Australia’s metal scrap market gathers pace

Australia’s metal recycling market continues to expand and was valued at EUR 4.8 billion in 2025.

Strong demand from construction, infrastructure and manufacturing will boost the scrap market to EUR 6.7 billion by 2034, according to analysts at IMARC – an annualised growth rate of 3.78%.

The analysts argue that tighter environmental regulation is pushing circular economy practices higher up corporate agendas. In addition, manufacturers are actively seeking cost-effective recycled feedstock at a time when energy and raw material prices remain volatile.

Dominant segments

By material, steel remains the backbone of Australia’s metal recycling market. In 2025, its share accounted for 48% of the total market. This dominance reflects steel’s infinite recyclability, well-established collection systems and consistent demand from construction and manufacturing.

Looking at end-use sectors, construction leads the market with a 36% share in 2025. Large-scale infrastructure programmes, public investment in transport networks and steady residential development all play a role. Consequently, demand for recycled reinforcement bars, beams and structural steel continues to rise.

Meanwhile, government policy remains supportive. Australia aims to achieve an 80% resource recovery rate by 2030, supported by funding, regulation and national waste strategies. This policy certainty continues to encourage private investment across the recycling value chain.

Closed-loop models gain traction

Industry players are increasingly turning to closed-loop recycling to secure supply and to cut emissions. In November 2024, Capral successfully trialled aluminium billet containing 20% recycled content, supplied by Rio Tinto at Boyne Smelters. The trial used up to 100 tonnes of post-production aluminium scrap from Capral’s Bremer Park extrusion facility in southeast Queensland.

The project demonstrated the commercial viability of locally sourced recycled aluminium within Australia’s integrated manufacturing system.

Similarly, in July 2025, Sims signed a non-binding memorandum of understanding with Equest Steel, which trades as Alter Steel. The agreement supports Alter Steel’s planned electric arc furnace in Pinkenba, Queensland, scheduled for 2028.

Under the proposal, Sims would supply up to 550 000 tonnes of ferrous scrap per year and manage scrap flows on a just-in-time basis. Both companies aim to convert domestic scrap into premium steel, lowering emissions and keeping manufacturing onshore.

Technology sharpens recovery

Technology continues to reshape the sector. Across Australia, recyclers are deploying artificial intelligence, machine learning and automated sorting systems to improve recovery rates and material purity.

According to IMARC, Australia’s AI market reached around EUR 1.9 billion in 2024, highlighting the scale of digital investment feeding into industrial applications, including recycling.

Together, these trends point to a market moving beyond volume alone. Instead, Australia’s metal recycling sector is increasingly defined by quality, efficiency and supply chain resilience.

Read more about the report here >>