USD 323.8 Billion
Report ID:
SQMIG15J2107 |
Region:
Global |
Published Date: May, 2025
Pages:
185
|Tables:
100
|Figures:
76
Global Scrap Metal Recycling market size was valued at USD 323.8 Billion in 2023 and is poised to grow from USD 335.78 Billion in 2024 to USD 449.04 Billion by 2032, growing at a CAGR of 3.7% in the forecast period (2025-2032).
The global scrap metal recycling industry is undergoing a transformative shift driven by increasing environmental concerns, stringent government regulations on mining and waste disposal, and growing demand for sustainable raw materials across key end-user industries. The World Steel Association shows that in 2023 more than 30% of the total steel production equivalent to about 630 million tons of recycled steel was utilized worldwide. Not only does this decrease the reliance on virgin ore, but it also empirically eliminates carbon emissions as it takes 75% less energy to recycle steel than to create new steel from raw materials.
This market is mainly driven by government regulations and policy interventions. The regulatory context has also been favorable to develop this circular pathway; for instance, the European Union has established in its Circular Economy Action Plan of 2020 that the member states should improve recycling processes and limit landfilling. In the same way, China’s “dual-carbon” goal of achieving carbon peak by 2030 and carbon neutrality by 2060 has reinvigorated the domestic scrap recycling market. In 2022, China’s Ministry of Industry and Information Technology issued guidelines to upgrade the quality and scale of scrap steel application, with an end goal to reach 300 million tons by 2025.
On the demand side automotive and construction industries remain the leading consumers of the metals. The International Aluminium Institute claims that over 75% of aluminium ever produced is still in use today, due to effective recycling. Companies such as Ford (2023 Annual Report) also highlighted the incorporating recycled aluminium and steel in pursuit of sustainability and lower production costs of vehicles.
Despite the upward trajectory of growth, industry faces a key restraint in the form of fragmented and informal scrap collecting systems, particularly in developing countries. Collection is not well segregated at source, there is no standardized technologies for processing, and prevalence of the informal sector also makes it difficult to ensure quality control and traceability.
How Are Technological Innovations Transforming Scrap Metal Recycling?
Technological innovations have dramatically changed the way scrap metal is recycled in terms of efficiency, accuracy and scale. The recycling process of the past had issues including inaccurate sorting, contamination and low material recovery. But today’s sensor sorting, robotics, artificial intelligence for materials recognition and high-tech shredders, allow for a high-grade metal recovery with little to no human separation involved. This decreases labor costs, increases safety and overall makes recycling more economically viable and therefore a more feasible option than pulling raw metals out. This confidence helps industries such as automotive, electronics, and building to confidently accept recycled metals.
Companies like Tomra and STEINERT have developed near-infrared (NIR) and X-ray transmission (XRT) systems capable of separating mixed scrap into high-purity streams, including alloys and non-ferrous fractions. The Bureau of International Recycling (BIR) notes that over 70% of aluminum in circulation today has been recycled at least once, thanks in part to better processing systems.
How Is Construction and Infrastructure Growth Fueling Scrap Metal Recycling?
One of the underlying forces behind the scrap metal recycling industry is the increasing need for metals for global infrastructure and construction. These countries’ rapid urbanization and modernization patterns require steel, aluminum and copper in order to build bridges, roads, buildings and public utilities, and this is happening both in developed and developing nations. Because of this, recycled scrap metal is now considered a more economically viable and sustainable resource as there is less and less raw metal ore available and more and more energy required for the primary production of metals. It is also resource efficient, lessens the impact on the environment, and relates to trends in “greener” building processes.
According to the World Steel Association, over 50% of global steel demand comes from the construction sector. The Global Infrastructure Hub estimates that USD 94 trillion will be needed for global infrastructure by 2040. With 68% of the population expected to live in urban areas by 2050, recycled metals will play a crucial role. In the U.S., 43% of recycled scrap comes from construction waste, reflecting this growing synergy.
Market snapshot - 2025-2032
Global Market Size
USD 323.8 Billion
Largest Segment
Ferrous Metals
Fastest Growth
Ferrous Metals
Growth Rate
3.7% CAGR
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Global Scrap Metal Recycling Market is segmented by Metal Type, Scrap Source, End-use Industry and region. Based on Metal Type, the market is segmented into Ferrous Metals and Non-Ferrous Metals. Based on Scrap Source, the market is segmented into Industrial Scrap, Post-consumer Scrap, Construction & Demolition Scrap and Others. Based on End-use Industry, the market is segmented into Automotive, Aerospace & Defense, Construction, Electrical & Electronics, Manufacturing & Industrial Sectors, Consumer Appliances and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
In the global scrap metal recycling market, Ferrous Metals dominate the Metal Type segment, accounting for a major share of the industry. Ferrous metals, primarily consisting of iron and steel, are extensively recycled due to their widespread application across industries such as automotive, construction, and manufacturing. According to the World Steel Association’s 2024 report, recycled ferrous scrap accounted for over 40% of global steel production, emphasizing the metal's pivotal role in promoting circular economy models.
