The Global Market for Steel Scrap is Projected to Reach 755 Million Metric Tons by 2024
Growing Emphasis on Use of
Recycled Steel to Drive Growth in the Global Steel Scrap Market, According to a
New Report by Global Industry Analysts, Inc.
GIA
launches comprehensive analysis of industry segments, trends, growth drivers,
market size, share and demand forecasts on the global Steel Scrap market. The global market for Steel Scrap
is projected to reach 755 million metric tons by 2024, driven by the increasing shift
towards Electric Arc Furnaces (EAF) method in the manufacture of steel and
higher use of scrap in blast oxygen furnaces (BOFs).
Steel
scrap forms one of the most important raw materials required for the
manufacture of steel, apart from iron ore and metallurgical coal. Scrap is
defined as discarded, waste material that is rejected during the process of
manufacturing steel or comes from end of life products, such as parts of
vehicles and building supplies. The use of steel scrap in steel manufacture is
largely attributed to its ability to be repeatedly used as a secondary raw
material without loss of quality. As majority of scrap steel is used in the
production of new steel, trends and developments in the steel industry
significantly influence the demand scenario in the steel scrap industry. Also,
since scrap metal is tradable globally, economic conditions tend to
significantly influence demand patterns and pricing trends. Demand for scrap
metal is primarily driven by steel, automotive and construction industries.
With growing number of steel mills using electric arc furnace (EAF)
method,
demand for steel scrap is expected to remain significant as the process employs
the use of scrap metal instead of coal to make steel. The industry is also
expected to gain with steel companies focused on reducing the cost structure of
their steelmaking operations.
Based
on the production process applied in each sector, and the availability of
domestic scrap, usage of scrap in the manufacturing of steel differs
significantly throughout the world. Increase in automotive sales is also
expected to spur the demand for steel and recycled steel scrap used in
automobiles. Recent years witnessed increasing investments in scrap metal
extraction equipment for extracting and recycling high levels of metal.
Optimizing metal extraction capability from scrap has a positive impact on the
availability of scrap. The industry is also witnessing the growth in digitization across the supply
chain to enable flexible material flow and improve the efficiency of inventory
management and storage.
As
stated by the new market research report on Steel Scrap, Asia-Pacific represents
the largest and the fastest growing market worldwide at a CAGr of 5.5% over the
analysis period. Growth in the region is led by rapid economic growth in
countries such as India, improvement in construction and industrial sectors and
rise in shift towards EAF method for steel production driven by enforcement of
tighter environmental regulations to reduce emissions from steel manufacturing.
Major
players in the market 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).
Global Industry Analysts, Inc. 6150 Hellyer Ave., San Jose CA 95138, USA,
All Rights Reserved.
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