furthermore, scrap metal recycling in the automotive sector supports the circular economy, promotes energy conservation, and offers substantial economic benefits by creating jobs and reducing production costs.

REGIONAL INSIGHTS

By region, the market for scrap metal recycling is divided into Latin America, Asia Pacific, North America, Europe, and the Middle East & Africa.

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Asia Pacific dominated the global market in 2023, driven mainly by the construction and automotive industries. China holds the dominant market share due to its status as a manufacturing hub. This trend is expected to further propel the market's growth in the region. In addition, the development of the Indian market can be attributed to the increasing product consumption by packaging industries, which is linked to the growing population and rising disposable income levels.

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The North American market for scrap metal recycling is expected to experience a substantial annual growth rate in the upcoming years. The U.S. holds a prominent position in the North American market and captures a significant market share. The market is characterized by increasing demand for automotive and equipment manufacturing applications, which is slated to consequently drive the consumption of recycled scrap metal in the region.

Europe is poised to witness steady growth in the coming years, attributable to the widespread application of products across several industries, including automotive and packaging. Germany, Italy, and France are the major contributors to Europe’s scrap metal recycling market growth.

The market’s growth in Latin America is linked to the increasing market demand in sectors, such as construction and packaging. The demand for these products is exceptionally high in Brazil, Mexico, and Argentina, which have emerged as prominent market drivers in recent times.

The scrap metal recycling market in the Middle East & Africa is expected to experience significant growth during the forecast period. This growth is credited to the region's increasing mass building and construction activities, which have led to a surge in the demand for scrap metal processing industries. As a result, the market in these regions is expected to witness notable growth during the forecast period.

KEY INDUSTRY PLAYERS

Key Players Adopted Product Development and Capacity Expansion Strategies to Maintain Market Dominance

The competitive landscape of the market for scrap metal recycling depicts a consolidated and competitive structure. Global players in the market have heavily invested in developing better technologies to improve the product’s performance. The development of novel technologies is one of the key strategies used by market leaders for their growth. In addition, they are focusing on acquisition and expansion activities to increase their market share.

List of Top Scrap Metal Recycling Companies:

• ArcelorMittal (Luxembourg)


• Aurubis AG (Germany)


• Kuusakoski Group Oy (Finland)


• Nucor Corporation (U.S.)


• AIM Recycling (Canada)


• Sims Limited (U.S.)


• OmniSource, LLC (U.S.)


• Metallon Recycling Pte Ltd (Singapore)


• SA Recycling LLC (U.S.)


• TKC Metal Recycling Inc. (Canada)

KEY INDUSTRY DEVELOPMENTS:

• April 2024 – Brown Gibbons Lang & Co. (BGL) unveiled the sale of Toledo Shredding LLC, a subsidiary of ProTrade Group based in Fairlawn, Ohio, to OmniSource LLC. OmniSource LLC is the scrap processing division of Steel Dynamics Inc., located in Fort Wayne, Indiana. ProTrade Group is a fully integrated scrap metal company specializing in ferrous and nonferrous metals.


• November 2023 – Sims Ltd., a global scrap metal and electronics recycling company, announced that it is undergoing a strategic review that could lead to the potential sale of its scrap yards network in the U.K. The primary goal of this process is to explore different options to improve the performance of the U.K. Metal business and maximize returns for its shareholders.


• February 2023 – Kuusakoski announced the construction of a new composite shredding and treatment plant in Southern Finland. The investment, totaling over USD 4.33 million, will be partially financed by Business Finland. The plant will process composite waste for efficient use in cement production.


• December 2022 – ArcelorMittal acquired Riwald Recycling, a modern ferrous scrap recycling facility in the Netherlands. In 2021, Riwald processed over 330,000 tons of ferrous metal scrap and operated two fully certified scrap yards. This acquisition and previous ones reinforce ArcelorMittal's commitment to decarbonization, aiming to reduce CO2 emissions from steel production in Europe by 35% by 2030.


• December 2022 – Canada-based American Iron & Metal (AIM) bought a 50 percent share in the Mexican scrap recycling company Kalischatarra, also known as Kalisch Recycling. The purchase was made in August from Chiho Environmental Group Ltd., a company based in Hong Kong, which announced the sale in late December.

REPORT COVERAGE

An Infographic Representation of Scrap Metal Recycling Market

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The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, types, and top applications. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years.

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Report Scope & Segmentation