Recycled metals are generated from scrap metals recovered from various sources and processed further. Almost every metal is recyclable. Metals are one of the most easily recycled materials; they retain their value effectively, with most varieties being able to be recycled again with little change in their fundamental qualities.
The recycled metal market is segmented by metal type, end user, and scrap type. Based on metal type, the market is bifurcated into ferrous metals such as mild steel, cast iron, and medium carbon steel, and non-ferrous metals such as aluminum, copper, tin, nickel, cobalt, gold, silver, mercury, and others. Based on end user, the market is subdivided into building and construction, packaging automotive, electronics and electrical equipment, industrial machinery, and shipbuilding. Based on scrap metal, the market is categorized into old scrap and new scrap.
Industry Demand and Key Drivers
According to OMR Research, the global recycled metal market is projected to grow at a CAGR of 3.5% during the forecast period (2023-2029). Metals are utilized in a variety of industries, including building and construction, packaging, automotive, industrial machinery, and shipbuilding, which is the primary factor driving this growth. Increased urbanization and industrialization result in rapid economic growth, which further enhances demand for the global recycled metal market. Additionally, with a rising focus on the conservation of natural resources as well as the reduction of greenhouse gas emissions, market participants and governments are prompted towards the use of recycled metals, which further supports the market’s growth. For instance, one ton of recycled steel saves 80% of the carbon dioxide emissions created during steel production, and CO2 emissions can be decreased by 92% when using aluminum scrap instead of raw aluminum. According to the Material Recycling Association of India, steel is the most recycled material in the world. In just one year between 2017 and 2018, the consumption of steel scrap increased by 10%. Steel is the most significant engineering and building material in the world, and it can be recycled indefinitely with no loss of property.
Metal recycling also allows enterprises to get raw materials for the production of final items without compromising the qualities of the raw materials themselves. This provides firms with a competitive advantage in the market. Material recycling can be performed at a lesser cost than primary metal production. Another factor that supports market growth is the increasing population that uses electronics such as mobile phones and other devices. Since metals are not renewable, recycling is the only option left for all industry players. Due to such factors, the recycled metal market is growing.
Recent Developments
The key market players are contributing to the growth of the market through various development activities such as mergers and acquisitions, expansions, investments, and collaborations. These market players include ArcelorMittal, Doosan Enerbility, Nucor Corporation, Commercial Metals Company, SIMS Metal Management Limited, Aurubis AG, European Metal Recycling Limited, Tata Steel, Dowa Holdings Co., Ltd., OmniSource Corporation, Schnitzer Steel Industries, Inc., and others. A few recent activities in the market include-
• In January 2023, to increase Carnival recycling initiatives, the City of New Orleans announced its collaboration with Grounds Krewe, New Orleans & Company, the Can Manufacturers Institute, ArcGNO, and other organizations. The name of the program is Recycle Dat. According to the program, all aluminum beverage containers collected along the Uptown parade route will be transported to EMR Metal Recycling, which will charge the market rate for the containers and then donate the proceeds to three local charities: the Coalition to Restore Coastal Louisiana, the Louisiana SPCA, and the New Orleans Area Habitat for Humanity.
• In January 2023, Elcyon, Nucor’s latest heavy gauge, sustainable steel plate product, was unveiled. It was created specifically to satisfy the rising demand from American offshore wind energy producers who are constructing the green economy's essential infrastructure. Elcyon will be made by Nucor at its brand-new, cutting-edge Nucor Brandenburg steel factory. Elcyon is a modern, sustainable steel product produced by Nucor, utilizing an electric arc furnace that uses recycled waste as raw material.
• In January 2023, Panasonic unveiled the “Take Back for Tomorrow” program at the 2023 Consumer Electronics Show (CES) in Las Vegas to encourage the recycling of some consumer electronics. Electronic personal care products such as shavers and trimmers will be the focus of the pilot program's initial efforts to recycle parts that might otherwise wind up in landfills.
• In January 2023, Emirates Global Aluminium announced the formation of the Aluminium Recycling Coalition, which intends to revolutionize aluminum recycling in the UAE. The coalition was inaugurated at EGA in Al Taweelah.
• In January 2023, at its refinery complex north of Toronto, Electra Battery Materials Corporation built a demonstration operation to recover and recycle high-value materials present in lithium-ion batteries, such as nickel, cobalt, lithium, copper, and graphite.