Steel Scrap Market

Steel Scrap Market Forecast and Outlook 2025 to 2035

The global steel scrap market is valued at USD 88.0 billion in 2025 and is slated to reach USD 145.0 billion by 2035, recording an absolute increase of USD 57.0 billion over the forecast period. This translates into a total growth of 64.8%, with the market forecast to expand at a compound annual growth rate (CAGR) of 5.1% between 2025 and 2035.

The overall market size is expected to grow by approximately 1.65X during the same period, supported by increasing demand for sustainable steel production, growing adoption of circular economy practices across global steel manufacturing sectors, and rising preference for cost-effective raw materials in industrial applications.

Quick Stats for Steel Scrap Market

• Steel Scrap Market Value (2025): USD 88.0 billion
• Steel Scrap Market Forecast Value (2035): USD 145.0 billion
• Steel Scrap Market Forecast CAGR: 5.1%
• Leading Type in Steel Scrap Market: Ferrous (70.0%)
• Key Growth Regions in Steel Scrap Market: Europe, Asia Pacific, North America
• Key Players in Steel Scrap Market: Nucor, ArcelorMittal, JSW Steel, Steel Dynamics, Gerdau, Thyssenkrupp, China Baowu, POSCO

The steel scrap market represents a critical segment of the global steel production industry, characterized by resource optimization and robust demand across industrial, municipal, and construction channels. Market dynamics are influenced by evolving sustainability requirements for steel production, growing interest in recycling technologies, and expanding partnerships between scrap collectors and steel manufacturers in developed and emerging economies. Traditional iron ore-based steel production systems continue evolving as manufacturers seek proven scrap alternatives that offer enhanced cost characteristics and reliable supply benefits.

Industrial behavior in the steel scrap market reflects broader manufacturing trends toward sustainable, cost-effective systems that provide both environmental benefits and extended operational improvements. The market benefits from the growing popularity of ferrous scrap applications, which are recognized for their superior melting properties and manufacturing compatibility across steel production and industrial applications. Additionally, the versatility of steel scrap as both primary raw material and supplementary input supports demand across multiple steel applications and quality segments.

Regional adoption patterns vary significantly, with European markets showing strong preference for industrial scrap implementations, while North American markets demonstrate increasing adoption of municipal scrap applications alongside conventional industrial systems. The steel production landscape continues to evolve with sophisticated and feature-rich recycling products gaining traction in mainstream operations, reflecting manufacturer willingness to invest in proven recycling technology improvements and sustainability-oriented features.

The competitive environment features established steel companies alongside specialized scrap processing companies that focus on unique collection capabilities and advanced sorting methods. Processing efficiency and material quality optimization remain critical factors for market participants, particularly as environmental regulations and steel quality standards continue to evolve. Distribution strategies increasingly emphasize multi-channel approaches that combine traditional scrap supply chains with direct manufacturer partnerships through long-term supply agreements and integrated processing contracts.

Market consolidation trends indicate that larger steel companies are acquiring specialty scrap processors to secure their raw material portfolios and access specialized collection segments. Advanced recycling integration has gained momentum as steel companies seek to optimize their material costs while maintaining competitive production standards. The emergence of specialized scrap variants, including enhanced processing formulations and grade-specific options, reflects changing steel production priorities and creates new market opportunities for innovative recycling system developers.

Between 2025 and 2030, the steel scrap market is projected to expand from USD 88.0 billion to USD 113.4 billion, resulting in a value increase of USD 25.4 billion, which represents 44.6% of the total forecast growth for the decade. This phase of development will be shaped by increasing adoption of ferrous scrap systems, rising demand for industrial recycling solutions, and growing emphasis on sustainability features with advanced processing characteristics. Processing facilities are expanding their collection capabilities to address the growing demand for specialized scrap implementations, advanced sorting options, and application-specific offerings across steel segments.

