With Market Size Valued at 745.9 Million Metric Tons by 2026, it's a Stable Outlook for the Global Steel Scrap Market

SAN FRANCISCO, May 31, 2022 /PRNewswire/ -- A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, today released its report titled "Steel Scrap - Global Market Trajectory & Analytics". The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.

FACTS AT A GLANCE
What's New for 2022?

• Global competitiveness and key competitor percentage market shares
• Market presence across multiple geographies - Strong/Active/Niche/Trivial
• Online interactive peer-to-peer collaborative bespoke updates
• Access to our digital archives and MarketGlass Research Platform
• Complimentary updates for one year

Edition: 21; Released: May 2022
Executive Pool: 1262
Companies: 82 - Players covered include ArcelorMittal S.A.; Baosteel Resources Co., Ltd.; Commercial Metals Company; EVRAZ North America; Gerdau Group; Maanshan Iron & Steel Company Limited; Metalico, Inc.; Nucor Corporation; Oryx Stainless Group; Schnitzer Steel Industries, Inc.; Sims Metal Management Limited; Steel Dynamics, Inc. and Others.
Coverage: All major geographies and key segments
Segments: Segment (Obsolete, Prompt, Home); End-Use (Construction, Automotive, Shipping, Consumer Appliances, Other End-Uses)
Geographies: World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Turkey; Rest of Europe; Asia-Pacific; India; South Korea; Rest of Asia-Pacific; Latin America; Brazil; Rest of Latin America; Rest of World.

Complimentary Project Preview - This is an ongoing global program. Preview our research program before you make a purchase decision. We are offering a complimentary access to qualified executives driving strategy, business development, sales & marketing, and product management roles at featured companies. Previews provide deep insider access to business trends; competitive brands; domain expert profiles; and market data templates and much more. You may also build your own bespoke report using our MarketGlass™ Platform which offers thousands of data bytes without an obligation to purchase our report. Preview Registry

ABSTRACT-

Amid the COVID-19 crisis, the global market for Steel Scrap estimated at 624.5 Million Metric Tons in the year 2022, is projected to reach a revised size of 745.9 Million Metric Tons by 2026, growing at a CAGR of 4.6% over the analysis period. Obsolete, one of the segments analyzed in the report, is projected to grow at a 5.4% CAGR, while growth in the Prompt segment is readjusted to a revised 3.5% CAGR. World steel scrap market declined considerably in 2020, amid crushing impact of ongoing COVID-19 crisis on the world steel industry. Various COVID-19 related factors contributed to sharp drop in sales and revenue of steel industry, while wielding a parallel negative influence on steel scrap market. A major factor negatively impacting the market is the lockdowns imposed by governments in several parts of the world, which curbed the non-essential enterprise activity as well as people's movement in streets and markets. Delays and disruptions in production, exports and imports wield a considerable impact on the steel market.

It was evident that steel manufacturers, especially those catering to construction and automotive sectors with complex supply chains were hard hit as transportation, trade and movement of goods remained crippled due to the COVID-19 pandemic. It is already well understood that the COVID-19 crisis will result in shrinkage of capital resources; workforce layoffs/reduction and loss in productivity; supply chain disruptions; difficulties with funding; and increase in cybersecurity risks and fraud. The slower economic activity means reduced demand for construction materials, automotive, machinery and appliances, and overall lower manufacturing orders.

The massive decline in construction spending worldwide in 2020 paints a grimmer picture for steel industry. With consumers not seen as likely to spend on new homes, construction demand will decline impacting profitability and revenues of steel manufacturers. With the automotive industry collapsing under the lockdowns and government curbs, automotive manufacturing is set to receive the worst ever setback sending knock-on effects across the upstream supply chain. Without government intervention and financial support, several automotive companies in developed and developing countries are expected to file for bankruptcies.

