Global Metal Recycling Market - 2023-2030

Market Overview

Global Metal Recycling Market reached US$ 54.5 billion in 2022 and is expected to reach US$ 92.2 billion by 2030, growing with a CAGR of 6.8% during the forecast period 2023-2030.

Government initiatives will be a key factor in driving the growth of the global metal recycling market over the coming years. Governments are implementing various incentives to promote metal recycling. Landfill and dumping restrictions, tax credits and subsidies for industries utilizing recycled metal are some of the policies likely to improve the adoption of metal recycling practices.

Developing regions such as Africa are increasingly looking to develop a local metal recycling industry. In March 2023, a conference was held in Dubai, UAE to brainstorm new strategies for the implementation of policies to help develop local scrap metal processing industry in Africa. One of the key participants was the Recycling Association of Africa (RAA), a newly established not-for-profit organization created to promote recycling and reusing of end-of-life materials in the region.

Market Dynamics

Increasing Adoption of Closed-Loop Supply Chain Models

The global metals market is extremely volatile, with geopolitical developments, demand supply dynamics and trade regulations having an outsized impact on metal prices. It therefore presents a challenge to high volume, low margin industries that are heavily reliant on metals, such as the automotive and electronic industries. Even a short-term spike in metal prices can considerably erode the profit margins of these industries.

Therefore, to indemnify themselves against metal price volatility, many industries are gradually adopting closed loop supply chain models. A closed-loop supply chain prioritizes the recovery and recycling of scrap metal within the same supply chain. Industries can maximize utilization of metals and reduce their reliance on freshly processed metals, thus reducing their exposure to price fluctuations. The implementation of closed-loop supply chains creates a significant incentive to increase metal recycling.

Technological Advancements in Metal Recycling

New technological advances have significantly improved the efficiency and reduced costs of metal recycling operations. One notable advancement of recent years has been the growing adoption of mobile scrap processing units. The mobile units can be brought directly to the site of scrap metal, leading to quicker and efficient processing and reducing transportation costs. It is particularly useful for remote areas where recycling facilities aren't readily available.

Furthermore, advancements in smelting furnaces has enabled precision temperature control maximum metal recovery post-processing. The increased usage of magnetic and eddy current separators allows for quick and efficient sorting of ferrous and non-ferrous metals without the usage of manual labor. Technological advancements will lead to enhanced resource efficiency, reduce the environmental impact of recycling operations and enable higher recycling rates.

International Trade Barriers

The global trade of scrap metal has turned into a hot button political issue in recent years, with developed countries being accused of dumping their waste on developing countries, leading to widespread environmental contamination. Many developing countries have begun putting up barriers to restrict or outright stop the importation of scrap metals.

In April 2022, India issued a directive restricting the import of various types of scrap metals, with importation requiring government licensing. As more and more developing countries set up trade barriers to protect their domestic industries and the local environment, it creates a knock on effect on the global metal recycling market. Since most recycling facilities are located in developing countries, trade barriers lead to piling up of scrap metal and reduction in the output of recycled metal. It consequently creates pricing pressure on global metal commodities.

COVID-19 Impact Analysis

The COVID-19 pandemic led to a sharp decrease in global commodity prices on account of significantly reduced demand. With the exception of precious metals, low prices triggered a crisis within the metal recycling industry, with several small recyclers having to close operations due to the pandemic. Major recyclers have to radically alter their pricing models and undertake cost cutting measures to stay afloat.

Governments are undertaking various support measures to boost economic growth in the post-pandemic period. It has proven advantageous for the metal recycling industry has governments have focused a large portion of their support measures on sustainable industries. The post-pandemic period is likely to witness a strong rebound of the global metal recycling industry.

Russia- Ukraine War Impact Analysis

The Russia-Ukraine war led to volatility in global commodity markets as Russia, a leading exporter of metals like aluminum, iron and steel and platinum was sanctioned by U.S. and European Union (EU) for the war. The rising prices of some metals presents a major opportunity for recyclers to ramp up production.

Europe was plunged into an energy crisis as Russia shut off gas supplies in retaliation for the sanctions. With soaring energy costs, the metal recycling industry in Europe started to lose its competitiveness. It created opportunities for recyclers in Asia-Pacific to capture a larger share of the global market at the expense of European recyclers.

Segment Analysis

The global metal recycling market is segmented based on metal, scrap, mode of recycling, end-user and region.

Efficient Processing Makes Shredding a Preferred Mode of Recycling

Shredding mode of recycling accounts for nearly a third of the global market. Shredding is effective in removing metals from other materials such as rubber frames or insulation. Modern shredders have powerful blades which can cut through materials of any thickness. Shredding also helps to break down large sized scrap metal into smaller pieces for better processing.

Shredding is mainly used to facilitate downstream processing steps, such as the separation of ferrous and non-ferrous metals through magnetic or eddy current separation. Shredded metal fragments are easier to handle and enable more efficient sorting. Shredding thus enhances the overall efficiency of the metal recycling process.

Geographical Analysis

Increased Usage of Automation and Battery Metal Recycling Will Propel Market Growth in North America

North America accounts for a third of the global market. North America is a highly developed and industrialized region with a consumerist society which generates significant scrap metal waste every year. However, metal recycling companies in North America have been facing declining revenues in recent years, as rising costs have made it more economical to ship scrap metal to Asia-Pacific for recycling.

Therefore, North American metal recyclers are increasingly relying upon automation to improve recycling efficiency and lower scrap metal processing costs. One of the major avenues of future growth for the North American market has been battery metal recycling. With increased EV production, companies are investing in facilities for recovery and recycling of lithium, cobalt, nickel and other battery metals. For instance, in June 2023, Ascend Elements, a U.S. company specializing in battery materials, opened a new battery metal recycling plant in Covington, Georgia, U.S.

Competitive Landscape

The major global players include: Gerdau S/A, Nucor, Commercial Metals Company, Steel Dynamics, Schnitzer Steel Industries, Inc., River Metals Recycling, ArcelorMittal, Aurubis AG, Dowa Holdings Co. Ltd and Novelis Inc.

Why Purchase the Report?

• To visualize the global metal recycling market segmentation based on metal, scrap, mode of recycling, 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 metal recycling 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 metal recycling market report would provide approximately 64 tables, 72 figures and 210 Pages.

Target Audience 2023

• Metal Processing Companies
• End-User Industries
• Commodity Traders
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies