Global Metal Recycling Industry Poised For Growth

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Researched by Industrial Info Resources (Sugar Land, Texas)--Increasing environmental consciousness and adoption of green practices have made recycling an indispensable part of today's world. As nations strive to foster a circular economy, industries like metal recycling have been gaining momentum and garnering significant investments worldwide.

Metal recycling entails transforming metal scraps from end-of-life structures into new metallic products. This technique contributes substantially toward waste management and also aids in the reduction of virgin ore mining, energy consumption and greenhouse gas emissions. According to Metaloop, utilizing secondary metals over primary ones lessens air pollution by 80%, water pollution by 76%, and water usage by 40%. As recycling metals is cheaper than procuring fresh ones, this process is economically viable and also helps in driving down production costs considerably.

As the green transition takes center stage and ecological policies become stringent, countries worldwide are prioritizing recycling and using scrap metals to meet the advancing demand for metals.

China, the world's largest producer of steel and aluminum, and the U.S. are extensive users of metal scrap. According to data from the Bureau of International Recycling (BIR), recycled steel constituted 23.1% of crude steel production in China and 69.1% in the U.S. during the first half of 2024. China also is the world's largest user of recycled steel and has increased its consumption by 5.4% to 122.54 million tonnes in the first half of 2024, according to the BIR. As recycling efforts continue to grow globally, scrap metal companies are investing in new capacity buildouts and expanding existing capacities to meet this rising demand.

Industrial Info is tracking about 1,700 operational metal recycling plants globally, most of which are in the U.S. (747), China (485), South Korea (48) and Germany (44).

Industrial Info also tracks 839 active capital-spending projects worth about US$65 billion at metal recycling plants around the world.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can click here for a full list of plants and here for a full list of projects.

With a spending of more than US$44 billion across 492 projects, China is the biggest driver of investment. It is followed by the U.S. with a spend of about US$11 billion (across 155 projects). An investment of US$1 billion each is being tracked in South Korea and Germany, while other countries with substantial investments include Mexico, Spain, Italy, Brazil and Canada.

With an aggregate investment of about US$8 billion, Contemporary Amperex Technology Company Limited (Fujian, China), Redwood Materials Incorporated (Carson City, Nevada) and Yawang Energy Company Limited (Guangdong, China) are the top players in the market. They collectively hold a market share of about 12%.

About 54% of the investment is geared toward grassroot developments, 31% toward plant expansions and 9% toward unit additions. Around 47% of the total spend is in the planning phase, 32% is in the engineering stage and 21% is under construction. Most of these projects are expected to be completed by December 2025, while the rest are anticipated to reach fruition by December 2035.

Despite the industry's progress, challenges such as product variation, contamination of scrap metal, inadequate collection infrastructure and regulatory compliance continue to persist. However, the integration of new-age technologies like artificial intelligence and machine learning is expected to optimize efficiency, helping in waste segregation and quality determination of metal scrap.

With 393 new plants expected globally, most of which are expected to start between 2025 and 2026, the future for metal recycling seems promising.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).