Recycled Metal is Estimated to Witness High Growth Owing to Rising Environmental Concerns

Author : naufan cmi | Published On : 23 Jan 2024

Recycled metal refers to metal scraps, waste and residues reused after manufacturing and end of life products. It includes ferrous metals such as iron and steel and non-ferrous metals such as aluminum and copper. Recycled metals are used across industries like automotive, construction, electrical and electronics, shipbuilding industry among others.

The global recycled metal market is estimated to be valued at US$ 90 billion in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
One of the major driver driving the growth of the recycled metal market is rising environmental concerns. With growing awareness about carbon emission and its impact on climate change, there is an increasing focus on reuse and recycling of materials to reduce waste generation and promote circular economy. Metals have inherent properties of being recyclable without any loss in quality or performance. Recycling metal products helps in conserving natural resources and energy required for mining and extraction of virgin metals. It is estimated that recycling aluminum saves over 95% of the energy used to produce new aluminum from bauxite ore. Moreover, recycling one metric ton of steel saves approximately 1.1 metric tons of iron ore, 630 kg of coal, and 55 lbs of limestone. In addition, recycling metals reduces greenhouse gas emissions and air pollution associated with metal production from primary raw materials. Thus focus on sustainability and implementation of stringent environmental regulations globally are fueling the demand for recycled metals.

SWOT Analysis
Strength: Recycled metal provides opportunities to reuse metal waste in an environmentally friendly way. It reduces dependency on mining for fresh metal and conserves natural resources. The process of recycling metal requires less energy as compared to extracting and processing raw materials. It helps lower manufacturing costs for industries using metal as raw material.

Weakness: The quality and purity of recycled metal tends to degrade with each recycling cycle. It is difficult to retrieve specific/targeted types and grades of recycled metal. Dependence on waste collection methods can impact the availability of recycled raw material. There are additional expenses involved in collection, sorting and processing of scrap metal.

Opportunity: Stringent regulations around waste management and sustainability are promoting greater reuse of resources. Demand is increasing from industries aiming to reduce carbon footprint. Developing technologies in metal detection, sorting and processing can boost recycling rates. Emerging economies experiencing infrastructure growth and industrialization can absorb higher recycled metal supply.

Threats: Volatile metal prices can impact supply availability and demand for recycled options. Dependence on waste streams exposes recycling industry to external economic cycles. Presence of non-ferrous contaminants poses challenges. Substitution threat from other materials in certain applications.

Key Takeaways
The Global Recycled Metal Market Size is expected to witness stable growth over the forecast period supported by rising focus on sustainability across industries.

Regional analysis- Asia Pacific region holds the largest share in the global recycled metal market led by countries such as China. China alone contributes over 50% of the global recycled metal supply due to large population, rapid urbanization and industrialization. Other major Asian markets include Japan, South Korea and India. The region is forecast to maintain its dominance driven by growing metal fabrication industry and implementation of new environmental norms.

Key players- Key players operating in the recycled metal market include European Metal Recycling, Commercial Metals Company, Norton Aluminum, Kuusakoski Recycling, Sims Metal Management, OmniSource Corporation. They process all kinds of ferrous, non-ferrous and precious metals through large recycling facilities. Major players are focusing on capacity expansion and investments in innovative sorting technologies to maximize recycling yields.

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