Steel Scrap Market Key Takeaways

Metric	Value
Estimated Value (2025E)	USD 88.0 billion
Forecast Value (2035F)	USD 145.0 billion
Forecast CAGR (2025-2035)	5.1%

From 2030 to 2035, the market is forecast to grow from USD 113.4 billion to USD 145.0 billion, adding another USD 31.6 billion, which constitutes 55.4% of the overall ten-year expansion. This period is expected to be characterized by the expansion of municipal recycling applications, the integration of innovative sorting solutions, and the development of specialized scrap implementations with enhanced quality profiles and extended processing capabilities. The growing adoption of advanced recycling formulations will drive demand for steel scrap with superior material characteristics and compatibility with modern steel technologies across production operations.

Between 2020 and 2025, the steel scrap market experienced steady growth, driven by increasing demand for ferrous scrap systems and growing recognition of recycled materials as essential components for modern steel production across manufacturing and industrial applications. The market developed as steel producers recognized the potential for scrap solutions to provide both cost benefits and operational advantages while enabling streamlined production protocols. Technological advancement in recycling processes and application-based development began emphasizing the critical importance of maintaining material quality and production compatibility in diverse steel environments.

Why is the Steel Scrap Market Growing?

Market expansion is being supported by the increasing global emphasis on sustainable steel production and the corresponding need for recycling technologies that can provide superior cost benefits and environmental advantages while enabling enhanced manufacturing efficiency and extended compatibility across various steel production and industrial applications. Modern steel manufacturers and recycling specialists are increasingly focused on implementing proven scrap technologies that can deliver effective cost reduction, minimize traditional raw material dependencies, and provide consistent performance throughout complex production configurations and diverse steel grades. Steel scrap proven ability to deliver exceptional cost efficiency against traditional alternatives, enable advanced production integration, and support modern sustainability protocols makes it an essential component for contemporary steel production and manufacturing operations.

The growing emphasis on circular economy and cost optimization is driving demand for scrap that can support large-scale production requirements, improve manufacturing economics, and enable advanced recycling systems. Manufacturer preference for materials that combine effective cost reduction with proven quality and environmental enhancement benefits is creating opportunities for innovative scrap implementations. The rising influence of sustainability trends and resource efficiency awareness is also contributing to increased demand for steel scrap that can provide advanced features, seamless production integration, and reliable performance across extended production cycles.

Opportunity Pathways - Steel Scrap Market

The steel scrap market is poised for steady growth and technological advancement. As steel facilities across Europe, Asia-Pacific, North America, and emerging markets seek materials that deliver exceptional recycling characteristics, advanced processing capabilities, and reliable production options, scrap solutions are gaining prominence not just as waste materials but as strategic enablers of sustainability technologies and advanced production functionality.

Rising ferrous scrap adoption in industrial applications and expanding municipal recycling initiatives globally amplify demand, while processors are leveraging innovations in sorting engineering, advanced collection integration, and quality optimization technologies.

• Pathway A - Ferrous Scrap Implementations. Premium steel producers increasingly require scrap solutions with ferrous bases and advanced quality profiles for enhanced production appeal and cost positioning capabilities. Material developers who develop ferrous platforms with superior processing standards can command competitive pricing. Expected revenue pool: USD 61.6 billion - USD 101.5 billion.
• Pathway B - Industrial Source Platforms. Growing demand for industrial applications, high-quality capabilities, and unique collection features drives need for advanced industrial capabilities with specialized processing integration. Opportunity: USD 44.0 billion - USD 72.5 billion.
• Pathway C - Municipal Recycling Applications. Advanced municipal formulations capable of meeting specific processing requirements, collection compatibility, and specialized sorting profiles enable market expansion and enhanced recycling appeal for municipal-focused operations. Revenue lift: USD 30.8 billion - USD 50.8 billion.
• Pathway D - Non-Ferrous Material Integration. Expanding reach into non-ferrous applications with optimized recycling delivery, advanced processing capabilities, and extended functionality features. Facilities will seek partners who supply integrated non-ferrous solutions with complete scrap functionality. Pool: USD 26.4 billion - USD 43.5 billion.
• Pathway E - Geographic Expansion & Local Processing. Strong growth in APAC, particularly China, India, and Southeast Asia. Local processing lowers costs, reduces transportation complexity, and enables faster response to regional steel preferences. Expected upside: USD 30.8 billion - USD 50.8 billion.
• Pathway F - Construction Source Development. Increasing demand for construction scrap systems, application-specific functionality, and specialized collection profiles with validated quality characteristics for recycling facilities. USD 13.2 billion - USD 21.8 billion.
• Pathway G - Advanced Sorting Technology Expansion. Developing comprehensive automated sorting solutions, quality enhancement services, and processing programs creates differentiation and addresses specialized requirements for high-grade applications and facility operators. Growing demand from independent recycling services. Pool: USD 8.8 billion - USD 14.5 billion.

