Ferrous Scrap Recycling Market Size, Share & Trends Analysis Report By Sector (Construction, Automotive), By Region (North America, Europe, Asia Pacific), And Segment Forecasts, 2022 - 2030

Report Overview

The global ferrous scrap recycling market size was valued at USD 138.3 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 3.8% from 2022 to 2030. Rising efforts from steel manufacturers to reduce carbon emissions are expected to propel the market growth in the forecast period. Manufacturers are increasing the consumption of recycled steel as it needs less processing on reusing. Moreover, compared to blast furnaces, the inclination towards electric arc furnaces (EAF) is rising, as it reduces carbon emissions by around 70%. These efforts by steelmakers toward sustainability are aiding the market growth.

Recycling carries vital significance in the U.S. owing to its economic benefits, as the industry creates jobs and helps to reduce carbon emissions. Steel is a widely recycled material in the country. Furthermore, positive government policies to reduce carbon emissions are expected to drive market growth.

For instance, in October 2021, the U.S. government and EU announced the world’s first emission-based sectoral arrangement on steel and aluminum by 2024. Together, both countries are working to restrict the entry of dirty steel and limit access to countries that dump steel in both markets. This initiative is expected to boost the production of steel through EAF, which is anticipated to positively influence the ferrous scrap recycling market.

Carbon emissions from the global steel industry must decrease by at least 50% to achieve global energy and climate targets by 2050. As a result, key players are investing in EAF to reduce their carbon emissions and improve energy efficiency. This is expected to enhance the consumption of ferrous scrap in the coming years.

For instance, in September 2022, JSW Steel announced an investment worth USD 1.30 billion to cut carbon emissions in collaboration with Germany-based SMS Group. The company aims to cut its greenhouse gas emissions by 42% to reduce 1.95 tons of carbon dioxide generated per ton of crude steel by 2030.

Sector Insights

Construction dominated the market by accounting for a revenue share of more than 46.0% of the global market in 2021. Large volumes of scrap are generated during the demolition of buildings as steel is used in their beams, reinforcement bars, and other structural parts. In September 2022, Re Sustainability received a contract from the Noida Authority in India to recycle 30 kilotons of waste generated from the demolition of the twin towers of Supertech, located in Noida, India.

Automotive was the second-largest segment of the market in 2021. The growing inclination toward creating a sustainable economy has encouraged several companies to expand their recycling operations. For instance, in February 2021, Scholz Joint Venture and Hongqiao inaugurated a new recycling park in Binzhou, China. It is a EUR 190 million project, which aims at processing 40,000 end-of-life vehicles in its first phase by the end of 2022. The objective of this project is also to provide comprehensive support for the targeted expansion of the circular economy and sustainable development.

The consumer goods sector is anticipated to witness the highest growth rate during the forecast period. The sector holds significant potential owing to the large-scale collection and recycling of scrap worldwide. Over 53 million tons of electronic goods were discarded globally in 2019. Of this, approximately 17% of goods were recycled sustainably. China, the U.S., and India are the top three generators of e-waste in the world.

Regional Insights

In terms of revenue, North America was the second largest regional segment in the world, with a share of over 30.0% in 2021. The growth is attributed to increasing government efforts to create a circular economy and target to achieve net zero greenhouse gas emissions by 2050. This target is expected to positively aid the ferrous scrap recycling market growth in the country.

Increasing usage of EAF in North America is expected to propel market growth over the coming years. For instance, in 2021, the U.S. produced 85.8 million tons of crude steel, of which 69.2% was produced through EAF, whereas Canada’s share through EAF was 453% and Mexico's was 84.1%.

Asia Pacific held a revenue share of over 14.0% in 2021; however, the region dominated the global market in terms of volume. Automotive giants are investing in setting up recycling centers in the region, which is further anticipated to benefit market growth. For example, in 2021, Mahindra MSTC Recycling Private Limited announced its plan to set up 25 automotive and steel recycling units by 2025. As per the company, around 9 million end-of-life vehicles are expected to be recycled annually in the coming years.

The Middle East & Africa region is an emerging market for ferrous scrap, where governments across the region are supporting domestic steel production, thereby propelling demand for scrap. For instance, in July 2022, the UAE government extended a ban on scrap exports till September 2022. This move was done in light to support the local steelmakers.

Key Companies & Market Share Insights

The global ferrous scrap recycling market is characterized by the increasing number of mergers & acquisitions across the world. Major players in this market are acquiring stakes in small companies that have adopted advanced technologies and have efficient processes in place, along with a strong presence in regional markets. For instance, in May 2022, Wieland Ulm. acquired Totall Metal Recycling.

As the demand for ferrous scrap is increasing, established players are using innovative approaches to ensure their uninterrupted ferrous scrap supply. For instance, in August 2020, the recycling division of Tata Steel launched FerroHatt mobile application to source ferrous scrap from traders. The company has taken a significant step with the launch of this new mobile application to organize the ferrous scrap market in India and give the steel industry access to a consistent supply of scrap metals. Some of the prominent players in the global ferrous scrap recycling market include:

• American Iron & Metal Company Inc.

• European Metal Recycling Ltd.

• Innovative Metal Recycling

• OmniSource, LLC

• Sims Limited

• SA Recycling LLC

• Schnitzer Steel Industries, Inc.

• Rudolf Schuy GmbH & Co. KG

• TSR Recycling GmbH & Co. KG

• Ward Recycling Ltd, Inc. 

Ferrous Scrap Recycling Market Report Scope

Global Ferrous Scrap Recycling Market Segmentation

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global ferrous scrap recycling market report based on sector and region:

• Sector Outlook (Revenue, USD Million; Volume, Kilotons, 2017 - 2030)

  • Construction

  • Automotive

  • Consumer Goods

  • Industrial Goods

• Regional Outlook (Revenue, USD Million; Volume, Kilotons, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

  • Asia Pacific

    • China

    • Japan

    • Australia

  • Central & South America

  • Middle East & Africa