UAE Bans Scrap Metal Exports Due to Scarcity amid COVID-19 Crisis
The scrap metal recycling market has not been exempted from the COVID-19 turmoil. Since the furlough scheme is evident in the U.K., many scrap yards have been shut down and are working at reduced capacities. The demand for scrap metal recycling has fallen since the coronavirus pandemic has caused disruptions in shipment of metals. The price of aluminum is underperforming, since nearly all the U.K. aluminum smelters have been closed.
Due to scarcity of scrap, some countries in the scrap metal recycling market such as the United Arab Emirates (UAE) and South Africa (SA) have imposed bans on the export of scrap metal. As such, some countries are becoming fully functional, which has reopened economies and led to the demand for metals including copper.
Request a sample to get extensive insights into the Scrap Metal Recycling Market
Separation, Purification Costs of Recycling Scrap Copper to Hamper Market Growth
Copper is considered as a precious metal used in electrical components, owing to its ability to conduct electricity safely and efficiently. However, recyclers find it challenging to separate copper from scrap metal. Added purification costs for copper make it undesirable for recycling, since purified copper is necessary for maintaining the conductivity of the metal. Hence, companies in the scrap metal recycling market are establishing fixed sources for scrap copper to avoid additional purification and separation costs.
Apart from copper, iron and aluminum are largely recycled by companies in the scrap metal recycling market. Zato – an Italy-based specialist in scrap metal recycling is capitalizing on this opportunity to cost efficiently produce aluminum, which otherwise is a cost intensive process when done using extraction of the ore.
To understand how our report can bring difference to your business strategy, Ask for a brochure
Production of Steel from Iron Ore Necessary for Scrap Steel Supply
Steel is gaining prominence in the scrap metal recycling market due to its potential to meet the goal for a fully circular economy. ArcelorMittal S.A. – a Luxembourgish multinational steel manufacturing corporation is augmenting steel’s advantage of high recyclability to eliminate all unnecessary landfilling of residues. High cost of steel production as compared to the supplies of scrap available is grabbing the attention of manufacturers in the scrap metal recycling market.
Even as recycling activities are picking pace, recyclers are expecting that by the end of 2050, there might be a scarcity for scrap steel. Hence, the production of steel from iron ore sources needs continuation in order to create abundance for scrap steel in the upcoming decades.
Advanced Sorting Systems Enable High Throughput for Alloy Compositions
Intelligent sorting systems are benefitting stakeholders in the scrap metal recycling market. Chrysalix Venture Capital – an investor in the technologies for the energy sector has announced to invest in Sortera Alloy’s intelligent sorting system for the upcycling of non-ferrous scrap metal such as copper, zinc, aluminum, and brass. Recyclers are opting for sorting systems that enable accurate and high throughput for the sorting of metals and alloy composition through a combination of sensor fusion and AI/ML (artificial intelligence/machine learning) image processing.
Advanced scrap feeder designs are gaining prominence in intelligent sorting systems. Circularity of metals has become important in the scrap metal recycling market.
Demand for Non-ferrous Metals in India Automotive Manufacturing Boosts Market Growth
India holds lucrative revenue opportunities for companies in the scrap metal recycling market. India’s Ministry of Mines is working toward establishing a sustainable scrap recycling ecosystem with the adoption of cutting-edge technology and optimal processes. The region’s growing demand for metals has caught the attention of investors and other stakeholders in the scrap metal recycling market. The Indian Government’s Make in India initiative is aimed at boosting the manufacturing share of GDP by extending applications for non-ferrous metals in automotive, defense, and power industries.
Demand, production, and import of aluminum are gaining steady growth in India. Companies in the scrap metal recycling market are capitalizing on this opportunity, since recycling aluminum requires significantly less energy as compared to producing primary aluminum.
