The ferrous scrap recycling market was valued at USD xx. xx billion in 2022 and is projected to grow at a CAGR of 1.11% to reach the value of USD xx. xx by 2028.
The increasing recycling rates, better garbage collection systems, building of recycling facilities in both developed and emerging regions, rising economic prosperity, government and industrial support for metal recycling, and rising employment in the scrap metal recycling industry are the key factors accelerating the growth of the Global Ferrous Scrap Recycling Market. Additionally, the lack of rare ferrous metals with their rising usage in a variety of products is driving the growth of the Global Ferrous Scrap Recycling Market. As technology advances, products for recycling scrap ferrous are expected to become outdated. Furthermore, rising industrialization and urbanization, rising disposable income, and awareness regarding the ferrous recycling process are anticipated to drive the Global Ferrous Scrap Recycling Market.
The recycling of ferrous scrap metal is essential to both the world's economy and the environment. People can reduce landfill trash and avoid expensive mining projects by recycling scrap metal instead of buying new ore. This promotes the conservation of natural resources and reduces global energy consumption. One tonne of recycled steel scrap metal is said to save 120 pounds of limestone, 1400 pounds of coal, and 2500 pounds of virgin ore. Recycled ferrous material can reduce energy costs for steel production companies by over 50% compared to purchasing new materials.
Environmental concerns continue to play a significant role in the expansion of the worldwide scrap metal recycling market. An increasingly expanding global economy has raised concerns about the exploitation of the earth's natural resources, the environmental consequences, and approaching resource shortages in the past few decades. By recycling materials, we can reduce our consumption of energy and resources while delaying the depletion of virgin natural resources.
Today, the United States produces a lot of scrap metal—up to 150 million metric tonnes annually. Iron and steel make up 85 million tonnes of that total, but other metals, including aluminum, copper, stainless steel, lead, and zinc, also generate a lot of scraps. The treatment of those metals as scrap can lead to revenue loss. Additionally, we are aware that if that scrap is handled like regular trash and dumped, it will end up in local landfills, resulting in an environmental disaster. Lead and mercury poisoning from scrap metal can contaminate the soil and water nearby, putting both people and wildlife at risk. Because of this, recycling scrap metal has received a lot of attention. As more people became aware of the potential hazards of disposing of waste in landfills, the ferrous scrap recycling market grew stronger. Many companies are becoming aware of the financial and environmental advantages of using recycled scrap in manufacturing. According to the research, the United States recycles more than 120 million metric tonnes of scrap metal annually, which is a large portion of the 150 million tonnes it produces. This alleviates a significant burden on our ecosystem. Hence, this results in the growth of the ferrous scrap recycling market.
A stronger economy is enabling various sectors to grow at a faster rate, for instance, the construction industry. The public and private sectors have made huge investments in large construction and infrastructure projects due to the low unemployment rate. Additionally, the construction of new industrial plants, commercial and residential buildings, road expansion projects, and other structures are strengthening other industries. The scrap metal sector has gained success over the past few years, and business analysts anticipate that this industry will expand significantly during the forecast period. As more and more emerging nations move toward industrialization, the metal recycling business is anticipated to gain importance on a global scale. In addition to hiring hundreds of new employees, scrap metal recyclers have seen an increase in industry revenue in recent years. Today's U.S. economy depends largely on the scrap recycling sector. Scrap recyclers provide manufacturers and factories with a source of cash by purchasing excess scrap from enterprises and building sites while also enabling both parties to maintain their facilities and work sites free of masses of metal garbage.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2022-2028 |
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Base Year |
2022 |
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Forecast Period |
2023-2028 |
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CAGR |
1.11% |
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Segments Covered |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
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Market Leaders Profiled |
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Stainless steel
Carbon Steel
Mild Steel
Cast iron
Others
The stainless steel segment is expected to grow at the highest CAGR during the forecast period. Steel scrap metal is a crucial component for foundries and steel mills all over the world. Recycled steel can be used repeatedly to produce a wide variety of steel elements and is more economical to utilize than virgin ore. The United States is the world's biggest exporter of ferrous scrap metal, according to ISRI. More than half of the nation's entire production of raw steel is made from recycled steel waste, and this steel is exported to more than 90 nations, including China, France, Germany, and Canada. Thus, scrap metal recycling in the United States has a significant impact on the worldwide steel sector.