Segmental Analysis

The market is segmented by type, source, and region. By type, the market is divided into ferrous and non-ferrous categories. By source, it covers industrial, municipal, and construction segments. Regionally, the market is divided into North America, Europe, and Asia-Pacific.

By Type, the Ferrous Segment Accounts for 70.0% Market Share

The ferrous segment is projected to account for 70.0% of the steel scrap market in 2025, reaffirming its position as the leading type category. Steel manufacturing facilities and recycling integrators increasingly utilize ferrous implementations for their superior processing characteristics when operating across diverse application platforms, excellent melting properties, and widespread acceptance in applications ranging from basic steel production to premium specialty operations. Ferrous technology's established recycling methods and proven quality capabilities directly address the facility requirements for dependable scrap solutions in complex steel environments.

This type segment forms the foundation of modern steel production adoption patterns, as it represents the implementation with the greatest market penetration and established manufacturer acceptance across multiple steel categories and quality segments. Facility investments in ferrous standardization and processing consistency continue to strengthen adoption among steel producers and recycling companies. With manufacturers prioritizing cost efficiency and quality enhancement, ferrous implementations align with both functionality preferences and cost expectations, making them the central component of comprehensive recycling strategies.

By Source, the Industrial Segment Accounts for 50.0% Market Share

Industrial source applications are projected to represent 50.0% of steel scrap demand in 2025, underscoring their critical role as the primary source type for material collection across steel recycling operations. Processing facilities prefer industrial sources for scrap collection for their exceptional quality characteristics, scalable processing options, and ability to enhance material consistency while ensuring reliable supply throughout diverse processing platforms and recycling operations. Positioned as essential supply components for modern recycling systems, industrial source solutions offer both technological advantages and processing efficiency benefits.

The segment is supported by continuous innovation in collection technologies and the growing availability of specialized implementations that enable diverse industrial requirements with enhanced material uniformity and extended processing capabilities. Additionally, processing facilities are investing in advanced technologies to support large-scale collection integration and quality development. As steel recycling trends become more prevalent and sustainability awareness increases, industrial applications will continue to represent a major implementation market while supporting advanced steel utilization and technology integration strategies.

By Source, the Municipal Segment Accounts for 35.0% Market Share

The municipal segment is expected to capture 35.0% of the steel scrap market in 2025, driven by increasing demand for community-based recycling systems that enhance material recovery while maintaining cost effectiveness. Municipal recycling programs are increasingly adopting steel scrap collection for household waste, commercial scrap, and public infrastructure due to their accessibility and environmental benefits. The segment benefits from growing urban recycling initiatives and continuous innovation in collection formulations tailored for municipal applications.

What are the Drivers, Restraints, and Key Trends of the Steel Scrap Market?

The steel scrap market is advancing steadily due to increasing emphasis on sustainable steel production and growing adoption of recycling technologies that provide superior cost characteristics and environmental benefits while enabling enhanced manufacturing efficiency across diverse steel production and industrial applications. The market faces challenges, including complex quality variations, evolving processing standards, and the need for specialized sorting expertise and collection programs. Innovation in recycling methods and advanced processing systems continues to influence material development and market expansion patterns.

