It is being predicted that the global market for steel scrap (including stainless steel) will reach 755 million metric tons by 2024. The reasoning is that this growth will be driven by the migration towards steelmaking technologies that rely heavily on steel scrap such as Electric Arc Furnaces (EAF) and blast oxygen furnaces (BOFs). The market is set to benefit from rising investments in scrap metal extraction equipment; development of recycling technologies that offer higher recycled yield; and growth in digitization across the supply chain which enable flexible material flow and improved efficiency of inventory management.
Asia-Pacific represents the largest and the fastest growing market worldwide with a CAGR of 5.5% over the analysis period. The growth in this region is caused by economic growth and a parallel increase in demand for steel produced by sustainable practices; and enforcement of tighter environmental regulations that exert pressure on manufacturers to reduce emissions. With countries such as China and India reaching advanced stages of industrialization, availability of post-consumer scrap is increasing thus creating an environmental burden that requires sustainable resolution.