The global market for Steel Scrap estimated at 574.5 Million Metric Tons in the year 2020, is projected to reach a revised size of 748.2 Million Metric Tons by 2026, growing at a CAGR of 4.5% over the analysis period.
Obsolete, one of the segments analyzed in the report, is projected to grow at a 5.3% CAGR to reach 438.5 Million Metric Tons by the end of the analysis period.
As the global reserves shrivel and the cost of extracting ore rises, scrap is expected to account for major portion of metal production in future. In the future, rising demand for raw materials used in steel making industry from rapidly expanding emerging markets such as China, India and Brazil is expected to fuel demand for steel scrap. The development of new lightweight products, bake hardenable grades, and high strength steels has allowed steel to withstand the challenge posed by a wide range of competitive materials.
After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Prompt segment is readjusted to a revised 3.4% CAGR for the next 7-year period. This segment currently accounts for a 26.3% share of the global Steel Scrap market. Obsolete scrap, or old scrap, represents the largest segment.
Obsolete scrap consists of any redundant steel product with no usage life and is generally collected when the products made from steel reach their end of life. Prompt scrap is obtained when steel products are being manufactured. This type of scrap consists of punchings, turnings, borings and cuttings.
The U.S. Market is Estimated at 52.3 Million Metric Tons in 2021, While China is Forecast to Reach 301.7 Million Metric Tons by 2026
The Steel Scrap market in the U.S. is estimated at 52.3 Million Metric Tons in the year 2021. The country currently accounts for a 8.78% share in the global market. China, the world’s second largest economy, is forecast to reach an estimated market size of 301.7 Million Metric Tons in the year 2026 trailing a CAGR of 5.7% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.7% and 3.2% respectively over the analysis period.
Source: Yahoo! Finance