Stuck in a neck-to-neck competition with other brands? Request a custom report on Scrap Metal Recycling Market
Scrap Metal Recycling Market: Overview
- According to Transparency Market Research’s latest research report on the global scrap metal recycling market for the historical period 2018–2019 and the forecast period 2020–2030, rising demand from the metal recycling industry is expected to boost the global scrap metal recycling market during the forecast period
- In terms of revenue, the global scrap metal recycling market is estimated to exceed the value of US$ 516.4 Bn by 2030, expanding at a CAGR of ~6% during the forecast period
Technological Advancement in Scrap Metal Recycling Market: A Key Driver
- The scrap metal recycling market is expected to improve with the advancement in recycling rates. Development of recycling facilities in developed and developing regions, better waste collection systems, and promotion of metal recycling by manufacturers and governments are likely to help in business growth, and create new business opportunities and increase employment in the scrap metal recycling market. The Canadian Association of Recycling Industries (CARI) states that the scrap metal recycling industry in Canada employs 160,000 people directly and indirectly. The usage of rare metals in various products and their shortage is also expected to boost the scrap metal recycling market.
- Scrap metal recycling products are likely to be antiquated with the development of technology. Increasing industrialization & urbanization, rising disposable income, and awareness are projected to drive the scrap metal recycling market during the forecast period.
Quality Issues with Recycled Material – A Market Restraint
- Aluminum, steel, and other metals need to be manually separated from other recyclable material such as plastic and paper. Metals, especially aluminum, tend to degrade after each reuse cycle, so products using recycled metals can vary in quality, but most metals never reach a point where they are no longer recyclable. Scrap metal recycling products still uses energy, albeit about 95 percent less than new production.
- Some states and local governments now have laws that mandate the scrap metal recycling procedure of metals and other materials. Florida’s Lee County requires the recycling of metals and other scrap in the hope of making future recycling cheaper. End users need to recheck government regulations and standards before using any materials.
Increasing Demand from Asia Pacific
- Asia Pacific accounted for major share of the scrap metal recycling market in 2019. Increasing demand for scrap products coupled with easy government rules and regulations are major factors expected to boost the growth of the scrap metal recycling market.
- Europe is the second largest scrap metal recycling market as a result of high consumer adoption rate. Largest consumer demand from automotive, and building & construction segments is observed in developed countries, including Germany, the U.K., France, and others.
Scrap Metal Recycling Market: Competition Landscape
- Detailed profiles of providers of scrap metal recycling have been provided in the report to evaluate their financials, key product offerings, recent developments, and strategies
- Key players operating in the scrap metal recycling market focus on product innovation and development. This factor is expected to create new opportunities in the scrap metal recycling market.
- Key players operating in the global scrap metal recycling market are
- ArcelorMittal
- Aurubis AG
- Kuusakoski Oy
- Nucor Corporation
- AIM Recyclage, Inc.
- Sims Limited
- Omnisource Corporation
- Metallon Recycling Pte Ltd
- DBW Metals Recycling
- TKC Metal Recycling Inc.
Scrap Metal Recycling Market: Key Developments
- In October 2020, ArcelorMittal and Triple M joined forces to form Integrated Metal Recycling Inc. This joint venture will combine many of the recycling activities of the two partners in Quebec. This venture is projected to improve revenue of the scrap metal recycling business.
- In May 2020, Aurubis AG acquired the scrap metal recycling company Metallo. This acquisition was made to improve its metal scrap production capacity. It is also likely to help Aurubis AG increase its global market reach in the scrap metal recycling segment.
- In December 2019, Nucor Corporation acquired TrueCore, LLC (TrueCore), an insulated metal panel manufacturing company with a facility in Laurens, South Carolina. TrueCore produces insulated metal panels, serving the cold storage market, with future plans for additional commercial and industrial applications. This acquisition will help the companies to improve overall production levels.
Read Our Latest Press Release:
About Us
Transparency Market Research is a next-generation market intelligence provider, offering fact-based solutions to business leaders, consultants, and strategy professionals.
Our reports are single-point solutions for businesses to grow, evolve, and mature. Our real-time data collection methods along with ability to track more than one million high growth niche products are aligned with your aims. The detailed and proprietary statistical models used by our analysts offer insights for making right decision in the shortest span of time. For organizations that require specific but comprehensive information we offer customized solutions through ad-hoc reports. These requests are delivered with the perfect combination of right sense of fact-oriented problem solving methodologies and leveraging existing data repositories.
Contact
Transparency Market Research State Tower,
90 State Street,
Suite 700,
Albany NY – 12207
United States
USA – Canada Toll Free: 866-552-3453
Email: [email protected]