Building & Construction
Automotive
Electrical & Electronics
Industrial Machinery
Others
The Building & Construction sector is projected to grow at a significant CAGR during the forecast period. Ferrous materials are sourced from a variety of locations by steel recycling companies. Automobiles such as old cars, trains, and planes, abandoned industrial buildings, secondhand home appliances, and manufacturing or industrial trash are a few of the more popular sources. In reality, industrial or manufacturing trash accounts for more than half of the steel scrap metal processing in the US.
North America
Europe
Asia-Pacific
Latin America
Middle East
Africa
The Asia Pacific is expected to hold a significant market share during the forecast period owing to an increasing labor force, rising economic development, and population. Additionally, expanding infrastructure and the automobile industry will be the main drivers of market expansion in emerging markets like China and India. Furthermore, the rising awareness regarding the recycling concept among various companies results in the growth of the ferrous scrap recycling market in the region.
North America is likely to grow at a substantial CAGR due to the increasing technological developments in the recycling industry. Compliance with government policies promoting a sustainable environment and the rising awareness about the recycling concept are further factors contributing to the market's explosive expansion.
In May 2022, Schnitzer Steel Industries, Inc. acquired the operating assets of Encore Recycling LLC in the greater Atlanta Metro area. The purchase, which included two full-service recycling plants with a metal shredding operation and a center for recycled auto parts, was finalized on April 29.
In February 2022, ArcelorMittal acquired John Lawrie Metals Ltd., a Scottish recycling business, as a part of the business's plan to use scrap steel more often in order to reduce CO2 emissions from the steelmaking process. Leading ferrous scrap metal consolidator John Lawrie Metals has three additional locations in northeast Scotland in addition to its Aberdeen hub. Currently, the company exports to mostly Western European steel companies.
In December 2021, Steelmaker Cleveland-Cliffs (CLF) acquired Ferrous Processing and Trading Company for $775M. By cutting out the intermediary and increasing profits for both Cleveland-Cliffs and its clients, the inclusion of FPT will allow Cleveland-Cliffs to acquire back quality scrap directly from its customers. FPT is one of the leading prime ferrous scrap processors and distributors in the United States, accounting for 15% of the domestic prime scrap market. FPT operates 22 scrap processing facilities and processes over 3 million tonnes of scrap annually. Over the previous year ending August 31, 2021, FPT generated EBITDA of almost $100 million.
OmniSource Corp.
Metal Management Inc.
Tube City
Hugo Neu Corp.
Ferrous Processing & Trading Co.(FTP)
Schnitzer Steel Products
PSC Metals
David J. Joseph Co.(DJJ)
AMG Resources Corp.
Commercial Metals Co.(CMC)
Simsmetal America
Alter Scrap Processing
Joseph Behr & Sons Inc.
Camden Iron & Metal Inc.
Mervis Industries
Galamba Metals Group
ArcelorMittal
American Iron & Metal and American Iron & Metal
Frequently Asked Questions
The global ferrous scrap recycling market was valued at USD xxx billion in 2021.
The global ferrous scrap recycling market is projected to grow at a CAGR of xxx%.
In May 2022, Schnitzer Steel Industries, Inc. acquired the operating assets of Encore Recycling LLC in the greater Atlanta Metro area
In February 2022, ArcelorMittal acquired John Lawrie Metals Ltd., a Scottish recycling business, as a part of the business's plan to use scrap steel more often in order to reduce CO2 emissions from the steelmaking process.
The increasing recycling rates, better garbage collection systems, building of recycling facilities in both developed and emerging regions, the rising economic prosperity, government and industrial support for metal recycling, and the rising employment in the scrap metal recycling industry, are the key factors accelerating the growth of the Global Ferrous Scrap Recycling Market.
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