May 09, 2017 11:30:02 AM
SEATTLE (Scrap Monster): A recent report published by Persistence Market Research (PMR) suggests exponential CAGR growth to recycled steel market during the period from 2017 to 2025. The research report titled “Recycled Steel Market: Global Industry Trend Analysis 2012 to 2017 and Forecast 2017 – 2025” also provides detailed analysis of industry trends during the past five years.
The report states that recycled steel has proved to be more cost-effective than creating new steel. There are three broad categories of scrap steel-home scrap, prompt scrap and obsolete scrap. The categories of steel scrap are collected at steel refineries. The process involves removal of Tin from them using reverse electroplating procedure and conversion into liquid metallic iron, which is used in the production of new steel. Recycled steel is used for various industries such as packaging, automobile, aircrafts etc. Recycled steel saves landfill space, prevents emission of greenhouse gases when compared with new steelmaking process and minimizes use of raw materials such as coal, iron ore and limestone.
The recycled steel market is mainly driven by several factors such as investments in equipment used for scrap metal extraction, extent of application of recycled steel by sectors such as automobile and construction sectors and the establishment of electric arc furnace steel mills. At the same time, availability of alternative metals and restrictions on scrap steel exports may pose challenges to recycled steel market during the forecast period.
According to the report, global ferrous scrap metal recycling market was valued at 755.53 MMT in terms of consumption in 2016. The global scrap metal recycling market is likely to post a CAGR growth of more than 3% from 856.22 MMT in 2016 to 997.94 MMT in 2021, registering an incremental growth of 141.72 MMT. The scrap metal recycling market in Asia-Pacific (APAC) region is expected to touch 586.21 MMT in 2021.
The report provides segmentation of recycled steel market based on end use industry. By industry, the market is segmented based on building and construction, packaging, automotive, industrial machinery, electronics and electrical equipment, shipbuilding and others. By source of material, the recycled steel market is segmented based on beams, machines and equipment, cans and containers, longstanding furnishings and appliances.
Among regions, APAC is expected to exhibit relatively high growth rate, followed by Europe and North America. The dominant steel industry in the above mentioned regions is likely to produce enormous quantities of scrap metal. Recycled steel demand is expected to witness significant jump in Middle East and Africa during the forecast period. On the other hand, Latin American recycled steel market is expected to remain subdued due to limited availability. The report identifies ArcelorMittal S.A., Gerdau group, Metalico Inc., Maanshan Iron & Steel Company Limited, Baosteel Resources Co. Ltd. and Nucor as the key market participants in the global recycled steel market.