Global Ferrous Scrap Recycling Market Report and Forecast 2024-2032

Global Ferrous Scrap Recycling Market Outlook

The global ferrous scrap recycling market size was approximately USD 70.40 billion in 2023. The market is assessed to grow at a CAGR of 7.4% between 2024 and 2032, reaching a value of USD 134.37 billion by 2032.

Key Trends in the Market

Ferrous scrap recycling refers to the process of sorting, shredding, media separation, shearing, and baling of ferrous products,  namely, iron and steel, used in a host of equipment and appliances like refrigerators, cans, vehicles, and many others. Ferrous scrap metal (having iron as its primary constituent) is recycled by melting down items like cans, pipes, and appliances to create new steel products. It helps end user industries save costs and energy, by enabling them to utilise waste materials effectively. Steel made from recycled scrap also helps in reducing carbon emissions. Today numerous industries use recycled steel, including construction, automobile, and packaging to cut costs and improve performance.

• Many developed countries are transitioning towards a circular economy system which is based on the values of eliminating waste, reusing products and materials, and reducing pollution. Products made from ferrous scrap recycling are used across a diverse range of sectors, including construction and automotive, among others, supporting the ferrous scrap recycling market growth. Recycling can help save enough energy and power, for instance, steel made using recycled scrap can help save millions of tonnes of iron ore, coal, limestone, and oil, among other valuable resources.

• Companies are expected to increase their adoption of advanced recycling technologies over the forecast period to enhance resource composition and quality of iron and steel, so that increasingly scarce resources can be secured. The adoption of sustainable practices by businesses helps them attract government funding, aiding the market expansion.

• Industries looking to source high quality secondary raw materials are turning to ferrous scrap recycling companies to avoid investing in processing of virgin materials. This indicates that companies engaged in scrap metal recycling are booking permanent positions in the supply chain of the original producer of the material, favouring the ferrous scrap recycling market demand.

Market Segmentation

Based on type, the market is segregated into heavy melting steel, old car bodies, cast iron, and pressing steel, among others. The ferrous scrap recycling market segmentation, based on end use, includes construction, automotive, shipbuilding, equipment manufacturing, and consumer appliances, among others. The major regional markets for ferrous scrap recycling include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global ferrous scrap recycling market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

• Sims Ltd.

• European Metal Recycling Ltd.

• OmniSource, LLC

• SA Recycling LLC

• Barna Steel S.A. (CELSA Group)

• Jansen Recycling Group BV

• Schnitzer Steel Industries, Inc. (Radius Recycling)

• REMONDIS SE & Co. KG (TSR Recycling GmbH & Co. KG)

• American Iron & Metal Company Inc.

• Donald Ward Ltd.

• Others

Market Share by End-Use

The automotive sector is one of the biggest end-users of recycled steel produced from scrap instead of iron ore. Steel scrap is necessary in the production of new steel and is used in components that enhance a car’s safety features and performance levels. Along with this, the demand for ferrous scrap is also expected to increase in shipbuilding sector.

As per the ferrous scrap recycling market analysis, retrofitting is expected to be the next big phase in the construction sector. This will require major construction companies to make use of recycled steel so that smart housing solutions can be created to adapt to the needs of the growing population. Most of the materials that will be needed to construct buildings in 2050 can be derived from 80% of the existing structures in urban cities, thereby emphasising the need for using recycled steel in modern buildings.

Market Share by Region

North America accounts for a significant ferrous scrap recycling market share due to the huge demand of its recycled steel internationally, which has favoured the establishment of recycling infrastructure on a large scale. The US recycles 71% of its steel to ensure its energy and economic security, while Canada recycles more than 66% of its steel to support its manufacturing industries and support livelihoods. This has led to a thriving ferrous scrap recycling market in the region, which is expected to remain robust in the forecast period.

Meanwhile, the market in the Asia Pacific is witnessing significant growth owing to the evolving regulatory landscape and increasing emphasis on waste reduction, creating opportunities for companies to fill in the gap and offer improved recycling capabilities. The market expansion is further supported by the introduction of favourable government policies and legislations in countries like China.

Competitive Landscape

Sims Ltd. was founded in 1917 and is headquartered in Australia. It is a global leader in metal recycling and provides circular solutions for technology and renewable energy. It operates through its three different business divisions, which includes lifecycle services, metal, and resource renewal. It is present in more than 14 countries worldwide and has more than 260 facilities across the world.

European Metal Recycling Ltd. was founded in 1994 and is headquartered in Warrington, United Kingdom. They source scrap metal from various sources and recycle it by relying on environmentally friendly practices, which contributes to sustainable resource management. They have a global presence and rank as one of the topmost metal manufacturers in the world.

OmniSource, LLC, was founded in 1943 in Indiana, United States. It is one of North America’s largest processors, distributors, and managers of scrap and secondary metals. Its primary collection and processing facilities are concentrated in the Midwest, the South, and the Mid-Atlantic regions of the United States. Its national brokerage and trading operation provides market information to both buyers and sellers which helps them in optimising transaction value.

Other ferrous scrap recycling market players include SA Recycling LLC, Barna Steel S.A. (CELSA Group), Jansen Recycling Group BV, Schnitzer Steel Industries, Inc. (Radius Recycling), REMONDIS SE & Co. KG (TSR Recycling GmbH & Co. KG), American Iron & Metal Company Inc., and Donald Ward Ltd., among others.

Key Highlights of the Report