Ferrous scrap is a form of scrap metal that incorporates some degree of iron in it. The ferrous scrap recycling relate to the method of re-using scrap metal by taking out metals from products that are on the edge or end of the product life cycle. These are then utilized as a raw material for the production of new goods. The method pertains a lot of steps which consider the collection of scrap metal at yards, grouping of the metals and passing them through the radiation detector, shearing, shredding, separation of ferrous materials preceded by media separation, and baling. This method helps in trimming down of rare earth mining activities added with reducing greenhouse gas discharge levels, waste, preserving natural resources, and saving energy and has utilization across various industries for instance industrial machinery, packaging, and shipbuilding.
COVID-19 Impact analysis
- COVID-19 put a stop to the shipment of scrap metal, with various plants all around Europe being shut down due to restrictions. With the reduction in production, the demand for scrap metal recycling has gone down drastically. The price of various metals are still under-performing owing to nearly all UK metal smelters had been closed down. Some nations even began to impose bans on the exporting of scrap metal, such as the UAE and South Africa owing to the scarcity in scrap.
- Scrap metal recycling is anticipated to continue to grow in the future as recycling industries develop and better waste collection systems are applied, business junctures will continue to appear, paving the way for thousands more jobs.
- As some nations begin to reopen their economies, demand for particular metals are growing, for instance copper, but the supply is still distorted, which is propelling up the price. The low prices on the UK metal market, nonetheless, is causing its own problems as many traders are storing their costly metals and not handing them over for scrapping. This is due to the low prices currently being provided, with traders likely holding out until the economy begin to recover.
Top Impacting Factors
Ferrous comprises a massive share in overall scrap generation due to the consumption of steel in several end-use industries and the recovery rate from end-products, such as, in the U.S., the ferrous scrap recovery rate from automotive is 100%, closely followed by structural steel, appliances, reinforcement steel, and steel cans which is between 66% to 98% respectively. Rise of the end-use industries that are the critical consumers of the product, for instance automotive and construction, is a major boosting factor for the world-wide ferrous scrap recycling market.
Moreover, an increase in awareness programs for doing sustainable waste management and effective use of natural resources, growing environmental concerns, and increasing demand for recycling of metal leads to save energy rather than mining for new materials have also propelled the growth of this market. In addition, unexploited potential in developing economies, partnerships between the public & private sector, and metal recovery from slag residue are anticipated to pave the way for lucrative opportunities for this market.
Nevertheless, the unorganized collection of metal waste in developing countries and rigid regulations hampering free and fair trade of scrap metals are the factors obstructing the growth of this market. Adding to this, the problems faced is increasing the complexity of products which makes the recycling process problematic.
- Europe liable for one of the largest volume share of in 2019. The European steel industry has been an effective operator of steel recycling systems for over 150 years. In Europe, steel in automotive is recycled at a rate of over 90% and in packaging at over 70%. The excellent characteristic of this alloy of being recycled over and over makes steel scrap a critical raw material in raw steel production. In terms of export, Europe is one of the largest ferrous scrap exporter in the globe.
- Asia-Pacific is expected to observe significant growth, in terms of revenue, over the forecast period. Though nations such as China, Japan, Australia, and Singapore are the key shareholders in the market, there is huge potential for the recycling industry to boost in developing nations, like India. India generates a large amount of scrap but still is a critical importer due to the unorganized nature of the industry in the nation.
- In terms of revenue, North America was one of the largest regional market accounting for an excellent share of revenue in 2019. The share is primarily owing to the substantial amount of recycling in the U.S., closely followed by Canada. The recycling industry is of critical importance in Canada. Stated by the Bureau of International Recycling, Canada was the 5th largest ferrous scrap exporter in the world in 2018.
Key Benefits of the Report
- This study presents the analytical depiction of the ferrous scrap recycling market industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the ferrous scrap recycling market market share.
- The current market is quantitatively analyzed to highlight the ferrous scrap recycling market market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed ferrous scrap recycling market market analysis based on competitive intensity and how the competition will take shape in coming years
Questions answered in the ferrous scrap recycling market Report
- Who are the leading market players active in the ferrous scrap recycling market market?
- What current trends will influence the market in the next few years?
- What are the driving factors, restraints, and opportunities in the market?
- What future projections would help in taking further strategic steps?
Ferrous Scrap Recycling Market Report Highlights
By Scrap Type
By End Users
Key Market Players
Ward Recycling, Innovative Metal Recycling, OmniSource Corp, SA Recycling, Sims Metal Management Inc, Schuy Recycling, TSR Recycling GmbH & Co KG, American Iron & Metal Co Inc