Companies like ArcelorMittal and Tata Steel have intensified their use of ferrous scrap to lower carbon emissions; Tata Steel, for instance, announced in 2023 its target to increase scrap utilization by over 25% in its European operations by 2025. Furthermore, government initiatives such as the U.S. Infrastructure Investment and Jobs Act (2021) are driving demand for recycled steel in public works projects, thereby fueling growth in ferrous recycling. Given the cost-effectiveness, lower energy consumption (about 75% less than producing steel from virgin ore, according to the U.S. Environmental Protection Agency), and environmental advantages, ferrous metals continue to secure a dominant position within the scrap recycling ecosystem globally.
Within the Scrap Source segmentation, Industrial Scrap holds the largest share of the global scrap metal recycling market. Industrial scrap originates primarily from manufacturing processes, machinery fabrication, shipbuilding, and heavy industries, making it a consistent and high-volume source of recyclable metal. According to the Bureau of International Recycling (BIR) 2023 statistics, industrial scrap contributed nearly 45% of all scrap metal collected globally.
Major corporations are proactively integrating recycling into their operations — for instance, in 2024, Nucor Corporation reported sourcing over 20 million tons of scrap metal, with a substantial portion originating from industrial partners and internal processes, as per their latest Sustainability Report. Similarly, in 2023, Sims Limited, a global leader in recycling, expanded its industrial scrap partnerships across North America and Europe, aiming to capitalize on the rising volume from renewable energy and automotive sectors. Industrial scrap is often preferred by recyclers because it is typically cleaner, more uniform, and requires less processing compared to post-consumer scrap.
Moreover, regulatory pressures, like the European Green Deal's push for circular economy practices, are compelling industries to ensure efficient recycling, further reinforcing the dominance of industrial scrap in the market.
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Asia Pacific leads the global scrap metal recycling market, contributing over 55% of the global volume in 2024 (source: World Steel Association). Rapid urbanization, rising manufacturing output, and government mandates for sustainable development have driven the region's dominance. China, Japan, and South Korea are major players due to robust industrial activity and high metal consumption rates. Policies like China’s "14th Five-Year Plan for Circular Economy" (2021–2025) are actively promoting metal recycling. Additionally, technological advancements and partnerships between recycling companies and automotive/electronic manufacturers further boost market expansion across the region.
China remains the largest scrap metal recycler globally, processing around 230 million metric tons of scrap metal in 2023 (Ministry of Ecology and Environment of China). Recent developments include Baowu Steel Group's launch of its smart scrap recycling center in Jiangsu Province (2024), aimed at fully automating scrap sorting and processing. The government’s 2024 revision of the "Resource Recycling Industry Development Plan" sets targets to increase the use of recycled metals in industrial production by 20% by 2025. Additionally, China's import relaxation for high-quality recycled steel in 2023 has revived international scrap trade flows.
Japan’s scrap metal recycling sector is highly mature, recycling approximately 84 million tons of scrap metal in 2023 (source: Japan Iron and Steel Federation). In a notable move, Tokyo Steel Manufacturing Co. announced in 2024 the expansion of its Kyushu plant to handle increased ferrous scrap recycling for electric arc furnace (EAF) production. Japan’s "Green Growth Strategy" (2023 update) promotes scrap metal recycling as a core component for achieving its 2050 carbon neutrality goals. Furthermore, recycling rates in the automotive and electronics sectors continue to rise, strengthening demand for high-grade recycled metals.
South Korea’s scrap metal recycling industry processed approximately 32 million tons in 2023 (Korea Iron and Steel Association). A major development is POSCO’s announcement in March 2024 to construct a new USD 1.2 billion eco-friendly steel mill focusing heavily on scrap-based production. South Korea's "Resource Circulation Policy Framework Act" emphasizes maximizing resource reuse, with ambitious targets set for 2030. The growing EV manufacturing sector also boosts demand for recycled metals, particularly aluminum and copper, with companies like Hyundai Recycling Center expanding operations in Busan (2023).
