Scrap Metal Recycling Market: Introduction
- Scrap metal recycling is the process of recovering metals from products which have reached the end of the product life cycle. Scrap metal which is recovered is then introduced as raw material in the production of new goods. Scrap metals are bifurcated into ferrous and nonferrous categories. Nonferrous metals are better valued as compared to ferrous metals.
- Ferrous scrap has some degree of iron while nonferrous scrap does not contain iron. Nonferrous scrap contains aluminum, lead, zinc, copper etc. The recycled scrap metal finds application in residential, commercial, and industrial sectors.
- Recycling reduces rare earth metal mining activities, besides reducing waste and saving energy. Considering these factors, the scrap metal recycling market is expected to grow during the forecast period.
Key Drivers, Restraints, and Opportunities of the Global Scrap Metal Recycling Market
- Scrap metals can be recycled repeatedly without any characteristic loss. The reuse of metals reduces the carbon footprint and helps in betterment of the environment. Scrap metal recycling and reusing helps to create a sustainable future. Scrap metal recycling reduces greenhouse gas emissions. As per Institute of Scrap Recycling Industries (ISRI), scrap metal recycling may cut 300 to 500 million tons of greenhouse gas emission.
- The scrap metal recycling market is expected to improve with the recycling rate. Development of recycling facilities in developed and developing regions, better waste collection systems, and promotion of metal recycling by manufacturers and governments is likely to help in business growth and create new business opportunities and increase employment. Canadian Association of Recycling Industries (CARI) states that the scrap metal recycling industry in Canada employs 1, 60,000 people directly and indirectly. The usage of rare metals in various products and its shortage is also expected to boost the scrap metal recycling market.
- The existing products are likely to be antiquated with development of technology. The rise in technology, industrialization & urbanization, disposable income, and awareness are expected to be the factors responsible for driving the scrap metal recycling market during the forecast period.
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Asia Pacific to Lead the Global Scrap Metal Recycling Market
- Geographically, the global scrap metal recycling market can be divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
- Asia Pacific will lead the scrap metal recycling market due to increasing urbanization, industrialization, and construction activities, followed by North America. The scrap metal industry in the U.S. accounted for around US$ 50 Billion in 2015.
- Rapid growth of construction activities in Middle East & Africa is set to provide good business opportunities to the market.
