Market Snapshot

The global ferrous scrap market is gaining impressive momentum. With an estimated value of USD 70.40 billion in 2024, it’s projected to grow to USD 75.47 billion by 2025, and positively surge to USD 143.75 billion by 2034, reflecting a solid CAGR of 7.1% over this period

What’s Driving the Surge?

1. Soaring Steel Demand: Rapid urbanization and industrial expansion—especially in Asia—are fueling the need for steel in construction and manufacturing. This has directly raised the demand for ferrous scrap, a vital raw material for electric arc furnaces (EAFs).
2. Shift Toward Green Steel: As sustainability takes center stage, EAF-based steel production—which relies heavily on scrap—offers lower energy consumption and emissions compared to traditional blast furnaces.
3. Government Support & Trade Policies: Incentives and tariff strategies are bolstering domestic scrap usage. For instance, India has suspended customs duties on iron scrap until 2026 to support its aim of producing 300 million tons of steel by 2030.
4. Tech-Powered Recycling: Advances in sorting, shredding, and automation are improving processing efficiency. Moreover, artificial intelligence in recycling operations is increasing throughput while minimizing.
5. Urban Renewal and Infrastructure Boom: The demolition of obsolete structures generates a rich feedstock of scrap, aligning supply with demand driven by modern construction and renovation efforts

Market Landscape & Players

Top Segments

• Application-wise, steel production dominates, followed by applications in automotive, construction, and foundry sectors.
• Types of scrap: Heavy Melting Scrap (HMS) stands out as the most widely used and priced scrap category. It’s followed by shredded scrap, and then the more specialized turnings and bundles.
• End-users: Of course, steel mills lead in demand, with foundries and recycling plants playing key supporting roles.

Regional Insights

• North America remains a dominant player, particularly the United States, thanks to strong recycling infrastructure and policy support.
• Asia-Pacific is the fastest-growing regional market, led by China and India, which are ramping up both steel production and recycling capacities.
• Europe prioritizes greener steel production and robust recycling frameworks, while Latin America, the Middle East, and Africa (LAMEA) are steadily expanding through increasing industrial base and infrastructure investments.

Key Industry Players

Major industry players shaping the market include:

• ArcelorMittal
• Nucor Corporation
• Schnitzer Steel Industries
• Commercial Metals Company (CMC)
• Steel Dynamics Inc.
• Tata Steel, Posco Recycling, Sims Metal Management, Gerdau S.A., and others.

Notable recent developments:

• Nucor’s investment: In April 2025, Nucor announced a USD 500 million investment into a new EAF plant to increase its scrap-based steel production by 2026.
• Schnitzer Steel: Expanded its U.S. recycling capabilities in March 2024, integrating advanced sorting technology.
• ArcelorMittal: Invested in EAF technology in early 2024 to bolster its recycled scrap usage.
• Sims Metal Management: In February 2024, the company opened a high-tech recycling facility in the U.K. to enhance scrap processing and support carbon reduction goals.
• Gerdau S.A.: Expanded its operations in Brazil in March 2024 by deploying automated sorting systems to boost efficiency and scrap quality

Challenges & Opportunities

Threats to Watch

• Price Volatility: Scrap prices can fluctuate sharply due to energy costs, market demand, or supply disruptions—threatening margins across the supply chain.
• Trade Barriers: Tariffs or protectionist policies—like those implemented by the U.S. and India—can disrupt US scrap flows and create cost pressures.

Opportunity Zones

• Green Steel Demand: As more nations pursue emissions reduction, scrap-based steel is becoming increasingly cost-effective and environmentally preferred.
• Emerging Markets: Developing regions like Asia-Pacific and parts of Latin America hold massive untapped potential as recycling infrastructure improves.
• Advanced Recycling Tech: Investments in AI-enabled sorting, shredding, and quality control are becoming competitive differentiators.

Strategic Takeaways

• Invest in Emerging Markets: Companies looking to expand should prioritize opportunities in Asia and other fast-growing regions.
• Lead in Green Innovation: Embrace EAF technology and automated processing to stay competitive and meet sustainability goals.
• Navigate Policies Smartly: Stay informed on evolving tariffs and government incentives to adapt supply chain strategies effectively.
• Focus on Quality & Specialization: Scrap processors can differentiate themselves by delivering high-quality HDD, shredded materials, or specialized bundles.

Conclusion

The ferrous scrap market is dynamic, evolving, and increasingly critical to the future of sustainable steel. With strong growth fueled by demand, innovation, and regulation, the industry is ripe for those positioned to process, refine, and supply green steel efficiently.