Scrap Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Scrap Market is segmented By Metal (Ferrous, Non-Ferrous), By Type (Recycled, Trashed, Disposed), By Source (Cans, Offcuts, Rejected Parts, Others), By End-User (Construction, Automotive, Shipbuilding, Equipment Manufacturing, Consumer Appliances, Others), and By Region (North America, South America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030 

Scrap Market Size

Global Scrap Market reached US$ 87.2 million in 2022 and is expected to reach US$ 196.9 million by 2030, growing with a CAGR of 16.5 % during the forecast period 2023-2030.

The scrap market encompasses a wide range of materials, each with its unique characteristics, demand drivers, and recycling processes. The global scrap market serves as a vital cog in the wheel of sustainable resource management and circular economy practices. Despite the challenges it faces, the market continues to evolve and witness postive market trends driven by environmental consciousness, economic incentives, and technological advancements. 

As governments, businesses, and consumers increasingly recognize the value of recycling, the scrap market's role is poised to expand further, providing both economic and environmental benefits on a global scale. The non-ferrous segment is the fastest growing sector in the type segment with over half of the market share. 

The primary reason behind the fast paced growth is driven by technological advancements in recycling technology, the volatility in prices of metals and fast paced growth of end-user verticals such as automotive and construction. Similarly, Asia-Pacific is the largest region in the scrap market with over 1/3rd of the market share. The growth and dominance of the respective region is mostly due to expanding industrialization, environmental concerns and advancements in recyclign technology.

Scrap Market Scope

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Scrap Market Dynamics

Technological Advancements in Recycling and Economic Benefits

Advancements in technology have greatly enhanced the efficiency and profitability of the scrap market. Innovations in sorting and processing equipment, such as advanced metal shredders and automated separation systems, have improved the recycling process. The International Resource Panel, an expert group under the United Nations, reports that technological advancements have made it possible to recycle approximately 90% of metals from scrap, significantly reducing reliance on primary raw materials. 

Such technological developments enable the recovery of valuable materials from complex waste streams, increasing the economic viability of recycling operations. Moreover, the economic advantages associated with the scrap market are significant drivers of its growth. Recycling scrap materials reduces the need for costly virgin resource extraction, leading to cost savings for industries. 

Additionally, recycling scrap generates employment opportunities, stimulates economic growth, and contributes to the development of a sustainable and circular economy. According to the United States Environmental Protection Agency (EPA), the scrap recycling industry in U.S. alone generates over US$ 110 billion in economic activity annually and supports around 532,000 jobs.

Environmental Concerns and Growing Demand for Raw Materials

Increasing awareness of environmental issues has led to stringent regulations regarding waste management and sustainable practices. Governments have implemented policies and legislation to reduce waste generation and promote recycling. Such initiatives include extended producer responsibility programs, landfill taxes, and recycling targets. 

The European Union (EU) has set ambitious recycling targets, aiming for 70% of packaging waste and 85% of automotive batteries to be recycled by 2030. Such focus on recycling is expected to drive demand for scrap materials. Further, the increasing demand for raw materials in various industries, such as construction, automotive, and manufacturing. The extraction and processing of virgin materials can be resource-intensive and environmentally damaging. 

Consequently, many industries are turning to recycled materials as a sustainable alternative. According to the United Nations Environment Programme (UNEP), the global demand for metals is expected to increase by 2 to 3 times by 2050. Governments all over the globe are striving to meet this demand sustainably, leading to a greater focus on scrap recycling.

Quality and Contamination Issues

The global scrap market faces several significant restraints that impede its growth and potential contribution to sustainability and resource conservation. Regulatory barriers, quality and contamination issues, inadequate infrastructure, and economic factors all play a role in hampering the market's development. Nonetheless, one of the primary restraint that affects the market is the quality and contamination issues. The scrap market faces significant challenges related to quality control and contamination.

Ensuring the consistency and purity of scrap materials is crucial for their effective utilization in manufacturing processes. However, the presence of impurities, mixed materials, and hazardous substances in scrap shipments often lead to rejections and additional costs for sorting and treatment.

According the United States Environmental Protection Agency (EPA), in 2020, nearly 28% of scrap materials received by U.S. recyclers were contaminated, requiring additional processing and sorting. The respective contamination leads to increased operational expenses and reduces the overall efficiency of the recycling process.

Scrap Market Segmentation Analysis

The global scrap market is segmented based on metal, type, source, end-user and region.

