South Africa Metal Recycling Market Overview,2030

South Africa’s metal recycling sector is evolving rapidly as the country strengthens its circular economy policies and environmental regulations. Key firms such as SA Metal Group, Universal Recycling, Cronimet RSA, Sasolburg Scrap Metal, Lead Metal Recycling, and NN Metals dominate collection, sorting, and processing of both ferrous such as iron, steel and non ferrous metals such as aluminum, copper, stainless steel, brass, zinc etc. Magnetic separation is used extensively to extract ferrous metals, while eddy current separators and optical/XRF based sorting are increasingly applied for non ferrous scrap and mixed alloys. Shears, shredders, and granulators break down large structural scrap and cables; melting and refining occur locally to produce steel and high grade non ferrous outputs for foundries, mills, and downstream manufacturers. Innovations are emerging like sensor based tracking of scrap supply chains, more advanced alloy identification for stainless steel from companies such as Cronimet, and automated/robotic dismantling in e waste processing. Regulatory oversight has also tightened, licensing, environmental clearances, and auditing are enforced through national environmental legislation like NEMWA, local authorities, and through industry associations such as the Metal Recyclers Association (MRA). Major hubs for collection and processing are Gauteng (Johannesburg, Pretoria), Western Cape (Cape Town), and KwaZulu Natal (Durban region). Port facilities in Durban, Cape Town and Richards Bay are important for export of non ferrous scrap, especially where domestic demand is insufficient or when processing capacities are exceeded.

According to the research report ""South Africa Metal Recycling Market Overview, 2030,"" published by Bonafide Research, the South Africa Metal Recycling market is anticipated to grow at more than 7.18% CAGR from 2025 to 2030. South Africa is seeing growing momentum in metal recycling as government policy, corporate investment, and informal sector participation converge to boost non ferrous and ferrous scrap processing capacities. Major companies such as SA Metal Group are scaling up demolition, heavy scrap collection, sorting and processing operations, supplying foundries and downstream steel mills. The Metal Recyclers Association, representing roughly eighty per cent of scrap metal recycled by volume, is formalizing standards, ethical conduct, and regulatory compliance across its members. Meanwhile, firms are increasingly embedding Environmental, Social, and Governance (ESG) practices, such as better pollution control, reporting, energy efficient furnaces and cleaner inputs. On the policy side, extended producer responsibility schemes have been introduced for metal packaging via MetPac SA, which has exceeded its recovery targets and is pushing for enhanced waste picker integration, infrastructure investment, governance reform, and improved data tracking of aluminum and ferrous scrap flows. Sibanye Stillwater’s acquisition of Metallix refining in the United States, for eighty two million US dollars reflects its urban mining strategy to secure precious metals feedstock and leverage recycling know how in global operations. Incentives for local recyclers include subsidies, tax or regulatory support, and efforts to integrate informal waste collectors into formal supply chains, helping reduce transport and process losses. Port and logistics bottlenecks remain a challenge, but improvements are being pursued to facilitate scrap export where necessary, and more importantly to support local reuse and value addition so that more metal volume is processed domestically rather than exported raw.

The ferrous metals segment is dominant in volume, driven by large flows of structural steel scrap, old demolitions, used machinery, rails, and automotive bodies. Leading recyclers such as SA Metal Group handle large quantities of ferrous scrap, converting it into billets, rebar or feedstock for steel mills. Ferrous recycling benefits from relatively lower processing complexity and established demand from steel producers in South Africa and the broader Southern African region. That said challenges include contamination, logistics of bulky low value material, and competition with virgin iron ores and imported scrap. The non ferrous metals segment is more specialized and value intensive. Players like Universal Recycling Company are focused entirely or heavily on non ferrous scrap, using shredders, eddy current separators, XRF / optical sorting, and refining processes to recover high purity alloys for downstream smelters or export. Because non ferrous metals have higher per unit value, the economics favor more rigorous sorting, alloy identification, and tighter quality control. Scaling non ferrous recycling in South Africa faces constraints such as limited domestic smelting/refining capacity, import/export imbalances, high energy costs, regulatory approvals, and securing consistent feedstock. Some non ferrous scrap is exported for refinement abroad, which reduces local beneficiation. The industry is increasingly exploring advanced sorting technologies and integrated local refining capacity to capture more value domestically and reduce dependence on external processors.

