Global Scrap Market - 2023-2030

Market Overview

Global Scrap Market reached US$ 87.2 million in 2022 and is expected to reach US$ 196.9 million by 2030, growing with a CAGR of 16.5 % during the forecast period 2023-2030.

The global scrap market refers to the international trade and recycling of discarded materials, including metals, paper, plastics, and electronic waste. It functions as a critical link between the supply and demand for secondary raw materials. The global scrap market has emerged as a crucial component of the international economy, playing a pivotal role in resource conservation, sustainability, and economic growth. With the increasing focus on environmental responsibility, the scrap industry has gained significance as a key player in the global supply chain.

The non-ferrous segment is witnessing rapid growth within the scrap market, capturing more than half of the market share. The accelerated growth can be attributed to significant technological advancements recycling technologies and increasing volatility in metal prices. Asia-Pacific holds the largest market share in the scrap market, accounting for over one-third of the total market. The region's dominance is primarily driven by the expanding infrastructure, industrialization and urbanization that promotes construction activities in the region.

Market Dynamics

Increasing focus on circular economy

In recent years, the concept of a circular economy has gained significant traction worldwide as a sustainable solution to environmental and economic challenges. By promoting the principles of recycling, reusing, and reducing waste, the circular economy aims to minimize resource consumption and maximize the value of materials throughout their lifecycle.

The circular economy framework encourages businesses and individuals to adopt sustainable practices, leading to a fundamental change in the way resources are managed and waste is perceived. The respective shift in focus has had a profound impact on various industries, particularly the scrap market.

Further, governments and organizations globally are increasingly recognizing the importance of reducing waste, conserving resources, and minimizing environmental impact. The circular economy emphasizes the reuse and recycling of materials to create a closed-loop system. According to the Ellen MacArthur Foundation, the circular economy could generate a benefit of US$ 2.6 trillion annually by 2030. The respective drive towards circularity has boosted the demand for scraps as valuable input materials for various industries.

Growing Environmental Awareness and Advancements in Recycling Technologies

Rising environmental concerns and the need for sustainable practices have propelled the demand for scraps. Governments have implemented regulations and policies to promote recycling and reduce waste generation. For instance, the European Union's Waste Framework Directive sets recycling targets for member states, aiming for 55% recycling of municipal waste by 2025.

Governments also incentivize businesses and consumers to adopt sustainable practices, such as recycling and using recycled materials. The respective push towards sustainability has created a demand for scraps as feedstock for recycled products. Moreover, the technological advancements in recycling processes have played a crucial role in driving the global scraps market. Innovations in sorting, separation, and purification technologies have made it more feasible to recover valuable materials from scraps.

Advanced recycling techniques, such as pyrolysis and chemical recycling, have expanded the range of recyclable materials and improved the quality of recycled products. According to the International Solid Waste Association (ISWA), global waste-to-energy capacity reached 367 million tons per year in 2020, reflecting an increase in the adoption of advanced waste management technologies.

Regulatory Barriers and Lack of Infrastructure and Technological Advancements

One of the primary restraints affecting the global scrap market is the presence of complex and inconsistent regulations. Such regulations vary across countries and regions, creating barriers to the smooth movement of scrap materials across borders. Export and import restrictions, licensing requirements, and environmental regulations often pose challenges for scrap traders, limiting market opportunities and increasing operational costs.

According to the World Trade Organization (WTO), as of 2021, approximately 40% of global trade in scrap materials was subject to some form of import restrictions or regulatory measures. Another significant restraint faced by the global scrap market is the inadequate infrastructure for the collection, sorting, and processing of scrap materials. Insufficient recycling facilities and outdated technologies hamper the industry's ability to efficiently handle the growing volume of scrap generated globally.

Data from the International Resource Panel (IRP) indicates that as of 2020, only 39% of global scrap generated was effectively recycled, primarily due to limited infrastructure and technological advancements. Such barriers adversely affect the efficiency and profitability of the scrap market, leading to reduced trade volumes and limited access to global markets.

COVID-19 Impact Analysis

The COVID-19 pandemic has had far-reaching consequences across various sectors of the global economy. COVID-19 caused widespread disruptions in global supply chains, affecting the availability and distribution of scrap materials. Data from various countries reveals a significant decline in scrap collection, processing, and trading activities due to lockdowns, travel restrictions, and reduced industrial operations. For example, according to official reports, the scrap collection rate dropped by an average of 20% globally in 2020 compared to the previous year.

Further, the pandemic led to a sharp decline in industrial production, resulting in decreased demand for scrap materials. The closure of manufacturing facilities and the subsequent slowdown in construction activities negatively impacted the demand for metal scrap, plastics, and other recyclable materials.

Sources report a decline of approximately 25% in the global demand for scrap metal in 2020, leading to a surplus in inventories and price volatility. Moving forward, concerted efforts from governments, businesses, and stakeholders are needed to support the recovery and sustainability of the global scrap market in a post-pandemic world.

Segment Analysis

The global automotive oem coatings market is segmented based on metal, type, source, end-user and region.

The Increasing Adoption of Sustainable Practices and The Concept of a Circular Economy

The increasing adoption of sustainable practices and the concept of a circular economy have contributed to the growth of the non-ferrous segment, particularly aluminum scraps. Industries are recognizing the value of recycling and reusing materials to reduce waste and conserve resources. Aluminum scraps play a vital role in the circular economy by providing a source of secondary raw material for the production of new aluminum products. The World Economic Forum estimates that the circular economy for aluminum could generate US$ 40 billion annually by 2030.

Moreover, government initiatives and regulations play a significant role in driving the growth of the non-ferrous segment, specifically aluminum scraps. Governments globally are implementing policies to promote recycling and reduce the environmental impact of metal production. For instance, the European Union's Circular Economy Action Plan sets a target of 50% aluminum recycling by 2030. The aforementioned growth in emphasis on sustainability and the circular economy drives the demand for aluminum scraps in the global scrap market.

Geographical Analysis

Rapid Industrialization and Urbanization, Leading to Increased Consumption and Generation of Scrap Materials

The scrap market plays a vital role in the global economy, providing a sustainable source of raw materials for various industries. Asia-Pacific has undergone rapid industrialization and urbanization, leading to increased consumption and generation of scrap materials. As economies in the region continue to grow, there is a rising demand for raw materials to support construction, manufacturing, and infrastructure development. According to data from the Asian Development Bank (ADB), Asia's share of global GDP reached 46.5% in 2020, reflecting the region's economic significance.

Moreover, infrastructure development projects, such as roads, bridges, and buildings, require substantial quantities of raw materials, including scrap metals. Asia-Pacific has witnessed a surge in infrastructure investments, driven by government initiatives to enhance connectivity and stimulate economic growth. Asia-Pacific has emerged as a significant player in the global scrap market, experiencing remarkable growth in recent years. The respective growth has contributed to the expansion of the scrap market in Asia-Pacific.

Competitive Landscape

The major global players in the market include ArcelorMittal, Nucor Corporation, Commercial Metals Company, Sims Metal Management Limited, Aurubis AG, Stena Metall AB, Tetronics Limited, Waste Management, Inc., Enviro-Hub Holdings Limited and BOLIDEN AB.

Why Purchase the Report?

• To visualize the global scrap market segmentation based on metal, type, source, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of scrap market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global scrap market report would provide approximately 69 tables, 69 figures and 190 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies