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).



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