Expansion of Circular Economy Technologies and Steel Integration

The growing adoption of advanced circular economy principles, sophisticated recycling capabilities, and sustainability awareness is enabling material developers to produce advanced scrap solutions with superior cost positioning, enhanced quality profiles, and seamless integration functionalities. Advanced circular economy systems provide improved steel outcomes while allowing more efficient production workflows and reliable performance across various steel applications and processing conditions. Developers are increasingly recognizing the competitive advantages of steel integration capabilities for market differentiation and material positioning.

Integration of Advanced Sorting Methods and Processing Engineering

Modern scrap processors are incorporating advanced sorting technology, processing integration, and sophisticated collection solutions to enhance material appeal, enable intelligent quality features, and deliver value-added solutions to steel customers. These technologies improve scrap performance while enabling new market opportunities, including multi-grade sorting systems, optimized processing treatments, and enhanced quality characteristics. Advanced processing integration also allows developers to support comprehensive steel technologies and market expansion beyond traditional recycling approaches.

Analysis of the Steel Scrap Market by Key Countries

Country	CAGR (2025-2035)
USA	6.0%
Mexico	5.8%
Germany	5.5%
South Korea	5.1%
France	5.2%
UK	5.0%
Japan	4.9%

The steel scrap market is experiencing steady growth globally, with the USA leading at a 6.0% CAGR through 2035, driven by expanding steel production capacity, growing recycling programs, and significant investment in circular economy development. Mexico follows at 5.8%, supported by increasing steel manufacturing expansion, growing scrap integration patterns, and expanding industrial infrastructure.

Germany shows growth at 5.5%, emphasizing steel technology leadership and recycling development. South Korea records 5.3%, focusing on expanding steel capabilities and recycling technology modernization. France exhibits 5.2% growth, emphasizing manufacturing innovation excellence and premium recycling development. The UK demonstrates 5.0% growth, prioritizing advanced steel technology development and quality-focused recycling patterns. Japan shows 5.0% growth, supported by steel excellence initiatives and quality-focused scrap patterns.

USA Leads Global Market Growth with Steel Production Excellence

Revenue from steel scrap in the USA is projected to exhibit robust growth with a CAGR of 6.0% through 2035, driven by expanding steel production capacity and rapidly growing recycling integration supported by government initiatives promoting circular economy development. The country's strong position in steel manufacturing and increasing investment in recycling infrastructure are creating substantial demand for advanced scrap implementations. Major steel facilities and recycling companies are establishing comprehensive collection capabilities to serve both domestic steel demand and expanding manufacturing markets.

Government support for sustainability initiatives and circular economy development is driving demand for advanced scrap systems throughout major steel regions and processing centers across the country. Strong steel growth and an expanding network of recycling-focused processors are supporting the rapid adoption of steel scrap among facilities seeking advanced collection capabilities and integrated recycling technologies.

Mexico Demonstrates Strong Steel Growth and Manufacturing Expansion

Revenue from steel scrap in Mexico is growing at a CAGR of 5.8%, driven by the country's expanding steel sector, growing manufacturing capacity, and increasing adoption of recycling technologies. The country's initiatives promoting steel modernization and growing industrial development awareness are driving requirements for technology-integrated scrap systems. International scrap providers and domestic steel companies are establishing extensive processing and integration capabilities to address the growing demand for advanced recycling solutions.

Strong steel expansion and expanding modern manufacturing operations are driving adoption of integrated recycling systems with superior scrap capabilities and advanced integration among large steel producers and progressive manufacturing operations. Growing technology diversity and increasing steel enhancement adoption are supporting market expansion for advanced scrap implementations with seamless integration profiles and modern recycling delivery throughout the country's steel regions.

