The Recycled Metal Market consists of a wide range of metal products including ferrous and non-ferrous metals that can be recycled or reused. Steel, aluminum, copper, lead and other metals find myriad applications across automotive, construction, packaging, machinery manufacturing and other industries. Being durable and infinitely recyclable, metals can be reprocessed and remanufactured according to demand. This aids in natural resource preservation and reduces energy usage involved in primary metal production.
The growing focus on sustainable development and waste management has augmented the supply of scrap metal. Government initiatives to promote the circular economy along with voluntary recycling efforts from the public are helping boost recycled metal recovery rates worldwide. The metal recycling industry plays a vital role in conserving natural resources and mitigating greenhouse gas emissions. It is estimated that recycling aluminum, copper, steel and other metals reduces energy usage by over 90% compared to primary metal production.
The global Recycled Metal Market is estimated to be valued at US$ 70 billion in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2025, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving the recycled metal industry is the increasing use of recycled content in new metal products. Various regulations like the European Union’s directive on packaging and packaging waste stipulate mandatory recycled material norms for plastic, metal, glass and paper packaging. Such policies are encouraging metal producers to boost the incorporation of scrap in their operations. For instance, Coca Cola uses aluminum scrap equivalent to around 67% of the quantity consumed in their beverage cans annually. As the push for sustainability rises across jurisdictions, the adoption of recycled metal will continue growing.
Porter’s Analysis
Threat of new entrants: Low capital requirements and limited need for differentiation create low barriers to entry. However, established players hold a dominant market share diminishing opportunities for new players.
Bargaining power of buyers: Large buyers such as automobile and construction industries possess significant negotiating power due to the fragmentation of suppliers and commoditized nature of recycled metal.
Bargaining power of suppliers: The presence of a large number of scrap metal suppliers ensures competitive prices for recycled metal. However, fluctuating supply of scrap metal gives suppliers some pricing power.
Threat of new substitutes: Alternatives to recycled metal include virgin materials. However, strict environmental regulations favoring recycling limit potential substitution.
Competitive rivalry: Intense competition exists among recycled metal producers on pricing.
Key Takeaways
The Global Recycled Metal Market Size is expected to witness high growth over the forecast period driven by rising environmental awareness.
Regional analysis: North America dominates the recycled metal market currently owing to stringent environmental regulations and an established recycling ecosystem in the region. Asia Pacific is expected to grow at the fastest pace during the forecast period with increasing infrastructure development and industrialization.
Key players operating in the recycled metal market are Sims Metal Management, European Metal Recycling, Schnitzer Steel Industries, Commercial Metals Company, and Tomra Sorting Solutions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
