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The scrap metal recycling market size is estimated to grow by 340.73 million tons at a CAGR of 8.15% between 2022 and 2027. The increase in the prices of raw materials is making recycling a more cost-effective alternative to mining, driving demand for recycled metals. The rise in the role of metal recycling in key end-user industries is driven by factors such as the increasing focus on sustainability and the need to reduce carbon emissions. Additionally, rising concern about the impact of mining on the environment is leading to increased interest in recycling as a more environmentally friendly option.
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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 aluminum, 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 market is witnessing significant growth, driven by the increasing demand for recycled materials in various industries such as automotive, construction, and electronics. With the rising focus on sustainability and the circular economy, there's a growing emphasis on recycling materials like aircraft components, aluminum, and electrical components. Developing countries, including those in Asia, are contributing to this growth, as they strive to meet the demand for raw materials in their rapidly expanding economies. Additionally, the shift towards electric vehicles (EVs) is expected to further boost the demand for recycled metals like aluminum in the automotive sector. 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.
The increase in prices of raw materials is notably driving market growth. Since the beginning of 2017, prices of nonferrous metals have been unstable, while prices of ferrous metals have steadily risen. Raw material prices like iron ore and coal, used in steel manufacturing, have also increased. Base metals such as aluminum and copper have seen more price fluctuations, largely due to China's stricter environmental regulations on metal imports. This has had implications for various sectors, including construction projects, particularly in developing countries where demand for these materials is high. Additionally, sectors such as doors, e-commerce sales, and eCommerce users have felt the impact, along with the electric vehicles (EV) industry, which relies heavily on electrical components made from these metals.
Moreover, the volume of supply and the quality of scrap are crucial factors influencing scrap metal prices. Despite import/export restrictions and tariffs on metals like steel and aluminum in countries such as the US, Canada, and China, the global market is strongly influenced by the demand-supply balance, especially in key sectors like healthcare, automotive, and construction. This factor is expected to drive the growth of the global metal recycling market in the forecast period.
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 market during the forecast period.
An increase in tariffs for steel imports is the major challenge impeding market growth. The imposition of 25% and 10% tariffs on steel and aluminum 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 member countries such as Canada, Mexico, and Germany were excluded. However, the blanket tariffs were extended to all countries with effect from June 2018.
However, the decision to increase import tariffs was taken primarily to promote the domestic production of steel and aluminum. Thus, the uncertainty in the trade of steel and aluminum among leading countries will affect the global metal recycling market during the forecast period.
The metal recycling 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 Market Customer Landscape
Companies 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 companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market 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.
Aluminum Scrap Recycling Market: Aluminum Scrap Recycling Market Analysis APAC, North America, Europe, Middle East and Africa, South America - China, India, US, Germany, South Korea - Size and Forecast
Steel Scrap Market: Steel Scrap Market by End-user, Source, and Geography - Forecast and Analysis
Metal Machining Scrap Equipment Market: Metal Machining Scrap Equipment Market by Application, Type, and Geography - Forecast
The market plays a crucial role in the sustainability efforts of the aerospace sector, automotive industry, and other manufacturing industries. With Stringent environmental regulations and a growing focus on Environmental impacts, the demand for recycled metals like recycled aluminum, recycled copper, and recycled steel is increasing. This market also contributes to Sustainable materials for various applications such as aerospace components, vehicle bodies, and structural elements. Despite challenges like supply chain disruptions, the market offers new growth opportunities and supports Infrastructure development in Asia's economies and beyond.
Furthermore, the market is a key player in the recycling ecosystem, offering sustainable solutions for a variety of industries. With a focus on environmental awareness and the energy crisis, this market contributes to reducing the need for virgin metals in sectors like aerospace materials and automobiles. It supports E-waste recycling and provides materials for aviation, household appliances, and industrial production. Despite challenges like the decline in industrial production, it remains crucial for sustainability efforts and the efficient use of resources, especially for precious metals like palladium and platinum.
Moreover, the market plays a crucial role in sustainability, especially in industries like the automotive and aviation markets. It processes materials such as body panels, engine blocks, and chassis from motor vehicle production and fuselages and wings from the aviation sector. This market supports consumer spending by providing recycled materials for products like bed frames, chairs, and metal furniture pieces. It also contributes to national defense programs through the recycling of materials like titanium for safety components and defense budgets. Automotive wiring, circuit boards, connectors, and electronic devices are essential components in both the automotive and aviation markets, serving the needs of the Canadian population with advanced collection systems.
Scrap Metal Recycling Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.15% |
Market growth 2023-2027 |
340.73 million tons |
Market structure |
Fragmented |
YoY growth (%) |
6.89 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 33% |
Key countries |
US, Canada, China, Japan, India, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
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 |
Market dynamics |
Parent market analysis, Market Forecasting, 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. |
Customization purview |
If our market 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
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