Germany Demonstrates Steel Technology Leadership with Innovation Growth

Revenue from steel scrap in Germany is expanding at a CAGR of 5.5%, supported by the country's steel technology heritage, strong emphasis on advanced recycling technology, and robust demand for advanced scrap systems in steel production and industrial applications. The nation's mature steel sector and technology-focused operations are driving sophisticated recycling implementations throughout the industry. Leading facilities and steel specialists are investing extensively in scrap development and advanced integration technologies to serve both domestic and international markets.

Rising demand for recycling enhancement technologies and advanced steel systems is creating requirements for sophisticated scrap solutions with exceptional processing capabilities among quality-conscious facilities seeking enhanced steel experiences and advanced integration methods. Strong steel tradition and growing investment in recycling technologies are supporting adoption of quality scrap platforms with advanced development methods and enhanced processing profiles across steel operations in major industrial regions.

France Focuses on Steel Development and Manufacturing Enhancement Programs

Revenue from steel scrap in France is growing at a CAGR of 5.2%, driven by the country's expanding steel sector, growing manufacturing development programs, and increasing investment in recycling technology development. France's large steel market and commitment to manufacturing advancement are supporting demand for diverse scrap solutions across multiple steel segments. Processors are establishing comprehensive integration capabilities to serve the growing domestic market and expanding steel opportunities.

Strong steel expansion and expanding modern manufacturing operations are driving adoption of integrated recycling systems with superior scrap capabilities and advanced integration among large steel producers

UK Exhibits Steel Technology Development and Premium Innovation Growth

Revenue from steel scrap in the UK is growing at a CAGR of 5.0%, driven by the country's focus on steel technology advancement, emphasis on premium industrial innovation, and strong position in recycling development. The UK's established steel innovation capabilities and commitment to technology diversification are supporting investment in specialized scrap technologies throughout major steel regions. Industry leaders are establishing comprehensive technology integration systems to serve domestic premium steel production and enhancement applications.

Innovations in recycling platforms and scrap integration capabilities are creating demand for advanced scrap implementations with exceptional processing properties among progressive steel facilities seeking enhanced technology differentiation and production appeal. Growing premium steel adoption and increasing focus on recycling innovation are driving adoption of advanced scrap platforms with integrated recycling delivery and steel optimization across industrial enterprises throughout the country.

Japan Shows Quality Processing Focus and Technology-Driven Steel Systems

Revenue from steel scrap in Japan is expanding at a CAGR of 5.0%, supported by the country's steel excellence initiatives, growing quality technology sector, and strategic emphasis on advanced recycling development. Japan's advanced quality control capabilities and integrated steel systems are driving demand for high-quality scrap platforms in premium applications, steel technology, and advanced recycling applications. Leading facilities are investing in specialized capabilities to serve the stringent requirements of technology-focused steel and premium manufacturing producers.

Quality steel advancement and technology-focused development are creating requirements for specialized scrap solutions with superior quality integration, exceptional processing capabilities, and advanced recycling features among quality-conscious steel operations and premium manufacturing producers. Strong position in steel technology innovation is supporting adoption of advanced scrap systems with validated processing characteristics and quality integration capabilities throughout the country's steel technology sector.

South Korea Demonstrates Strong Steel Integration and Technology Development

Revenue from steel scrap in South Korea is growing at a CAGR of 5.3%, driven by the country's expanding steel sector, growing technology integration capacity, and increasing adoption of recycling technologies. The country's initiatives promoting steel modernization and growing manufacturing development awareness are driving requirements for technology-integrated scrap systems. International scrap providers and domestic steel companies are establishing extensive processing and integration capabilities to address the growing demand for advanced recycling solutions.

Rising steel requirements and expanding manufacturing programs are creating opportunities for scrap adoption across steel centers, progressive producers, and modern manufacturing facilities in major steel regions. Growing focus on recycling integration and sustainability improvement features is driving adoption of scrap platforms among manufacturers seeking enhanced recycling capabilities and advanced processing experiences.

