By Carolina Curiel
November 24, 2016 06:58:03 AM
SEATTLE (Scrap Monster): The recent report published by Allied Market Research forecasts metal recycling market to reach $446,472 million by 2020. The report titled “Metal Recycling Market - Global Opportunity Analysis and Industry Forecasts, 2014 – 2022”predicts CAGR growth of 4.5% during the period from 2016 to 2022.
According to the report, metal recycling ensures availability of high-value resources. It also generates immense economic value in addition to preventing harmful environmental impacts and minimizing greenhouse gas emissions. On account of the huge benefits delivered by metal recycling sector, various governments across the world have announced several schemes to promote recycling of metal waste. For example, Japan’s home appliances recycling law makes it mandatory for consumers of large appliances such as refrigerators, air conditioners, and washing machines to dispose them to retailers or scrap traders.
The report classifies the scrap metal market into two categories-ferrous metals and non-ferrous metals. Between them, ferrous metals are expected to dominate the market during the forecast period. Ferrous metals are expected to generate $252,117 by 2020. Ferrous metal was the highest contributor of revenue to global metal recycling market in 2014, accounting for 57.6% share. The report states that ferrous metal is likely to maintain its dominance during the forecast period also. Incidentally, non-ferrous metals are the fastest growing sector. Non-ferrous metals are expected to register CAGR growth of 4.9% by 2020.
Among various regions, Asia-Pacific is likely to dominate the metal recycling market. The region is anticipated to generate $212,118 million by 2022. The report predicts metal recycling market in the Asia-Pacific region to grow at a CAGR of 5.2%. Increased spending on account of rapid urbanization in countries such as China and India coupled with rise in awareness of environmental consciousness among general public are cited as the two key triggers for the projected growth in metal recycling market in the region. In terms of revenue, North America is the second fastest growing region, with a CAGR growth of 4.6% during the period until 2020.
The building and construction industry had been one of the highest contributors of metal waste. The industry will continue to dominate the global metal recycling market during the forecast period, says Allied Market Research.
According to the report, many companies are likely to launch new products or enter into partnerships in order to expand their market reach. It cites the recent 50:50 joint-venture deal signed between Charlotte, North Carolina-headquartered steel producer Nucor Corporation and Japanese steel major, JFE Steel Corp to build a new steel plant in central Mexico to produce galvanized steel sheets for automobile industry.
The key market players featured in the report includes ArcelorMittal, Commercial Metals Company, SIMS Metal Management Limited, Nucor Corporation, Aurubis AG, European Metal Recycling Limited, Schnitzer Steel Industries, Inc., Dowa Holdings Co., Ltd., OmniSource Corporation, and Tata Steel.
Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon.