Steel Scrap Market Size, Trends, Share, Growth, and Opportunity Forecast, 2024 - 2031 Global Industry Analysis By Type (Obsolete Scrap, Prompt Scrap, and Home Scrap), By Grade (Shredded, Busheling, Heavy Melting Steel, Turnings & Borings, Plate and Structural), By Processing Method (Chemical Processing, Mechanical Processing, Thermal Processing, and Others), By End-use Industry (Construction, Automotive, Manufacturing, Energy, Packaging, Shipbuilding, and Others) and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

The Global Steel Scrap Market was valued at USD 710.6 Million in 2023 and is anticipated to reach a value of USD 1,018.2 Million by 2031 expanding at a CAGR of 4.7% between 2024 and 2031.

Steel scrap is a type of metal which has been previously manufactured and used and then used in the production of new steel. It is a recycled steel which has a low-emitting source of the metal. Steel scrap can be recycled, melted, and used as fresh steel or consumption to create new steel. It is an essential raw material in steelmaking that plays a crucial role in the steel industry. There are various types of steel scrap including obsolete scrap, prompt scrap, and home scrap. Recycled steel scraps are used extensively in the construction automotive, manufacturing, energy, packaging, shipbuilding, and other industries. Steel scrap offer several benefits including environmental benefits, economic efficiency, resource conservation, waste reduction, and sustainability. Steel scrap undergoes various processing steps such as shredding, sorting, baling and bundling, and shearing. The market for Steel scrap is experiencing significant growth due to factors such as rising construction activities, stringent environmental regulations, global economic growth, and increasing urbanization and industrialization.

Steel Scrap Market Major Driving Forces

Rising Construction Activities: With the rapid economic growth, urbanization, and infrastructure development there is increase in construction activities. This surge in construction activities lead to surge in demand for steel, which significantly drives demand for steel scrap as a as a raw material for steel production.

Stringent Environmental Regulations: Stringent regulations on reducing carbon emissions and resource depletion prompt the use of recycled steel scrap. Growing emphasis on sustainability is encouraging the use of recycled materials to reduce carbon emissions.

Global Economic Growth: With accelerating economies progress, particularly in emerging markets has led to increased demand for steel scrap. Economic growth drives growth in construction, automotive, and manufacturing industries which is creating higher demand for steel and consequently, steel scrap.

Increasing Urbanization and Industrialization: The increasing urbanization and industrialization significantly drive the steel scrap market. As cities expand, the construction of buildings, infrastructures, and transportation systems creates substantial demand for steel scraps.

Steel Scrap Market Key Opportunities

Technological Advancements: Advancements in recycling technologies to enhance the efficiency and quality of steel scrap processing provide significant opportunities for market expansion. Integration of automation and digital technologies in scrap sorting and processing can improve operational efficiency, accuracy, and safety while reducing labor costs.

Shift Towards Sustainability: The growing shift towards sustainability through the recycling of materials provide notable opportunities for market growth. The global push for sustainability and reducing carbon footprints provides an opportunity for steel scrap manufacturers to adopt green steel production.

Rising Demand for Home Furnishing: The increasing demand for home furnishing across the globe is expected to boost the market growth. Steel is being highly used in home furnishing, such as home office equipment, chairs, dining tables, kitchen trolleys, and other home furnishing. Steel has high strength, flexibility, and corrosion resistance which make it ideal material for all furniture.

Steel Scrap Market Key Trends

·         The growing need for metal recycling due to increased demand for raw materials used in manufacturing is a key trend influencing the demand for steel scraps

·         Growing preference for using recycled steel scrap to reduce their carbon footprints is also contributing to the market growth  

·         Stringent environmental regulations to promote sustainability and improve the environment are boosting demand for steel scraps

·         Growing emphasis on sustainability and circular economy are encouraging the use of recycled materials, including steel scraps

·         Sustainable packaging and shipping solutions to reduce the environmental impact of steel scrap distribution

·         The integration of automation and digital technologies in the scrap sorting and processing industry to enhance operational efficiency and accuracy

·         Ongoing research and development efforts for the development of new steel grades from scrap are gaining traction

Region-wise Market Insights

Asia Pacific accounted for the largest market share at 36.3% in 2023 whereas, Asia Pacific is expected to register the fastest growth, expanding at a CAGR of 5.0% between 2024 and 2031.

Asia-Pacific region is the world’s largest consumer and generator of steel scarp owing to its rapidly growing steel production. This dominance can be attributed to the rapid urbanization, industrialization, infrastructure development, and government initiatives to promote recycling and sustainability in the region. In North America, the demand is driven by booming construction industry, substantial investments in infrastructure projects, and advanced manufacturing facilities. In Europe, the market growth is driven by stringent environmental regulations, and strong focus on sustainability and recycling. The Middle East and Africa has been witnessing a growing demand for steel scarps due to growing construction activities whereas, in South America, the market is influenced by economic growth, with urbanization, industrialization, and investments in infrastructure development.

Market Competition Landscape

The global steel scrap market is characterized by intense competition among well-established and emerging players. Key players in the steel scrap market engage in strategies aimed at gaining a competitive edge. These strategies include product innovation, design differentiation, and the incorporation of sustainable and eco-friendly materials to meet evolving consumer preferences. Established brands leverage their reputation for quality and reliability to maintain market share, while newer entrants focus on disruptive innovations and unique selling propositions.

Major companies operating in the industry are increasingly investing in cutting-edge technologies in manufacturing process to enhance the efficiency and accuracy. Moreover, these companies are also investing in research and development activities to develop new and innovative steel grades from scraps.

Key players in the global steel scrap market implement various organic and inorganic strategies to strengthen and improve their market positioning. Prominent players in the market include:

·         ArcelorMittal

·         Baosteel Co.,Ltd.

·         EVRAZ plc

·         Gerdau S/A

·         Stockach Aluminium GmbH

·         Inter Metals GmbH

·         Commercial Metals Company (CMC)

·         Maanshan Iron & Steel Company Limited

·         BlueScope Steel Limited

·         Nucor Corporation

·         Metalico, Inc.

·         Oryx Stainless Group

·         Schnitzer Steel Industries Inc.

·         Sims Metal Management Limited