Europe Market Split by Countries

The steel scrap market in Europe is projected to grow from USD 30.8 billion in 2025 to USD 50.8 billion by 2035, registering a CAGR of 5.1% over the forecast period. Germany is expected to maintain its leadership position with a 35.0% market share in 2025, growing to 36.2% by 2035, supported by its strong steel excellence culture, sophisticated manufacturing capabilities, and comprehensive industrial sector serving diverse scrap applications across Europe.

France follows with a 20.0% share in 2025, projected to reach 20.5% by 2035, driven by robust demand for steel technologies in manufacturing applications, advanced industrial development programs, and recycling enhancement markets, combined with established steel infrastructure and technology integration expertise. The UK holds a 16.0% share in 2025, expected to reach 15.3% by 2035, supported by strong steel technology sector and growing premium industrial activities. Italy commands a 14.0% share in 2025, projected to reach 13.5% by 2035, while Netherlands accounts for 10.0% in 2025, expected to reach 10.5% by 2035. The Rest of Europe region is anticipated to maintain momentum, with its collective share moving from 5.0% to 4.0% by 2035, attributed to increasing steel modernization and growing technology penetration implementing advanced recycling programs.

Competitive Landscape of the Steel Scrap Market

The steel scrap market is characterized by competition among established steel companies, specialized scrap processors, and integrated recycling solution providers. Companies are investing in collection technology research, processing optimization, advanced recycling system development, and comprehensive scrap portfolios to deliver consistent, high-quality, and application-specific recycling solutions. Innovation in advanced processing integration, quality enhancement, and steel compatibility improvement is central to strengthening market position and competitive advantage.

Nucor Corporation leads the market with a 12% market share, offering comprehensive recycling solutions including quality processing platforms and advanced collection systems with a focus on premium and industrial applications. ArcelorMittal provides specialized steel capabilities with an emphasis on advanced scrap implementations and innovative recycling solutions. JSW Steel delivers comprehensive steel services with a focus on integrated platforms and large-scale recycling applications. Steel Dynamics specializes in advanced recycling technologies and specialized scrap implementations for premium applications. Gerdau focuses on industrial-oriented recycling integration and innovative technology solutions.

The competitive landscape is further strengthened by companies like Thyssenkrupp, which brings expertise in advanced steel processing, while China Baowu focuses on large-scale recycling solutions for diverse applications. POSCO emphasizes quality processing systems and steel integration, and JFE specializes in comprehensive scrap formulations. These companies continue to invest in research and development, strategic partnerships, and processing capacity expansion to maintain their market positions and capture emerging opportunities in the growing steel scrap sector.

Key Players in the Steel Scrap Market

• Nucor Corporation
• ArcelorMittal S.A.
• JSW Steel Limited
• Steel Dynamics, Inc.
• Gerdau S.A.
• thyssenkrupp AG
• China Baowu Steel Group Corporation Limited
• POSCO Holdings Inc.
• JFE Steel Corporation
• ArcelorMittal Nippon Steel India
• Ternium S.A.

Scope of the Report

Item	Value
Quantitative Units	USD 88.0 Billion
Type	Ferrous; Non-Ferrous
Source	Industrial; Municipal; Construction
Regions Covered	North America; Europe; Asia-Pacific
Countries Covered	USA; Germany; France; South Korea; UK; Japan; Mexico; and 40+ additional countries
Key Companies Profiled	Nucor; ArcelorMittal; JSW Steel; Steel Dynamics; Gerdau; Thyssenkrupp
Additional Attributes	Dollar sales by type and source category; regional demand trends; competitive landscape; technological advancements in recycling engineering; advanced processing development; sustainability innovation; steel integration protocols

Steel Scrap Market by Segments

• Type :

  • Ferrous
  • Non-Ferrous

• Source :

  • Industrial
  • Municipal
  • Construction

• Region :

  • North America
    • USA
    • Canada
    • Mexico
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Nordic
    • BENELUX
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • South Korea
    • India
    • ASEAN
    • Australia & New Zealand
    • Rest of Asia-Pacific