Building & Construction is one of the major consumers of recycled ferrous metals in South Africa. Rebar, structural steel sections, mesh, and reinforcing bars produced from recycled scrap are integrated into residential, commercial, and infrastructure projects. Because construction demand is relatively stable, recyclers supplying construction steel benefit from consistent, local demand for lower‐grade ferrous recyclate. SA Metal, for instance, produces reusable steel and rebars from recycled feedstock. In non ferrous space, aluminium frames, doors, roofing sheets, and architectural elements may use recycled aluminium, though adoption is more modest due to cost premiums and alloy purity demands. Automotive & Transportation drives demand for both ferrous and non ferrous recycled metals. End of life vehicles (ELVs) provide a stream of scrap steel, as well as copper, aluminium, and lead. The automotive recycling loop is still fragmented in South Africa, often driven by informal dismantlers and scrap yards. Recyclers that can integrate ELV dismantling, sorting, and material recovery capture more value, but must comply with environmental and regulatory standards. Industrial Machinery & Equipment offers a steady source of scrap, often from factory shutdowns, plant upgrades, or machinery replacement. Such scrap tends to be higher grade, sometimes alloyed steel, stainless steel, or copper, and thus commands premium recovery rates. Recyclers with capabilities in demolition, heavy cutting, shearing, and advanced sorting are positioned to capture value from this stream, especially in mining, manufacturing, and energy sectors. Consumer Goods & Electronics is a growing frontier for non ferrous recycling, especially for copper, gold, silver traces, aluminium casings, printed circuit boards, and small motors. The e waste channel is still underdeveloped in South Africa, with informal collectors and limited formal processing capacity.

Obsolete scrap refers to materials that have reached end of physical life or become permanently discarded. In South Africa, this includes end of life vehicles (ELVs), household appliances, consumer electronics, old roofing sheets, demolition debris from buildings, structural steel from disused plants, and decommissioned infrastructure. Obsolete scrap is generally lower in predictability and more dispersed, often collected via informal sector scrap dealers, municipal waste streams, or demolition contractors. Its quality is more variable, and contamination is common, requiring strong sorting, cleaning, and separation capabilities. For non ferrous metals, e waste recycling is still nascent, proper collection infrastructure and incentives are needed to channel such scrap into formal recycling streams. Prompt scrap is generated during manufacturing processes, fabrication, machining, forging, casting, or other industrial operations. This includes offcuts, turnings, stamping burrs, trimming waste, defective parts, and scrap generated internally in factories. In South Africa, this scrap tends to be cleaner, more predictable in composition, and located at identifiable industrial zones. Recyclers often have contracts with steel mills, auto parts manufacturers, fabrication shops, and equipment makers to collect these prompt scraps directly. Capital Equipment & Infrastructure scrap comprises large, durable assets at the end of their life, bridges, rail tracks, large mechanical systems, turbines, industrial plant equipment, pipelines, towers, and large structural fabrications. Such scrap is high volume and often technically complex to dismantle, transport, and process. In South Africa, industries such as mining, power plants, oil & gas, and infrastructure overhaul generate this scrap. Recyclers engaging in demolition, heavy dismantling, and value recovery services often bid for large contracts.


Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Metal Recycling Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Types of metals
• Ferrous Metals
• Non-ferrous Metals

By End-Use Industry
• Building & Construction
• Automotive & Transportation
• Industrial Machinery & Equipment
• Consumer Goods & Electronics
• Packaging
• Shipbuilding & Aerospace
• Others

By Source of scraps
• Obsolete scrap
• Prompt (Industrial) Scrap
• Capital Equipment & Infrastructure
" Show more