Scrap Metal Recycling Market

Scrap Metal Recycling Market Analysis by Ferrous Scrap and Aluminum Scrap for Automotive, Industrial, and Electricals from 2023 to 2033

Analysis of Scrap Metal Recycling Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Scrap Metal Recycling Market Growth Outlook (2023 to 2033)

Based on the analysis by Fact.MR, the global scrap metal recycling market is estimated to be valued at US$ 70.5 billion in 2023 and it is expected to grow at a CAGR of 5.5% to reach US$ 120.3 billion by the end of 2033.

The scrap metal recycling market is witnessing a steady upward trend due to various factors such as increasing awareness about environmental sustainability, government regulations, and rising demand from various end-use industries. The market is expected to experience significant growth in the coming years as the demand for recycled metal continues to increase.

Report Attributes


Scrap Metal Recycling Market Size (2022A)

US$ 66.8 Billion

Estimated Market Value (2023E)

US$ 70.5 Billion

Forecasted Market Value (2033F)

US$ 120.3 Billion

Global Market Growth Rate (2023-2033)

5.5% CAGR

East Asia Market Share (2023)


U.S. Market Growth Rate (2023-2033)

5.3% CAGR

Key Companies Profiled

  • American Iron & Metal (AIM)
  • ArcelorMittal
  • DBW Metals Recycling
  • Kuusakoski
  • Metallon Recycling Pte Ltd.
  • OmniSource, LLC
  • TKC Metal Recycling Inc.

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Historic and Future Pathway Analysis for the Scrap Metal Recycling Market

One of the key drivers of the market is the growing awareness of environmental sustainability among consumers and businesses. Recycling scrap metal reduces the need for mining and extracting the new metal, thereby conserving natural resources and reducing environmental impact.

The current economic downturn has been a positive factor for the scrap metal recycling industry. This is because the downturn has led to a decrease in the demand for new metal while increasing the demand for recycled metal. As recycled metal is more cost-effective than newly mined metal, which makes it more appealing to buyers during times of economic hardship. Hence, the current economic downturn has led to an increase in the amount of scrap metal available for recycling.

  • Short Term (2023-2026): The rising demand for recycled metal from various end-use industries such as automotive, construction, and electronics, is likely to drive the market during the projection period.
  • Medium Term (2026-2029): Emerging economies have immense growth opportunities for the scrap metal recycling market during the forecast period due to supportive government initiatives.
  • Long Term (2029-2033): Technological advancements in scrap metal recycling processes are likely to drive the market in the long run as the use of advanced sorting technologies and improved metal recovery processes are improving the quality of recycled metal, reducing production costs, and increasing the competitiveness of the market.

On the back of the aforementioned facts, the scrap metal recycling market is estimated to grow at a CAGR of 5.5% during the forecast period from 2023-2033, According to the Fact.MR, a market research and competitive intelligence provider.

Market Dynamics Outlook

“Favorable Government Initiatives to Drive the Scrap Metal Recycling Market”

Government initiatives across the globe aimed at promoting and supporting scrap metal recycling, and have a significant impact on the overall market. For instance,

  • The European Union's Circular Economy Package aims to increase the recycling and reuse of materials, including scrap metal, by setting ambitious targets and promoting sustainable production and consumption practices.
  • The United States Environmental Protection Agency's Scrap Metal Recycling Initiative aims to reduce the environmental impact of metal recycling and promote the reuse of scrap metal by providing technical assistance and training to recyclers.
  • The Chinese government's National Sword policy has restricted the import of scrap metal and other waste materials and promoted domestic recycling and processing of these materials.
  • The Indian Government’s National Steel Policy aims to increase domestic steel production and reduce the country's dependence on imported scrap metal by promoting scrap metal recycling and the use of electric arc furnaces.

Overall, government initiatives for scrap metal recycling play a crucial role in promoting sustainable production and consumption practices, reducing waste and environmental impact, and driving growth in the global scrap metal recycling market.

“Pullulating Demand across End-use Verticals to Bolster Scrap Metal Demand”

The increasing adoption of scrap metal by end-use industries such as automotive, construction, and manufacturing is driving the growth of the scrap metal recycling market globally. As scrap metal is cost-effective, environmentally friendly, and possesses similar quality as virgin metal. Due to the aforementioned factors the end-use industries are using recycled metal over virgin metal. For instance:

  • Tata Steel: The company uses scrap metal as a raw material for its electric arc furnaces, which produce steel products for the construction, automotive, and manufacturing industries.
  • ArcelorMittal: The world's prominent steel producer uses scrap metal in its production process, and has committed to increasing its use of recycled material to 50% by 2030.
  • Novelis: The company uses recycled aluminum as a raw material for its production of rolled aluminum products for the automotive, construction, and packaging industries.
  • BMW: The German automaker has committed to increasing the use of recycled and secondary raw materials, including scrap metal, in its production process.

Hence, growing demand for scrap metal from numerous end-use industries is likely to drive the scrap metal recycling market during the projection period across the globe.

“Counterfeit Scrap Metal a Pain Point to the Global Market”

One of the prominent factors restraining the scrap metal recycling market is the increasing number of counterfeit scraps. Counterfeit scrap metal refers to non-metallic material that is mixed with metal, such as plastics, wood, or rubber, making it difficult to separate and recycle.

It also poses numerous risks and challenges as some non-metallic materials, such as plastics, can release toxic fumes when exposed to high temperatures during the recycling process, posing a risk to workers. Further, separating non-metallic materials from scrap metal is a time-consuming and costly process, reducing the efficiency of the recycling process. The presence of non-metallic materials can lower the quality of the recycled metal, making it less desirable to end-use industries.