North America is the fastest-growing scrap metal recycling market, projected to witness a CAGR of ~8.2% during 2024–2028 (U.S. Department of Commerce). Government incentives for sustainable industries, infrastructure revitalization programs like the U.S. Infrastructure Investment and Jobs Act (2021), and increased demand for recycled metals from automotive and construction sectors are primary growth drivers. Technological innovations such as AI-based sorting and increased steel mill investments in scrap-fed electric arc furnaces support market momentum across the region.
The U.S. remains North America's largest scrap metal recycler, processing over 120 million tons annually (Institute of Scrap Recycling Industries - ISRI, 2023). In 2024, Nucor Corporation invested USD 860 million to expand its recycling capabilities by building a new scrap processing facility in the Midwest, reflecting strong domestic demand. The 2023 Inflation Reduction Act also provides tax credits for recycling businesses. Additionally, U.S. steelmakers are increasing their reliance on recycled scrap to reduce carbon emissions, aligning with ESG (Environmental, Social, and Governance) goals.
Canada’s scrap metal recycling industry handled approximately 16 million tons in 2023 (Canadian Association of Recycling Industries - CARI). A major development is Triple M Metal LP’s 2024 expansion into Western Canada with a new advanced metals recovery facility in Alberta. Canada's "Zero Plastic Waste" initiative indirectly boosts overall recycling infrastructure investment, including metals. Further, the automotive and construction industries' push towards greener practices is increasing the demand for recycled aluminum and steel. Provincial recycling mandates, especially in Ontario and British Columbia, also drive steady market growth.
Europe is emerging as a significant force in scrap metal recycling, largely driven by EU Green Deal goals and strict circular economy directives. The region recycled over 120 million tons of ferrous and non-ferrous scrap in 2023 (source: European Recycling Industries’ Confederation - EuRIC). Legislative frameworks like the "Waste Shipment Regulation" amendment (2023) are reshaping how scrap is processed and exported. Automotive decarbonization, electronics recycling, and infrastructure modernization efforts are creating new opportunities for scrap metal recyclers across the UK, Germany, and France.
The UK recycled approximately 10 million tons of scrap metal in 2023 (source: British Metals Recycling Association - BMRA). A significant development is EMR Group’s 2024 investment of £150 million into AI-driven sorting technologies at its Liverpool facility to improve non-ferrous recovery rates. The UK’s "Resources and Waste Strategy" (updated 2023) emphasizes boosting recycling rates to 65% by 2035. Brexit has also encouraged domestic recycling over exports, pushing companies to invest heavily in upgrading facilities to meet both environmental and economic goals.
Germany leads Europe in metal recycling volumes, processing over 30 million tons annually (source: German Environment Agency - UBA, 2023). In February 2024, Aurubis AG, Europe's largest copper recycler, announced a €300 million investment in its Hamburg plant to expand scrap recycling capacity. The German government's "Circular Economy Act" (Kreislaufwirtschaftsgesetz) continues to promote industrial recycling. With the automotive sector's pivot toward EVs and lightweight metals, demand for high-grade recycled aluminum and copper has surged, further energizing the scrap metal industry.
France processed about 15 million tons of scrap metal in 2023 (Fédération des Entreprises du Recyclage - FEDEREC). Recent highlights include Derichebourg Environnement’s 2024 merger with Ecore, creating France’s largest scrap recycling group with enhanced capacity for ferrous and non-ferrous metals. The French government's "Anti-Waste for a Circular Economy Law" (AGEC) is pushing industries to increase their recycled content usage, setting targets of 30% recycled metals in new products by 2025. Increased demand from the construction and automotive sectors is expected to drive strong growth in the coming years.
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Rising Steel Production and Demand for Secondary Raw Materials
Government Regulations and Sustainability Mandates
Volatility in Scrap Metal Prices Impacting Profit Margins
Inadequate Recycling Infrastructure in Emerging Economies
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The global scrap metal recycling market is characterized by strategic expansions, technological advancements, and consolidation among key players. Sims Limited, processing approximately 75% of its volumes in the U.S., reported an underlying profit of USD 35.1 million for the half-year ending December 31, 2024, up from USD 7 million the previous year, despite challenging market conditions. The company is restructuring by divesting non-core assets, including its British recycling business, to focus on more profitable regions. In December 2024, Glencore entered a multi-year agreement with Cyclic Materials to source over 10,000 metric tons of recycled copper annually, enhancing its supply chain amid rising demand for copper in electric vehicles and renewable energy sectors. Aurubis AG is investing €990 million in 2024 to expand its recycling capabilities, including a new facility in Georgia, USA, aiming to process 90,000 metric tons of scrap annually, with plans to double capacity. In India, MSTC Limited, a government-owned entity, reported a net profit of ₹241.96 crore for the fiscal year ending March 31, 2023, up from ₹199.10 crore the previous year, reflecting its growing role in the domestic recycling sector. These strategic moves underscore the industry's focus on enhancing operational efficiency and securing supply chains to meet the increasing demand for recycled metals.
