According to a recent report by analysts, Fact.MR, the global market for steel scrap, is predicted to rise from 655 million tonnes to 1,050 million tonnes by 2033. The projected period is expected to see an expansion in the market due to increased efforts by steel manufacturers to reduce carbon emissions.
This growth will be driven by emerging economies such as China, India, and Brazil, which are experiencing a surge in demand for raw materials used in steel production. Steel has maintained its position as a preferred material over competitors due to the development of lightweight products and high-strength steels.
The recycling of scrap metal has also been boosted by favourable policies enacted by governments worldwide in response to concerns about the depletion of natural resources. Fact.MR predicts that the global steel scrap market will grow at a compound annual growth rate (CAGR) of 4.9%, with China’s market expanding at a rate of 5.7% and the ‘obsolete segment’ at a rate of 5.3% annually.
The report highlights ArcelorMittal, one of the world’s leading steel producers, and their collaboration with the automobile sector to explore the potential value of deconstructing vehicles before they are shredded for scrap. They are also working on various recycling projects with the World Steel Association.
The report also mentions the acquisition of the Belgian-Spanish Metallo Group by Aurubis in May 2019, which enabled them to pursue their multi-metal and recycling strategy and improve their portfolio in vital metals such as copper, nickel, tin, zinc, and lead.