In order to encounter this issue, numerous countries have implemented regulations to prevent the entry of counterfeit scrap metal into the recycling supply chain. For instance, the European Union has implemented regulations that require exporters of scrap metal to provide documentation verifying the authenticity of the material.

Hence, the presence of counterfeit scrap metal is a significant challenge for the scrap metal recycling market, but with the implementation of regulations and advancements in technology, the industry is working to address this issue and continue to grow in a sustainable and efficient manner.

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Country-wise Insights

What are the Factors Driving Scrap Metal Recycling Demand Across China?

The Chinese government has been actively promoting the recycling of scrap metal through various policies and initiatives. The Ministry of Industry and Information Technology of China has implemented a series of policies to encourage the recycling of scrap metal, including subsidies for scrap metal recycling enterprises and favorable tax policies.

China's role as the world's largest producer and consumer of metals also makes it a lucrative market for the scrap metal recycling industry. China has a large domestic market for recycled metal, and its manufacturing industry is a major consumer of recycled metal. Additionally, China's central location in Asia makes it an ideal location for exporting recycled metal to other countries in the region.

Why Germany’s Scrap Metal Recycling Market is Flourishing?

Germany has one of the highest recycling rates in the world, and its scrap metal recycling market is flourishing due to a combination of government policies, public awareness, and technological advancements.

  • For instance, the German government continues to invest in recycling and circular economy initiatives, with a focus on reducing waste and greenhouse gas emissions. In 2021, the government launched a 5-billion-euro investment program to support the transition to a circular economy, which includes funding for research and development of new recycling technologies.

Thus, the measures adopted by the government and the service providers are likely to boost the market growth of the German scrap metal recycling market during the forecast period.

Category-wise Insights

Why Aluminum Recycling is Gaining Traction?

Aluminum recycling is gaining traction compared to other metals as it is environmentally friendly as it saves a lot of energy and reduces carbon emissions. Recycling aluminum requires 95% less energy than producing new aluminum from raw materials, which helps to reduce greenhouse gas emissions. Further, aluminum recycling is cost-effective as it requires less energy, which reduces the cost of production. Additionally, the demand for aluminum is increasing due to its use in various industries such as construction, transportation, and packaging. Recycling aluminum helps to meet this demand without depleting natural resources.

Also, numerous countries have implemented laws and regulations to encourage recycling and reduce waste. Governments are also promoting the use of recycled materials in industries to reduce environmental impact and create a circular economy. Hence, the increasing awareness of the benefits of aluminum recycling, coupled with economic and environmental considerations, has led to a significant increase in aluminum recycling in recent years.

How the Growing Automotive Industry Drives the Scrap Metal Recycling Market?

The growing automotive industry has a significant impact on the scrap metal recycling market. The production of new vehicles requires a large number of raw materials, including metals such as steel, aluminum, and copper. Recycling scrap metals helps to reduce the demand for virgin raw materials and conserve natural resources.

Recycling scrap metal is cost-effective as it requires less energy than producing new metals from raw materials. This makes it a more economical option for the automotive industry. Hence, the use of recycled metal for the production of vehicles is mounting which drives the scrap metal recycling market.

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Competitive landscape highlights only certain players
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Eminent Player’s Key StratagemsScrap Metal Recycling Market

Prominent market players such as American Iron & Metal (AIM), ArcelorMittal, DBW Metals Recycling, Kuusakoski, Metallon Recycling Pte Ltd., and OmniSource, LLC are adopting various groundbreaking growth strategies to gain high-profit margins and curb the demand pool. For instance:

  • In April 2021, GDE Group invested 27.3 million euros in a new metal recycling plant in the south of France. The plant will have a capacity of 250,000 tons per year and is expected to create around 70 jobs.
  • In March 2021, the US-based scrap metal recycling company, Schnitzer Steel Industries, announced that it had completed the installation of a new shredder at its Oakland, California facility. The shredder has a capacity of 4,000 tons per month and is expected to improve the company's processing capabilities and efficiency.
  • In February 2021, EMR announced plans to build a new metal recycling facility in the port of Hull. The facility, which is expected to be operational in 2025, will have a capacity of 750,000 tons per year and will create around 70 new jobs.

Fact.MR has provided detailed information about the price points of key manufacturers of scrap metal recycling positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Scrap Metal Recycling Industry Research

  • By Metal Type :

    • Ferrous
      • Stainless Steel
      • Carbon Steel
      • Mild Steel
      • Cast Iron
      • Others
    • Non-Ferrous
      • Aluminum
      • Copper
      • Lead
      • Nickel
      • Zinc
      • Brass
      • Tin
      • Gold
      • Others
  • By Scrap Type :

    • New
    • Old
  • By Industry :

    • Building & Construction
    • Automotive
    • Industrial Manufacturing
    • Electricals
    • Shipbuilding
    • Consumer Electronics
    • Others
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • Middle East & Africa

- FAQs -

What was the Global Scrap Metal Recycling Market Size Reported by Fact.MR for 2022?

The global scrap metal recycling market was valued at US$ 66.8 billion in 2022.

What are the Regions considered in the Global Scrap Metal Recycling Market?

Regions considered in the global scrap metal recycling market are North America, Latin America, Europe, East Asia, South Asia & Oceania, Middle East & Africa.

What is the Estimated Growth Rate for the Scrap Metal Recycling Market?

The estimated growth rate of the global scrap metal recycling market is 5.5% during the forecast period.

Which are the Prominent Regions in the Scrap Metal Recycling Market?

North America followed by East Asia are prominent regions creating immense growth opportunities for the market titans.

Who are the Predominating Players in the Scrap Metal Recycling Market?

Prominent market players such as American Iron & Metal (AIM), ArcelorMittal, DBW Metals Recycling, Kuusakoski, Metallon Recycling Pte Ltd., and OmniSource, LLC.

Scrap Metal Recycling Market

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