Recycled Metal Market

Recycled Metal Market Size-(2023-2028)

The recycled metal market share value is expected to grow at a CAGR of 7.0% during the forecast period 2023-2028 to reach $ 92.1 billion by 2028, where the value was estimated at US $61.4 billion in 2022.

Recycled metal market overview:

Among all the other metals like copper, aluminum, and others, steel is the most sought-after metal in the recycled metal market. Recycled metals are mostly used for construction, automotive’s, electronics, and other consumer goods like toys and decorative items. Precious metals like gold and silver are used in batteries. Thus they are also reused in either batteries and other electronic items or for making jewelry. Also, metals like lead, zinc, and nickel are removed from machines used for procedures involving charged elements, so they are mostly processed and reused for the same machines or the production of different alloys.

Recycled metal market drivers:

Increasing demand from various sectors of the market is responsible for the growth of the recycled metal market growth. Various industries such as automobile, construction, electronics, and packaging in almost all the sectors require recycled metal as using recycled metal reduces the production cost and still provides quite similar results in the final product. One more reason being the costs of primary metals fluctuate from region to region as well as from time to time. Thus, to cope with the price of the market price of the product, industries perceive using recycled metals as a cost-effective option. 

With advancements in technology, recycling metals has become easier as well, as the quality of metal recycled has improved. Due to this, the availability of recycled metal in the market has increased. Along with technological advancements, industries also have to work abiding by some of the government rules and policies regarding sustainable manufacturing practices. Some of the policies also provide tax benefits and other subsidies to manufacturers for achieving the recycling targets in the given time.

Nowadays, consumers also prefer products having recycled metal used in them. For instance, NOTHING a smartphone manufacturing company uses components only made with recycled aluminum in their phones.

These are the driving factors that can let the recycled metal market towards growth.

Recycled metal market restraints:

To recycle the metal, the scrap metal also needs to be of good quality. An insufficient supply of scrap metal ultimately leads to insufficient recycled metal produced. Various factors like improper sorting of scrap metal and deficiency in the collection of scrap material are limiting the shares of recycled metal produced.

Apart from that, though we are witnessing technological advancements, its implementation at the ground level is restricted to a few fewer users. Thus, most metal recycling plants use outdated recycling technology, which results in less production at a higher cost of production.

These are the major factors that limit the recycled metal market growth.

Recycled metal market opportunities:

The opportunity for growth in the recycled metal market has been increasing now more than ever as all the developing countries are moving towards industrial development, which is directing people to urban areas. Due to the need for infrastructural expansion in cities, the recycled metal market has gained immense importance for the supply of recycled metal for construction as well as industrial use.

Nowadays, the concept of circular economy is emerging, which aims at minimum wastage of resources. So, the government is promoting its implementation, and also industries are willingly adopting this initiative. 

This kind of approach from industry and support from the government can lead the recycled metal market toward growth.

COVID-19 impact on the recycled metal market :

The covid-19 pandemic had a negative impact on the recycled metal market. During the lockdown, construction work, automobile production, and also the production of other goods like cans and decorative articles came to a halt. Also, the complete supply chain got disturbed during the pandemic, which resulted in an imbalance of demand and supply even when the lockdown was lifted, and other industries came back to normal.

RECYCLED METAL MARKET REPORT COVERAGE:

Recycled metal market segmentation:

By Metal Type:

• Ferrous
• Nonferrous

The ferrous segment is gaining traction over the shares of the market. Metals that contain iron are known as ferrous metals, whereas metals which do not contain iron are nonferrous. The ferrous segment is leading the recycled metal market, and among all the ferrous metals, iron and steel are the most used and recycled metals.

By Scrap Type:

• New scrap

• Old scrap

Old scrap is ruling the recycled metal market as it is available at lower prices, and therefore it is a more economical option for the recycled metal market to grow. New scrap is the one that is generated during the manufacturing of other products in the manufacturing plant, whereas old scrap can be said the one which is consumer-used scrap. 

By Usage:

• Construction

• Automobiles

• Electrical & electronics

• Others (Toys and decoratives)

The automobile segment is leading the recycled metals market in terms of revenue generation. At the same time, the electrical and electronics segment ensures the reuse and recycling of metals like lead, gold, and silver, which are rare in nature. Thus, the electrical and electronics industry is said to grow at a rapid pace in the near future. The construction segment has had a very slow rate of growth in the recycled metal market recently. 

By Region:

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa 

Asia Pacific region is leading the recycled metal market, which is followed by Europe, and North America stands in third place in the recycled metal market worldwide. Asia Pacific has the lead over other regions due to the rapidly growing countries like India and China, which are the biggest customers of the recycled metal market in the region.

Key Players:

• Tata Steel

• ArcelorMittal

• European Metal Recycling Limited

• Nucor Corporation

Recycled metal market recent developments:

• In 2022, Nucor Corporation announced their plan to set up a sheet mill in West Virginia, which will fulfill the requirement of the Northeast and Middle West regions of the United States.

• In 2021, to achieve betterment in recycled metal production, Steel Dynamics Inc acquired three recycling companies in Texas to control the industrial and urban regions, which are the key source of scrap.

• ArcelorMittal’s R&D is working with the World steel association on various recycling projects.