Steel Scrap Market, By Scrap Type (Old Scrap and New Scrap), By End-Use Sector (Construction, Automotive, Shipbuilding, Equipment Manufacturing, and Consumer Appliances), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Trends, Analysis, and Forecast Till 2034

Steel Scrap Market was valued at USD 686.7 Million in 2024 and is projected to grow at a CAGR of 4.0% to reach USD 980.5 Million by 2034.

Scrap consists of recyclable materials left over from product manufacturing and consumption, such as parts of vehicles, building supplies, and surplus materials. Unlike waste, scrap has monetary value, especially recovered metals, and non-metallic materials are also recovered for recycling. While iron ore remains the primary source of steel making used or re-used steel in the form of scrap is the secondary raw material for the steel industry. Steel industry is characterized by the presence of a large number of small steel producers who utilize scrap with other inputs in EAF/IF for steel making. The best available technology as evolved from time to time for the activities defined by shredding, shearing, baling, slitting. 

Impact of COVID-19 on the market

The mining industry accounts for a vital share of the global economy and is responsible for supplying key raw materials for several applications and end-use industries, thus being a key sector of focus amidst the ongoing pandemic outbreak. The iron ore prices reached above USD 90 per ton amidst the pandemic situation which may negatively impact the end-use industries. Biopharmaceutical firms are at the leading position of the human response to the coronavirus pandemic. The biotech entities are investigating SARs-Cov-2 at an unprecedented rate and a significant amount of funds are being put into the R&D. With the several candidates in trial, the public and private sectors are expected to work in unison for the estimative period, until a vaccine is developed for Covid-19. This report will quantify the impact of this pandemic on the Steel Scrap market.

Growing Concerns towards the Depletion of Natural Resources

Scrap metals can be recycled repeatedly without any characteristic loss. The reuse of metals reduces the carbon footprint and helps in betterment of the environment. Scrap metal recycling and reusing helps to create a sustainable future. Scrap metal recycling reduces greenhouse gas emissions. As per Institute of Scrap Recycling Industries (ISRI), scrap metal recycling may cut 300 to 500 million tons of greenhouse gas emission.

Technological Advancement and Government Regulations

The existing products are likely to be antiquated with development of technology. The rise in technology, industrialization & urbanization, disposable income are expected to be the factors responsible for driving the scrap metal recycling market during the forecast period. Development of recycling facilities in developed and developing regions, better waste collection systems, and promotion of metal recycling by manufacturers and governments is likely to help in business growth and create new business opportunities and increase employment. Canadian Association of Recycling Industries (CARI) states that the scrap metal recycling industry in Canada employs 1, 60,000 people directly and indirectly.

Conversely, unorganized flow of metals and poor scrap collection zones is anticipated to hamper the growth of the Steel Scrap market during the forecast period.

Steel scrap market is segmented based on the scrap type, end-use sector, and region.

On the basis of the scrap type, the steel scrap market is segmented into old scrap and new scrap. On the basis of end-use sector, the global market is categorized into construction, automotive, shipbuilding, equipment manufacturing, and consumer appliances.

Regional Insights:

In the region, the steel scrap market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific is the fastest-growing market for metal recycling due to its increasing economic growth. It accounted for over a third of the world’s GDP, according to a paper published by World Economics in February 2017. According to the Population Reference Bureau, the fastest-growing consumer markets of China, India, and other Asia Pacific countries had a combined population exceeding four billion people (as of 2018). In Japan, Obsolete will reach a market size of 20.2 Million Tons by the close of the analysis period. As the world's second largest economy and the new game changer in global markets, China exhibits the potential to grow at 6.6% over the next couple of years and add approximately 54.3 Million Tons in terms of addressable opportunity for the picking by aspiring businesses and their astute leaders.  The United States will maintain a 3.2% growth momentum. Within Europe, which continues to remain an important element in the world economy, Germany will add over 6.8 Million Tons to the region's size and clout in the next 5 to 6 years. Over 5.4 Million Tons worth of projected demand in the region will come from Rest of Europe markets. Several macroeconomic factors and internal market forces will shape growth and development of demand patterns in emerging countries in Latin America and the Middle East.

Steel Scrap Market Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034.  For the purpose of this study, has segmented the global steel scrap market report based on scrap type, end-use sector, and region.

Steel Scrap Market, By Scrap Type:

• Old Scrap
• New Scrap

Steel Scrap Market, By End-Use Sector:

• Construction
• Automotive
• Shipbuilding
• Equipment Manufacturing
• Consumer Appliances

Steel Scrap Market, By Region:

• North America
  • Middle East & Africa
    • • GCC
      • Israel
      • South Africa
      • Rest of Middle East & Africa
  • Latin America
    • • Brazil
      • Mexico
      • Rest of Latin America
  • Asia Pacific
    • • China
      • India
      • Japan
      • South Korea
      • Rest of Asia Pacific
  • Europe
    • • Germany
      • UK
      • France
      • Russia
      • Italy
      • Rest of Europe
  • • U.S.
    • Canada

The key players operating in the global steel scrap market include ArcelorMittal S.A., Baosteel Resources Co., Ltd., Commercial Metals Company, Gerdau Ameristeel Corporation, Maanshan Iron & Steel Company Limited, Metalico Inc., Nucor Corporation, Oryx Stainless Group, Schnitzer Steel Industries Inc., and Sims Metal Management Limited. Their global R&D division is currently working with Worldsteel Association on a number of recycling projects. Also they have been collaborating with the automotive industry to analyze how much more value can be achieved by disassembling vehicles before they are shredded to recover scrap. For instance, In November 2019, ArcelorMittal invested in new sustainability program in Europe with the aim to secure Responsible Steel site certification for all its ArcelorMittal Europe - Flat Products sites.

• ArcelorMittal S.A.
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Overview
  • Business Strategies

• Baosteel Resources Co., Ltd.
• Commercial Metals Company
• Gerdau Ameristeel Corporation
• Maanshan Iron & Steel Company Limited
• Metalico Inc.
• Nucor Corporation
• Oryx Stainless Group
• Schnitzer Steel Industries Inc.
• Sims Metal Management Limited

“*” marked represents similar segmentation in other categories in the respective section