Emerging Trends Shaping the Future of Scrap Metal Recycling
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global scrap metal recycling market is undergoing rapid transformation, driven by the urgent need for sustainable raw materials, stricter environmental regulations, and the growing emphasis on circular economy practices. With ferrous metals dominating and industrial scrap emerging as a key source, the market is increasingly aligning with global sustainability goals. Asia Pacific continues to lead the industry, fueled by robust industrialization and supportive government policies. However, challenges such as volatile scrap prices and inadequate infrastructure in emerging economies highlight the need for technological upgrades and policy interventions. Despite these hurdles, strong momentum from construction, automotive, and manufacturing sectors, coupled with innovations in sorting and processing technologies, is positioning scrap metal recycling as a critical pillar of the global green economy. Going forward, strategic investments and collaborations will be crucial in unlocking the full potential of this dynamic and evolving market.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 323.8 Billion |
Market size value in 2032 | USD 449.04 Billion |
Growth Rate | 3.7% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Scrap Metal Recycling Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Scrap Metal Recycling Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Global Scrap Metal Recycling market size was valued at USD 323.8 Billion in 2023 and is poised to grow from USD 335.78 Billion in 2024 to USD 449.04 Billion by 2032, growing at a CAGR of 3.7% in the forecast period (2025-2032).
The global scrap metal recycling market is characterized by strategic expansions, technological advancements, and consolidation among key players. Sims Limited, processing approximately 75% of its volumes in the U.S., reported an underlying profit of USD 35.1 million for the half-year ending December 31, 2024, up from USD 7 million the previous year, despite challenging market conditions. The company is restructuring by divesting non-core assets, including its British recycling business, to focus on more profitable regions. In December 2024, Glencore entered a multi-year agreement with Cyclic Materials to source over 10,000 metric tons of recycled copper annually, enhancing its supply chain amid rising demand for copper in electric vehicles and renewable energy sectors. Aurubis AG is investing €990 million in 2024 to expand its recycling capabilities, including a new facility in Georgia, USA, aiming to process 90,000 metric tons of scrap annually, with plans to double capacity. In India, MSTC Limited, a government-owned entity, reported a net profit of ₹241.96 crore for the fiscal year ending March 31, 2023, up from ₹199.10 crore the previous year, reflecting its growing role in the domestic recycling sector. These strategic moves underscore the industry's focus on enhancing operational efficiency and securing supply chains to meet the increasing demand for recycled metals. 'AIM Recycling', 'ArcelorMittal', 'Aurubis AG', 'CMR Green Technologies Ltd', 'COHEN', 'Greenwave Technology Solutions, Inc.', 'OmniSource, LLC', 'Sims Limited', 'SL Recycling', 'The David J. Joseph Company (Nucor Corporation)', 'TKC Metal Recycling Inc.', 'Kuusakoski Group Oy', 'Metallon Recycling Pte Ltd', 'SA Recycling LLC', 'Commercial Metals Company', 'Dowa Holdings Co., Ltd.', 'Tata Steel', 'Radius Recycling, Inc.', 'European Metal Recycling Ltd.', 'Upstate Shredding – Weitsman Recycling'
Global steel production hit 1.89 billion metric tons in 2023 (World Steel Association), driving the demand for cost-effective and sustainable secondary raw materials like scrap metal. As scrap accounts for over 40% of global steelmaking inputs, recycling is increasingly prioritized. For example, in 2023, ArcelorMittal invested USD 300 million in its NA recycling operations to scale up scrap processing, reflecting industry's strategic shift towards circular steel production to reduce emissions and costs.
Growing Use of AI and Automation in Recycling Facilities: Major industry players are adopting AI and sensor-based sorting technologies to enhance metal purity and processing speed. In 2023, Schnitzer Steel Industries deployed AI-powered robotic sorters across its U.S. facilities, increasing throughput efficiency by 20% and reducing contamination rates.
How is Asia Pacific keeping its Dominance in Global Scrap Metal Recycling?
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