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The scrap metal recycling market is estimated to grow at a CAGR of 8.15% and the size of the market is forecast to increase by 340.73 million tons between 2022 and 2027. The growth of the market depends on several factors, including an increase in the prices of raw materials, a rise in the role of metal recycling in key end-user industries, and rising concern about the impact of mining on the environment.
This report extensively covers market segmentation by type (ferrous metals and non-ferrous metals), application (construction, automotive, consumer goods, and industrial goods), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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In 2017, in terms of market size, APAC dominated the market with a share of USD 149.58 million tons. Additionally, US was the largest contributor of market share USD 81.44 million tons. The market segment ferrous metals recorded the largest contribution in market share of USD 256.78 million tons and continue to grow.
The reports categorize the global metal recycling market as a part of the global environmental and facilities services market within the global industrials market. The global environmental and facilities services market comprises service companies providing environmental and facilities maintenance services, including waste management, facilities management, and pollution control services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The increase in prices of raw materials is notably driving the market growth, although factors such as an increase in tariffs for steel imports may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Scrap Metal Recycling Market Driver
The increase in prices of raw materials is notably driving market growth. While the prices of nonferrous metals have been volatile since the beginning of 2017, the prices of ferrous metals have been showing a steady upward trend. The prices of raw materials such as iron ore and coal, which are used for manufacturing steel, have also increased during the period. The prices of base metals such as aluminium and copper were more volatile, primarily owing to China's revised environmental regulations regarding the import of metals.
The volume of supply and scrap quality are the key determinants of scrap metal prices. While metals such as steel and aluminium have been imposed with import/export restrictions and tariffs in different countries such as the US, Canada, and China, the base demand-supply correlation is strong for the global scrap metal recycling market primarily due to requirements across key sectors such as healthcare, automotive, and construction. This would continue to drive the growth of the global metal recycling market during the forecast period.
Key Scrap Metal Recycling Market Trend
The concentration of the steel industry is the primary trend driving the market growth. The steel industry is moving toward concentration in a bid to counter the worldwide overcapacity of steel prevalent since 2012. China and European countries have taken major steps to curb the structural overcapacity of steel. Major metal manufacturers are working together to increase the concentration of the metal manufacturing industry.
For instance, in June 2020, Altos Hornos de Mexico SAB de CV entered into a non-binding agreement with Lamina y Placa Comercial SA de CV to merge their assets under a new company and consolidate their production and processing capacities. These associations among key market players would make the steel industry highly concentrated and largely restrict the number of new entrants into the steel manufacturing sector. This trend is likely to impact the global scrap metal recycling market during the forecast period.
Key Scrap Metal Recycling Market Challenge
An increase in tariffs for steel imports is the major challenge impeding market growth. The imposition of 25% and 10% tariffs on steel and aluminium scrap imports by the US in March 2018 resulted in uncertainty in the metals industry. The imposition of tariffs was primarily expected to impact China the most, as the North American Free Trade Agreement (NAFTA) and the European Union members countries such as Canada, Mexico, and Germany was excluded. However, the blanket tariffs were extended to all countries with effect from June 2018.
The decision to increase import tariffs was taken primarily to promote the domestic production of steel and aluminium. Thus, the uncertainty in the trade of steel and aluminium among leading countries will affect the global metal recycling market during the forecast period.
Key Scrap Metal Recycling Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Scrap Metal Recycling Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Tata Sons Pvt. Ltd. - The company offers metal recycling at their steel recycling plant at Rohtak, Haryana which is equipped with various tools such as Shredder, Baler, and Material Handler under the metal recycling segment. Under the telecommunication segment, the company offers telecommunication services, telecom infrastructure, and internet services. Additionally, the company also includes activities relating to oil and gas exploration, realty and infrastructure, business process outsourcing, defense and homeland security, and others.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Based on type, the market is segmented into ferrous metals and non-ferrous metals. The market share growth by the ferrous metals segment will be significant during the forecast period. Steel is the most popular ferrous metal owing to its widespread application in key industries such as construction and automotive. Recycled iron and steel scrap constitute the major raw materials to produce new steel and cast-iron products. The US was the largest exporter of ferrous scrap in 2019. Its export volume of metal scrap was sourced predominantly from the automotive sector and other sources, such as material collected from used rails, ships, boats, and other vessels. Turkey was the major importer of ferrous scrap in 2021, imported primarily from the US.
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The regulation on scrap imports in key markets such as China and India will pose a challenge to the global ferrous scrap recycling market during the initial phase of the forecast period. However, the industrial and infrastructural growth in the rapidly developing economies in South-East Asia and the Middle East will drive the demand for ferrous scrap during the forecast period.
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APAC is projected to account for 33% of the global market share growth by 2023. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC dominated the global metal recycling market. Japan was the largest exporter of ferrous scrap in the region. The total ferrous scrap imports to Asia accounted for around 32% of the global ferrous scrap imports. China was the largest consumer of nonferrous metals, specifically aluminium, copper, and zinc scrap, in 2019. China's ban on scrap imports, coupled with the Chinese government's crackdown on induction furnaces to curb the overproduction of steel, will trigger the increased use of scrap metal recycling in the country. Also, large investments in infrastructural developments in South Asian and south-east Asian countries such as Indonesia, Vietnam, India, and Thailand will drive the demand for scrap metal recycling in APAC. The growing demand for steel and the National Scrap Policy drafted by the Government of India in 2019 are expected to support the domestic ferrous scrap processing ability in the country, leveraging the growth of the market in focus in APAC during the forecast period.
The abolition of lockdown limitations in APAC was followed by the launch of vaccination efforts in 2021. As a result, end-user industries, including aerospace, construction, automotive, and others, were able to resume business operations, which further fueled the expansion of the metal recycling market in APAC during the period forecasted.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by type, application, and region.
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Scrap Metal Recycling Market Scope |
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Report Coverage |
Details |
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Page number |
168 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.15% |
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Market growth 2023-2027 |
340.73 million tons |
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Market structure |
Fragmented |
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YoY growth (%) |
6.89 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 33% |
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Key countries |
US, Canada, China, Japan, India, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Advance Hydrau-Tech Pvt. Ltd., American Iron and Metal Co. Inc., ArcelorMittal SA, Aurubis AG, Cherry City Metals, Commercial Metals Co., DOWA HOLDINGS Co. Ltd., ENF Ltd., Gerdau SA, Goldstein Group, Midwest Industrial Metals, Nucor Corp., Pacific Steel and Recycling, REMONDIS SE and Co. KG, Schnitzer Steel Industries Inc., Sims Ltd., Steel Dynamics Inc., Tata Sons Pvt. Ltd., and Texas Disposal Systems |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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