The future’s bright for steel scrap

The global steel scrap market is expected to reach 1 050 million tonnes by 2033, up from its current 655 million tonnes, according to a new report from analysts Fact.MR.

‘Increasing efforts by steel producers to cut carbon emissions are anticipated to fuel market expansion during the projected period,’ a researcher concludes.

The report notes that future need for steel scrap is anticipated to be fuelled by an increase in the demand for raw materials used in steel manufacturing from quickly growing and emerging economies such as China, India, and Brazil. Steel has been able to meet the challenge provided by a variety of competitor materials due to the development of new lightweight goods and high-strength steels.

The demand for scrap has been enhanced by governments of various countries implementing favourable policies surrounding the metal recycling business in response to the growing worries about the rapid depletion of natural resources.

Fact.MR expects the growth of the global steel scrap market to over 1 000 million tonnes by 2033 to be at a CAGR of 4.9% with China’s market evolving at 5.7%. The ‘obsolete segment’ is anticipated to expand at an annual rate of 5.3%.

The report points out that one of the world’s leading producers, ArcelorMittal, is partnering with the automobile sector to determine how much more value can be obtained by deconstructing vehicles before they are shredded to recover scrap. They are working with the World Steel Association on several recycling projects.

In an example of the appetite for acquisition, the May 2019 purchase by Aurubis of the Belgian-Spanish Metallo Group is highlighted. The report says this enabled Aurubis to aggressively pursue its multi-metal and recycling strategy and improved the firm’s multi-metal portfolio, especially in the vital metals copper, nickel, tin, zinc, and lead.