Steel Scrap Market

Steel Scrap Market Outlook (2023 to 2033)

The global steel scrap market is valued at 655 Million Metric Tons in 2023 and is forecasted to jump to 1,050 Million Metric Tons by 2033, rising at a steady CAGR of 4.9% from 2023 to 2033 (forecast period).

A majority of scrap steel is used in the production of new steel. Improvements in the steel industry have had a significant impact on the demand for steel scrap. Also, because scrap metal can be traded internationally, economic conditions can greatly impact demand patterns and price trends.

The need for scrap metal recycling is anticipated to increase over the coming years due to the increased demand for raw materials used in the steel manufacturing industry from rapidly growing economies such as China, India, and Brazil. Rising countries’ priority on expanding recycled steel scrap usage to decrease their carbon footprints is also contributing to market growth. One of the most significant problems currently facing the world's steel sector is global warming.

• The Indian government is constantly attempting to improve the environment and promote sustainability. A steel scrap recycling policy was released in 2019 by the Ministry of Steel, and it outlines the practices that must be used for organized, secure, and environment-friendly product processing and steel recycling.
• Over 32 million metric tons of ferrous scrap were used by essential and optional steel producers in 2019, up 11.4% from the previous year, according to the International Trade Administration.

Report Attributes	Details
Market Size in 2022	624.5 Million Metric Tons
Estimated Market Value (2023)	655 Million Metric Tons
Projected Market Value (2033)	1,050 Million Metric Tons
Global Market Growth Rate (2023 to 2033)	4.9% CAGR
Obsolete Segment Growth Rate (2023 to 2033)	5.3%
Companies Profiled in Market	Baosteel Group Corporation EVRAZ North America BlueScope Steel Ltd. China Steel Corporation (CSC) Commercial Metals Company (CMS) Hyundai Motor Company CITIC Ltd. HBIS Group Co. Ltd.

Which Global Issue is Driving Demand for Steel Scrap?

“Reducing CO2 Emission to Upsurge Demand for Steel Scrap”

Steel scrap is in high demand since recycling scrap greatly lowers CO2 emissions and increases the utilization of recycled steel in the production of several commodities. It is also anticipated that increased auto production will drive huge demand for steel and recycled steel scrap to be used in auto parts.

It is also anticipated that the rapidly rising number of end-of-life vehicles (ELVs) in countries such as China would contribute to rising scrap volumes. The global steel sector, particularly those countries that depend on imports to meet their domestic requirements, faces a problem as a result of a small number of countries placing limitations on the export of steel scrap.

“Quantity Metal Required to Support Manufacturing of Steel”

The metallic volume needed to support steel production, which, in turn, determines the choice between a basic oxygen furnace (BOF) and an electric arc furnace (EAF), domestic scrap availability, and scrap demand, will be the key factors influencing the use of scrap in steel manufacture in the future. The way scrap is used in the production of steel varies greatly around the world depending on the production methods used in each industry and the availability of domestic scrap.

• In areas that extensively rely on EAF technology for the manufacturing of crude steel, the overall share of scrap relative to metallic input may be as high as 85%. Although some markets choose to use direct reduced iron, or DRI, as their main input, overall scrap consumption is quite low worldwide.

Few countries also have inexpensive and convenient access to resources such as natural gas. The quantity and quality of steel products consumed also have an impact on the market since it affects how much scrap is used. In the same way that cash availability and capital costs affect whether BOF or EAF is chosen as the steelmaker, they also have an impact on the use of scrap.

Which Factor Is Expected to Restrict Market Potential?

“Limitation on Export of Steel Scrap”

Even though steel scrap, due to its scarcity, was regarded as a critical resource in many countries, more than 25 countries previously placed various limitations on the export of steel scrap. These rules range from a complete ban on the export of steel scrap to higher taxes on shipments of scrap.

The market is anticipated to experience frequent increases in the price of steel scrap, increased demand for scrap alternatives, and high average steel scrap prices given the current situation.

Country-wise Insights

Why is the Steel Scrap Business Booming in China and India?

“Rising Building & Construction Activities in the Region”

With its accelerating economic progress, Asia Pacific is set to exhibit high growth in the market. Over the forecast period, this is expected to be a significant driver for the worldwide consumption of consumer durables and the construction sectors.

China is the hotspot for firms dealing in scrap metal recycling since the use of recovered metals in the construction industry is high in the country. This is supported by a highly advanced manufacturing sector and rising construction and automotive industries.

After China, India is the world's second major producer of steel. The country's industrial sector is accelerating with several new projects since it is a significant producer and consumer.

Why is the United States Driving Demand for Steel Scrap?

“Technological Advancements in Automotives to Flourish Regional Growth”

The United States presently leads North America in the recycling of steel scrap, and it is anticipated that it will maintain this position over the decade. Technology advancements in the automotive and construction industries are driving up the sales of steel scrap across the country.

For the creation of new steel and cast-iron goods, iron and steel scrap are the essential raw materials. The recovery of goods that are no longer in use or required, as well as the quick availability of scrap from production processes, are extremely important to the United States scrap metal recycling. For more than 150 years, the steel sector has recycled steel scrap in the country.

Category-wise Insights

Why Is There Such High Demand from Construction Segments?

“Effects of Metal Mining on Environment”

The steel scrap market's construction segment is expanding at an exponential rate. The use of recycled metals in construction has been driven by the need to lessen the environmental impact of metal mining.

Where is Obsolete Steel Mostly Acquired from?

“Obsolete Steel Mostly Recycled from Scrapped Automobiles”

Recycling steel scrap saves landfill space, energy, and raw resources. Millions of metric tons of steel cans, vehicles, appliances, building materials, and other steel items are recycled annually by domestic steel sectors. Scrapped automobiles are the main source of obsolete steel.

Compared to making iron and steel from iron ore, the remelting of scrap requires a lot less energy. By using iron and steel scrap, which is obtained through the remelting process, less waste needs to be disposed of in landfills and less scrap steel ends up in the environment.

Steel scrap obtained from the automobile sector is predicted to increase at a CAGR of 5.3% between 2023 and 2033.

Why is the Home Segment Exhibiting High Steel Demand?

“Increasing Demand for Home Furnishing across the World”

Steel is used in over 75% of all household appliances. Steel is being used more and more in home furnishings, including dining tables and chairs, sturdy home office equipment, and metal beds. Steel is the ideal material for all furniture because of its high strength, flexibility, and corrosion resistance.

Steel is a crucial component of architectural details, including room partitions, stairs, steel lamps, and steel tables. Glossy, ultra-modern textured steel floors can typically handle considerable traffic. As such, steel scrap is being widely utilized to manufacture home appliances across the world.

Competitive Landscape

The global market for steel scrap is characterized by an increase in mergers and acquisitions. Key players in the steel scrap market are investing in small businesses that have implemented cutting-edge technologies, established effective procedures, and had a significant presence in regional marketplaces.

• Totall Metal Recycling was purchased by Wieland Ulm in May 2022.
• In May 2019, Nucor Corporation reported that it had made investments to increase the vacuum degassing capacity at its bar mill in Darlington, South Carolina. The mill was able to produce tailored bar products that adhere to some of the highest quality standards in the industry by introducing this capacity.

Key Segments of Steel Scrap Industry Research

• By Type :

  • Obsolete
  • Prompt
  • Home

• By Application :

  • Construction
  • Automotive
  • Shipping
  • Consumer Appliances
  • End Uses

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific & China
  • Middle East & Africa