The Global Market for Steel Scrap is Projected to Reach 793 Million Metric Tons by 2020

Increasing Use of Recycled Steel Spurs Growth in the Global STEEL SCRAP Market, According to a New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global report on Steel Scrap. The global market for Steel Scrap is projected to reach 793 million metric tons by 2020, driven by the growing demand for steel and increasing shift towards of Electric Arc Furnaces (EAF) in the manufacture of steel.

Demand for scrap metal is driven by steel, automotive and construction industries. With the growing number of steel mills using electric arc furnace (EAF) method of production, demand for steel scrap is expected to remain strong, as the process employs the use of scrap metal instead of coal to produce steel. Electric arc furnaces are a cost effective alternative to blast furnaces, as they significantly cut down costs associated with transportation of raw materials. Also driving growth is the importance being placed by emerging economies such as India and China on increasing recycled metal scrap consumption to reduce the carbon footprint. Global warming is one of the most important issues currently faced by the global steel industry. Recycling of scrap significantly reduces CO2 emissions resulting in rising use of recycled steel in the manufacturing of goods, thus driving demand for steel scrap.

Increase in automobile production is also expected to spur demand for steel and recycled steel scrap used in automobiles. Also, the rapid increase in the number of end-of life vehicles (ELV) in countries such as China is expected to help expand scrap volumes. Since scrap metal is traded globally, economic conditions tend to significantly influence demand patterns and pricing trends. Steel scrap imports to the Middle East registered relatively steady growth in recent years, led by an expanding steel production base in countries such as Saudi Arab, Kuwait and Qatar.  Further, the imposed ban on nickel ores exports from Indonesia to China in 2014 is expected to drive the demand for steel scrap in the country, as it turns to scrap usage in steel production.

As stated by the new market research report on Steel Scrap, Asia-Pacific represents the largest and the fastest growing market worldwide. The growth in the region is led by the healthy pace of urbanization and industrialization in develeoping countries and accelerating shift towards EAF method for steel production.

Major players covered in the report include ArcelorMittal S.A., Baosteel Resources Co., Ltd., Commercial Metals Company, Gerdau Ameristeel Corporation, , Maanshan Iron & Steel Company Limited, Metalico Inc., Nucor Corporation, Oryx Stainless Group, Schnitzer Steel Industries Inc., Sims Metal Management Limited, and Steel Dynamics Inc., among others.

The research report titled "Steel Scrap : A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive analysis of the global steel scrap  market including key market trends, recent product launches, strategic corporate initiatives of key market participants. The report also provides market estimates and projections in million tons across all major geographic markets including the United States, Canada, Europe (France, Germany, Italy, UK, Spain, Russia, Turkey and Rest of Europe), Asia-Pacific (China, India and Rest of Asia-Pacific), Middle-East and Latin-America (Brazil and Rest of Latin-America).