Ferrous Scrap Recycling

Global Ferrous Scrap Recycling Market to Reach US$176.2 Million by 2030

The global market for Ferrous Scrap Recycling estimated at US$150.0 Million in the year 2024, is expected to reach US$176.2 Million by 2030, growing at a CAGR of 2.7% over the analysis period 2024-2030. Construction Sector, one of the segments analyzed in the report, is expected to record a 3.6% CAGR and reach US$84.1 Million by the end of the analysis period. Growth in the Automotive Sector segment is estimated at 1.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$40.9 Million While China is Forecast to Grow at 5.4% CAGR

The Ferrous Scrap Recycling market in the U.S. is estimated at US$40.9 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$34.5 Million by the year 2030 trailing a CAGR of 5.4% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.0% and 2.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.5% CAGR.

Global Ferrous Scrap Recycling Market – Key Trends & Drivers Summarized

Why Is Ferrous Scrap Recycling Gaining Strategic Importance in the Global Circular Economy?

Ferrous scrap recycling has emerged as a cornerstone of the circular economy, offering a sustainable and economically viable solution to meet rising global steel demand while reducing environmental impact. As steel remains one of the most widely used materials in construction, automotive, manufacturing, and infrastructure, the ability to recycle iron and steel scrap is essential for conserving natural resources and reducing the need for primary raw materials like iron ore and coking coal. Recycled ferrous scrap requires significantly less energy to process—nearly 60–70% less than virgin steelmaking—leading to dramatic reductions in greenhouse gas emissions and water consumption. Amid rising regulatory pressures to decarbonize heavy industries and meet carbon neutrality targets, scrap-based Electric Arc Furnace (EAF) steelmaking is being adopted more widely, especially in developed economies. Additionally, scrap recycling reduces the burden on landfills and helps mitigate the environmental degradation associated with mining activities. With urbanization and industrialization generating growing volumes of obsolete machinery, vehicles, and infrastructure, ferrous scrap has become a valuable, renewable resource integral to the global transition toward green manufacturing.

How Are Technological Advances and Infrastructure Upgrades Transforming Scrap Processing?

Modernization in scrap collection, sorting, and processing technologies is reshaping the ferrous scrap recycling landscape, making it more efficient, automated, and quality-driven. Traditional manual sorting methods are being replaced by sophisticated equipment such as magnetic separators, shredders, optical sorters, and X-ray fluorescence systems, which improve recovery rates and minimize contamination. Automated scrap yards now employ artificial intelligence and machine learning algorithms to identify and classify ferrous materials in real time, streamlining operations and enhancing purity levels. Innovations in pre-treatment techniques, such as preheating scrap before melting, are reducing energy requirements and improving furnace efficiency. The integration of Internet of Things (IoT) devices in scrap logistics is enhancing traceability, allowing recyclers to optimize supply chains and meet stricter material certification demands from downstream steelmakers. Countries with advanced recycling infrastructure, such as the U.S., Germany, and Japan, are investing in next-generation processing plants that can handle mixed metal streams at high throughput levels. These advancements not only increase the economic viability of recycling but also ensure that recycled steel can meet the stringent mechanical and chemical standards required by critical industries.

What Market Trends and Policy Shifts Are Driving Regional Demand and Supply Realignments?

Global demand for ferrous scrap is being reshaped by a confluence of policy reforms, trade regulations, and regional production dynamics. Several countries are instituting policies to prioritize domestic scrap utilization as a strategic resource for green steel production. For example, China, after previously limiting scrap imports, is now expanding its use of scrap to support its ambitious carbon neutrality goals, while also developing domestic recycling systems. Similarly, India’s Steel Scrap Recycling Policy aims to formalize the scrap market and reduce dependence on imported raw materials. Meanwhile, export restrictions on ferrous scrap by major suppliers like Russia, Ukraine, and parts of the EU are creating supply shortages in traditional importing nations, leading to price volatility and intensified competition for high-quality scrap. Simultaneously, the growing use of EAFs in Southeast Asia, the Middle East, and Latin America is boosting local and cross-border demand for processed scrap. The rise in auto recycling, industrial dismantling, and construction demolition is also contributing to growing scrap generation in urbanized regions. Governments are further incentivizing recycling through tax benefits, subsidies, and extended producer responsibility (EPR) frameworks, reshaping market behavior and supply chain structures worldwide.

What Key Drivers Are Fueling the Global Growth of the Ferrous Scrap Recycling Market?

The growth in the Ferrous Scrap Recycling market is driven by several factors rooted in industrial transformation, sustainability mandates, and resource optimization strategies. Foremost is the global steel industry’s pivot toward Electric Arc Furnace (EAF) technology, which relies heavily on ferrous scrap and is less carbon-intensive than traditional blast furnace methods. Heightened environmental regulations and net-zero emissions targets are pushing manufacturers to adopt scrap-intensive production methods as part of their decarbonization pathways. At the same time, increasing volumes of end-of-life vehicles, consumer goods, appliances, and decommissioned infrastructure are expanding scrap availability, supported by improved collection systems and recycling networks. The growing cost and scarcity of primary raw materials are also making scrap a more attractive and cost-efficient alternative. Additionally, the emergence of green building standards and sustainable manufacturing certifications is driving demand for recycled-content steel products. Public and private investments in recycling infrastructure, automation, and smart logistics are improving operational efficiencies and scaling up regional scrap ecosystems. Finally, circular economy policies and industry commitments to closed-loop systems are positioning ferrous scrap recycling as a critical enabler of resource resilience and industrial sustainability in the 21st century.

SCOPE OF STUDY:

The report analyzes the Ferrous Scrap Recycling market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Sector (Construction Sector, Automotive Sector, Consumer Goods Sector, Industrial Goods Sector)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 32 Featured) -

• Alter Trading Corporation
• American Iron & Metal (AIM)
• Andec
• ArcelorMittal
• Aurubis AG
• Commercial Metals Company (CMC)
• DK Recycling und Roheisen GmbH
• European Metal Recycling (EMR)
• Ferrous Processing & Trading Company
• Glencore plc
• Hugo Neu Corporation
• Metal Management Inc.
• Metalico Inc.
• Nucor Corporation
• OmniSource Corporation
• SA Recycling
• Schnitzer Steel Industries
• Scrap Metal Services, LLC
• Sims Metal Management
• Tube City IMS

TARIFF IMPACT FACTOR

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APRIL 2025: NEGOTIATION PHASE

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