Recycled Metal Market Analysis

Recycled Metal Market Analysis

In terms of volume, recycled ferrous metal market share constituted approximately 90% of the total industry share in 2018. Ferrous metals include iron & steel and finds wide-ranging applications across building & construction, transport, industrial machinery, electrical & electronics, defense and various other sectors. Its major application in building & construction is in manufacturing bridges, steel frameworks for buildings, drainage components and other architectural framework as it provides durability, strength, resistance to weather, etc. Growing ferrous metals demand from the abovementioned applications along with rising government initiatives to promote metal recycling will drive the recycled metal demand and thereby expected to trigger the reprocessed metal market growth in the forecast timeframe.

Recycled metal market share for transport constituted approximately 15% of the global recycled metal industry share in 2018. This is attributed to wide-ranging metal applications across transportation sector. For instance, ferrous metals are widely applicable in manufacturing automotive, ship, aircraft and marine components owing to its high strength, durability, stiffness, etc. Additionally, non-ferrous metals such as lead is widely applicable in the production of batteries which are used in the transportation sector. Strong rise in the transportation sector mainly in the economies such as China, India and Japan will trigger demand for recycled metal which will help drive the overall industry share by 2025.

Asia Pacific led the overall recycled metal market and accounted for more than 60% of the total industry share in 2018. Strong regional growth is mainly driven by rapidly growing construction, transportation and electronics industry in the region. This is attributed to rising investment in the mega infrastructure projects mainly in China and India by the regional government to boost country’s economy which will trigger recycled metal demand in the coming years. Moreover, rising socio-economic factors, purchasing parity and easy loan approvals is driving the automotive industry in the region, which will have direct positive impact on metal demand, resulting in propelling metal recycling process and therefore reprocessed metal market size in the coming years.