COVID-19 crisis affected supply chain of steel scrap industry at various levels. The scrap used by steel makers is a mixture of obsolete scrap, prime scrap from producers and revert scrap from mills. Obsolete scrap represents over half of total scrap volume. The availability of obsolete scrap depends on useful life of a product and recycling rate. The COVID-19 pandemic disrupted recycling activity and discouraged people from replacing white goods, which resulted in low production of obsolete scrap. Revert scrap is generated by steel makers as waste during the production process. With the pandemic hitting steel production globally, the output of revert scrap declined in 2020. On the other hand, prime scrap is generated during the production of steel-based components. Low demand for steel products and subdued manufacturing activity during the COVID-19 pandemic are anticipated to affect overall output of prime scrap. The low availability of scrap along with muted flow enabled steel scrap to undergo price escalations. While these factors are expected to curb overall consumption of steel scrap, the anticipated change in Chinese policy related to import of steel scrap is likely to benefit the steel scrap industry. Steel scrap witnessed reduced supply on account of disruptions in supply chain due to COVID-19 pandemic, leaving steel firms struggling for raw materials.

Going forwards, main factors that affect the usage of scrap in steel making will be the metallic volume needed for supporting steel production which in turn influences the choice within BOF and EAF, domestic scrap availability and scrap demand. Based on the production process applied in each sector, and the availability of domestic scrap, usage of scrap in the manufacturing of steel differs significantly throughout the world. The overall share of scrap with regard to metallic input may be as high as around 85% in regions that heavily rely on EAF technology for the production of crude steel. Although some markets have high EAF share, as they opt for direct reduced iron or DRI as the principal input, overall scrap usage worldwide is very low. Further, few countries have cheap and easy access to resources like natural gas. Another factor influencing the market is the volume and quality of steel products consumed as this impacts the usage of scrap. Cash availability and capital costs also impact the usage of scrap as it influences the choice of steelmaker between BOF and EAF.

As majority of scrap steel is used in the production of new steel, trends and developments in the steel industry significantly influence the demand scenario in the steel scrap industry. Also, since scrap metal is tradable globally, economic conditions tend to significantly influence demand patterns and pricing trends. In the upcoming years, 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. Also driving growth is the importance being placed by emerging economies on increasing recycled metal scrap consumption to reduce the carbon footprint. Global warming is one of the most important issues currently faced by the global steel industry. Recycling of scrap significantly reduces CO2 emissions resulting in rising use of recycled steel in the manufacturing of goods, thus driving demand for steel scrap. Increase in automobile production is also expected to spur demand for steel and recycled steel scrap used in automobiles. Also, the rapid increase in the number of end-of life vehicles (ELV) in countries such as China is expected to help expand scrap volumes. However, the imposition of restrictions on export of steel scrap by few countries presents a challenge for the global steel industry, particularly countries that are reliant on imports to meet domestic requirements. This is primarily because, although steel scrap, with its limited availability, was considered as a strategic resource in many countries, more than 25 countries already imposed different restrictions on exports of steel scrap. These regulations range from total ban on exports of steel scrap to increased taxation on scrap exports. Given the scenario, the market is expected to witness frequent hike in prices of steel scrap and enhanced demand for scrap alternatives as well as high average steel scrap prices. More

MarketGlass™ Platform
Our MarketGlass™ Platform is a free full-stack knowledge center that is custom configurable to today`s busy business executive`s intelligence needs! This influencer driven interactive research platform is at the core of our primary research engagements and draws from unique perspectives of participating executives worldwide. Features include - enterprise-wide peer-to-peer collaborations; research program previews relevant to your company; 3.4 million domain expert profiles; competitive company profiles; interactive research modules; bespoke report generation; monitor market trends; competitive brands; create & publish blogs & podcasts using our primary and secondary content; track domain events worldwide; and much more. Client companies will have complete insider access to the project data stacks. Currently in use by 67,000+ domain experts worldwide.

Our platform is free for qualified executives and is accessible from our website www.StrategyR.com or via our just released mobile application on iOS or Android

About Global Industry Analysts, Inc. & StrategyR™
Global Industry Analysts, Inc., (www.strategyr.com) is a renowned market research publisher the world`s only influencer driven market research company. Proudly serving more than 42,000 clients from 36 countries, GIA is recognized for accurate forecasting of markets and industries for over 33 years.

CONTACTS:
Zak Ali
Director, Corporate Communications
Global Industry Analysts, Inc.
Phone: 1-408-528-9966
www.StrategyR.com
Email: [email protected]

LINKS
Join Our Expert Panel
https://www.strategyr.com/Panelist.asp

Connect With Us on LinkedIn
https://www.linkedin.com/company/global-industry-analysts-inc./

Follow Us on Twitter
https://twitter.com/marketbytes

Journalists & Media
[email protected]

SOURCE Global Industry Analysts, Inc.