Steel Scrap Market Size, Share, and Industry Analysis By Type (Ferrous Steel Scrap and Non-Ferrous Steel Scrap), By Source (Home, Industrial, and Obsolete), By End-use Industry (Construction, Automotive, Consumer Goods, and Others), and Regional Forecast, 2026-2034

The global steel scrap market growth is influenced by global economic activity, construction, and manufacturing. Recycled steel adoption is increasing due to the need for environmentally friendly materials and advancements in scrap processing technologies.

According to the Bureau of International Recycling, Main Recycled Steel Importers in the World (Jan-Mar 2023)

• Turkey – 4.929
• India – 3.282
• S. – 1.303
• Korea Rep. -1.093
• EU-27 – 1.048
• Mexico – 0.823
• Taiwan – 0.793
• Indonesia – 0.250
• Canada – 0.213

Steel Scrap Market Driver

Construction Growth May Impact the Market

The construction industry significantly impacts the steel scrap market due to its demand for recycled metals and its role as a source of obsolete steel. The use of recycled metals in construction is driven by the need to lessen the environmental impact of metal mining. Construction companies can also generate income by selling leftover metal from projects to scrap metal recycling facilities, maximizing profits, minimizing waste, and benefiting the environment. The steel industry is already close to 40% made from ferrous metal recycling and this percentage is increasing as more metal is recycled.

• According to the Indian Ministry of Steel, the total quantity of recycled steel used in various sectors, including construction, automobile, and infrastructure sectors, in the country is approximately 30 Million Tonnes (MT). The overall utilization of the steel scrap in the steel sector in India is around 25% of the input material used.

Steel Scrap Market Restraint

Fluctuating Demand from Steel Manufacturing Industry May Restrain Market Growth

A drop in scrap metal prices often signals reduced steel production or a surplus of scrap supply. When steelmakers reduce production or opt for alternative raw materials, the demand for scrap weakens, leading to price drops. Geopolitical uncertainties, such as trade wars, sanctions, and regional conflicts, can disrupt supply chains and affect global trade, causing price volatility. Restrictions on scrap exports and increased tariffs can reduce international scrap trade volumes, further contributing to price volatility.

• Oversupply and weak demand for steel led to a decrease in scrap prices. Turkish mills postponed purchases due to problems with steel sales in domestic and export markets.

Steel Scrap Market Opportunity

Sustainability and Environmental Regulations Creates an Opportunity in the Market

The increasing emphasis on sustainability and environmental regulations are driving the adoption of recycled scrap metal across various industries. Recycling metals reduces the demand for extracting and processing new raw materials, which is especially crucial for metals such as aluminum and copper that require extensive energy for extraction.

• According to National Material Company, recycling one ton of steel saves 2,500 lbs of iron ore, 120 lbs of limestone, and 1,400 lbs of coal.

Segmentation

Key Insights

The report covers the following key insights:

• Key Emerging Trends – For Major Regions
• Key Developments: Mergers, Acquisitions, Partnerships
• Latest Technological Advancements
• Insights on Sustainability
• Porters Five Forces Analysis
• Impact of COVID-19 on the Market

Analysis by Type

Based on type, the steel scrap market is divided into ferrous steel scrap and non-ferrous steel scrap.

The ferrous steel scrap segment plays a crucial role in the market. The growth is driven by increasing efforts from steel manufacturers to reduce carbon emissions. Rising emphasis on sustainability leads to more usage of scrap in end-use industries such as construction and automotive and in secondary production of metals, which reduces production costs with minimal environmental impact.

Analysis by Source

Based on source, the steel scrap market is divided into home, industrial, and obsolete.

The obsolete scrap segment holds a dominant share in the market. This is primarily due to the increasing volume of end-of-life vehicles, appliances, and infrastructure components being dismantled and recycled. The growing global focus on circular economy practices and stricter regulations on waste disposal further contribute to the segment’s prominence.

Analysis by End-use Industry

Based on end-use industry, the market is categorized into construction, automotive, consumer goods, and others.

The construction segment is expected to be the largest consumer of steel scrap market. Growing urban regions require increased steel production for construction, development, and transport uses, contributing to consistent steel scrap production from improvements and demolitions. Similarly, rapidly rising number of end-of-life vehicles (ELVs) in countries such as China contributes to rising scrap volumes.

• According to the International Energy Agency (IEA), in China, the number of new electric car registrations reached 8.1 million in 2023, increasing by 35% relative to 2022.

Regional Analysis

Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

The Asia Pacific region, the largest market for steel scraps, is expected to hold dominant share in the global market. The regional growth is due to rapid industrialization, infrastructure development, and large-scale manufacturing activities in countries such as China and India.

China and India's expanding building and construction activities are set to drive high growth in the steel scrap market. China is a hotspot for firms dealing in scrap metal recycling due to the high usage of recovered metals in its construction industry. India is the world's second major producer of steel, with an accelerating industrial sector and several new projects.

Key Players Covered

The global steel scrap market is fragmented with the presence of a large number of group and standalone providers. In Asia Pacific, the top 5 players account for around 45% of the market.

The report includes the profiles of the following key players:

• ArcelorMittal S.A. (Luxembourg)
• Commercial Metals Company (U.S.)
• Gerdau S/A (Brazil)
• Nucor Corporation (U.S.)
• Radius Recycling, Inc. (U.S.)
• Sims Metal Management Limited (Australia)
• Celsa Group (Spain)
• Stena Metal International AB (Sweden)
• BlueScope Steel Ltd. (Australia)
• China Steel Corporation (China)

Key Industry Developments

In February 2022, ArcelorMittal acquired the Scottish recycling company John Lawrie Metals Ltd., which is part of the firm's strategy to enhance the utilization of scrap steel to reduce CO2 emissions in steel production.