Recycled metal consists of ferrous and non-ferrous scrap metals that are collected and processed for reuse in various products. The recycling of metals helps in saving natural resources and energy used to mine and refine raw materials. Recycled ferrous metals include steel, stainless steel andcast iron, while recycled non-ferrous metals include aluminum, copper, lead, nickel, zinc and precious metals. The global recycled metal market provides sustainable production of metals at lower costs which benefits manufacturers.

The global recycled metal Market is estimated to be valued at US$ 163.7 billion in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
Supporting sustainable development through reduced energy usage and prevention of environmental pollution presents a key opportunity for growth of the recycled metal market. Recycling 1 tonne of steel saves 1.1 tonnes of iron ore, 630 kilograms of coal and 55 kilograms of limestone. It also saves around 60% of the energy used in the primary production of steel. Similarly, recycling aluminum requires only 5% of the energy needed to produce primary aluminum from bauxite ore. Increased recycling leads to decreased mining activities, thereby reducing landfill and supporting goals of sustainability. Growing focus on circular economy and sustainability practices among industries and consumers is expected to drive demand for recycled metals over the forecast period.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is low in the recycled metal market due to barriers to entry like high manufacturing costs, established distribution channels and brand recognition possessed by existing players.

Bargaining power of buyers: The bargaining power of buyers is high given the availability of substitute products. Buyers can easily switch to virgin raw materials if recycled metal manufacturers try to raise prices.

Bargaining power of suppliers: The bargaining power of suppliers is low in the recycled metal market since it is a fragmented industry with numerous scrap metal suppliers. Also, recycled metal is relatively inexpensive to produce.

Threat of new substitutes: The threat of substitutes is moderate as virgin raw materials can be used instead of recycled metals for certain applications. However, recycled metal offers sustainability and cost benefits.

Competitive rivalry: Competitive rivalry is high among recycled metal companies given the large number of players and absence of differentiation between products.

SWOT Analysis
Strength: Recycled metals are cheaper to produce than virgin materials and help reduce carbon footprint. There is abundant supply of scrap metal.
Weakness: Quality of recycled metals can vary significantly. Collection and sorting of scrap is labor-intensive.
Opportunity: Demand is growing from construction and automotive industries due to sustainability initiatives. Emerging technologies are improving metal sorting capabilities.
Threats: Strict regulations around scrap collection in some regions. Economic downturns reduce scrap generation.

Key Takeaways
The Global Recycled Metal Market Size is expected to witness high growth over the forecast period of 2023 to 2028 driven by thriving end-use industries and focus on sustainability.

The Asia Pacific region currently dominates the global recycled metal market with China, Japan and India being the major consumers. APAC is projected to maintain its lead during the forecast period attributed to growing construction activities, automotive production and robust economic development in the region.

Key players operating in the recycled metal market are Schnitzer Steel Industries, Inc., Sims Metal Management Limited, ArcelorMittal, Nucor Corporation, Commercial Metals Company. These players are focusing on capacity expansion and acquisition strategies to gain higher market share. They are also investing in advanced sorting technologies to improve metal recovery rates.

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