Increasing Demand for Long-Distance Travel and Advancements in Charging Technology

As the range of electric vehicles improves, there is a growing demand for fast-charging solutions to facilitate long-distance travel. Fast charging stations allow EV owners to recharge their vehicles quickly during road trips, reducing range anxiety and providing a comparable experience to refueling at traditional petrol stations. Government data from U.S. Department of Transportation shows that the number of long-distance trips (over 50 miles) made by light-duty EVs increased by 13% in 2020 compared to the previous year. 

The above market trend emphasizes the need for an extensive and reliable fast charging infrastructure, driving the growth of the scrap market. Moreover, technological advancements in fast charging technology have significantly influenced the growth of the scrap market. Innovations in charging infrastructure, such as higher charging power, improved efficiency, and interoperability, have made fast charging more accessible and convenient for EV owners. 

Governments and industry stakeholders are actively investing in research and development to enhance charging infrastructure and battery technologies. The respective fact has led to the development of fast charging standards such as the Combined Charging System (CCS) and the CHAdeMO protocol, which are widely used in fast charging networks globally. The International Electrotechnical Commission (IEC) and other standardization bodies work to ensure compatibility and interoperability of scrap, driving the adoption of fast charging solutions.

Scrap Market Geographical Share

Rapid Expansion of Economies and Substantial Investments in Infrastructure Development

The Asia-Pacific region has emerged as a powerhouse in the scrap market, demonstrating remarkable growth and resilience in recent years. Asia-Pacific has witnessed a rapid expansion of its economies, leading to increased industrialization and urbanization. The aforementioned growth has translated into a surge in scrap generation, owing to the escalating consumption of raw materials, manufacturing activities, and infrastructure development. 

According to the Ministry of Commerce, China, the region's largest economy, the country's total scrap imports grew significantly by 32% from 2020 to 2022. The respective robust growth showcases the heightened demand for scrap materials in China, which has been the driving force behind the Asia-Pacific's overall market growth.

Similarly, Asia-Pacific countries have made substantial investments in infrastructure development, including transportation networks, residential buildings, and commercial complexes. Such projects require a substantial amount of steel, copper, and other metals, which can be efficiently sourced from the scrap market. 

The Ministry of Land, Infrastructure, Transport and Tourism of Japan reported a 14% increase in scrap metal consumption in the country between 2020 and 2023, primarily driven by infrastructure development projects. The respective facts boost the regional share of Asia-Pacific in the market.

Scrap Market Companies

The major global players in the market include ArcelorMittal, Nucor Corporation, Commercial Metals Company, Sims Metal Management Limited, Aurubis AG, Stena Metall AB, Tetronics Limited, Waste Management, Inc., Enviro-Hub Holdings Limited and BOLIDEN AB.

COVID-19 Impact On Scrap Market Growth

The COVID-19 pandemic had a profound impact on the global scrap market, disrupting supply chains, reducing industrial production, impeding international trade, and raising environmental concerns. The pandemic led to a sharp decline in industrial production, resulting in decreased demand for scrap materials. 

The closure of manufacturing facilities and the subsequent slowdown in construction activities negatively impacted the demand for metal scrap, plastics, and other recyclable materials. Sources report a decline of approximately 25% in the global demand for scrap metal in 2020, leading to a surplus in inventories and price volatility.

However, the pandemic's impact on the scrap market has raised concerns regarding environmental sustainability. With reduced recycling rates and increased reliance on virgin materials, the carbon footprint of industries has grown. Statistics demonstrate a decline of around 15% in global recycling rates for various materials, including metals and plastics, in 2020. The respective setback highlights the need for renewed focus on recycling and sustainable waste management strategies post-pandemic.

Key Developments

• On May 11, 2022, ArcelorMittal acquired over ten steel scrap recycling facilities capable of processing 400,000 tonnes from ALBA Electronics Recycling, an environmental services and recycling company.
• On February 13, 2023, Indian government announced its initiative to reduce the GST rate of steel scrap from 18% to 5%. The respective initiative is aimed to minimize the cash flow burden faced by supply chains and prevent the generation of fraudulent input invoicing.
• On July 10, 2023, Assofermet, an association of Italian scrap distributors announced the plant to increase the price of scraps in the country by 10 Euro/Mt to increase distributors stocks by limiting sales to mitigate the shortage of scrap availability in the market.

Why Purchase the Report?

• To visualize the global scrap market segmentation based on metal, type, source, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of scrap market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global scrap market report would provide approximately 69 tables, 69 figures and 190 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies