Recycled Steel Market is expected to Grow with a CAGR of 5.98% through 2030
The recycled steel market is
driven by increasing demand for sustainable construction materials, rising
environmental regulations, and cost advantages associated with recycling over
primary steel production in industrial applications.
According to TechSci Research
report, “Recycled Steel Market – Global Industry Size, Share,
Trends, Competition Forecast & Opportunities, 2030F”, the Recycled Steel Market was valued at USD 280.63 Billion in 2024 and is expected to reach USD 401.21 Billion by 2030 with a CAGR of 5.98%. The recycled steel market is being driven by
a combination of environmental, economic, and industrial factors that are
reshaping the global demand for sustainable materials. One of the primary
growth drivers is the increasing emphasis on reducing carbon emissions and
minimizing environmental impact across industries, which has prompted
manufacturers and governments to adopt greener alternatives like recycled
steel. As steel production from virgin raw materials is highly energy-intensive
and emits substantial greenhouse gases, the use of recycled steel, which
requires significantly less energy and resources, is gaining traction as a more
sustainable solution.
Additionally, the rapid
expansion of urban infrastructure, construction projects, and automotive
manufacturing is fueling the need for high-quality, cost-effective steel
products, and recycled steel presents an ideal option to meet these needs.
Governments worldwide are introducing stricter regulations and policy
frameworks aimed at promoting circular economy practices and sustainable
development, further encouraging the use of recycled materials in industrial
applications. Moreover, advancements in recycling technologies have enhanced
the quality, efficiency, and scalability of steel recycling processes, making
it more accessible and economically viable for a wide range of end-users. The
growing adoption of electric arc furnace (EAF) technology, which relies heavily
on scrap steel as a primary input, is also accelerating the shift toward
recycled steel in the global steel manufacturing sector.
In addition to environmental
benefits, recycled steel offers economic advantages by reducing raw material
costs and dependence on finite natural resources such as iron ore and coal. As
industries look to increase operational efficiency and reduce production costs,
recycled steel emerges as a strategic resource that balances sustainability
with profitability. The rising awareness and demand for green building
materials in the construction sector, along with certifications and incentives
that reward sustainable practices, are further boosting the market.
Furthermore, the automotive industry’s push toward lightweight and
environmentally friendly components is creating a robust market for recycled
steel, particularly in electric vehicles where material circularity plays a
vital role.
Emerging markets in
Asia-Pacific, Latin America, and Africa are witnessing rapid industrialization
and urban development, generating substantial scrap material and creating
favorable conditions for recycling infrastructure to grow. This, combined with
growing consumer preference for sustainable products, is creating a ripple
effect across the steel value chain. Supply chain innovations and digital
tracking technologies are also enhancing transparency and traceability in
recycled steel sourcing, fostering greater trust and adoption among
manufacturers. As industries globally continue to integrate ESG (Environmental,
Social, and Governance) goals into their operations, recycled steel is
increasingly seen as a key component of responsible sourcing and manufacturing
strategies. All these factors position recycled steel as a critical enabler of
sustainable industrial growth, offering long-term value across diverse sectors
while supporting global climate and resource efficiency goals.
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Figures spread through XX Pages and an in-depth TOC on the "Global Recycled Steel Market.”
Based on the Processing
Method, Shredding segment held the largest Market share in 2024. The shredded
steel segment is a powerful driver of growth within the recycled steel market,
propelled by a convergence of economic, environmental, and regulatory dynamics
that collectively elevate demand. As raw material costs remain volatile and
conventional steelmaking increasingly faces pressure from rising energy prices
and supply chain disruptions, recycled shredded steel emerges as an
economically attractive alternative that delivers cost stability and
predictable pricing for steel producers. In parallel, heightened environmental
concerns and commitments to decarbonization are fueling demand for recycling
technologies that significantly reduce CO₂ emissions compared to
primary blast-furnace steelmaking.
Shredding scrap metal enables
efficient separation of ferrous and non-ferrous components, improving feedstock
purity and enhancing steel quality. This, combined with advances in automated
sorting, sensor-based inspection, and robotics, drives productivity gains and
lowers operational overhead in recycling facilities. As new automotive,
industrial, and construction alloys require stringent consistency and
mechanical properties, shredded steel’s uniformity meets evolving customer
specifications. Governments and regulatory bodies across many regions have
intensified recycling mandates, waste diversion policies, landfill taxes, and
circular economy targets—creating a favorable compliance environment for the
shredding sub‑segment, while also incentivizing investment in shredding
infrastructure.
Industrial consolidation
within the scrap processing industry is improving plant scale and throughput,
enabling larger facilities to justify capital investments in high‑efficiency shredders that can
process mixed scrap streams with minimal sorting, further lowering per‑unit costs. Growing
industrialization and urbanization in emerging regions are expanding the volume
of post‑consumer and post‑industrial scrap streams
entering the recycling value chain, which increases the availability of scrap
feedstock for shredders and reinforces economies of scale. Moreover,
international scrap trade flows are optimizing as countries seek cost‑effective recycled input,
with shredded scrap now a key traded commodity—thereby promoting cross‑border recycling hubs and
integrating global supply chains.
Demand is also supported by
downstream sectors such as construction rebar, structural steel manufacturing,
and components for machinery, which increasingly rely on scrap‑based melts to meet quality
and sustainability objectives. Shredding plays a central role in enabling this
by converting bulky, irregular scrap items into standardized, dense shredded
pieces that can be melted with maximum furnace efficiency. The adoption of
energy‑efficient electric arc furnace (EAF) technology further
amplifies the role of shredded scrap, as EAF mills preferentially consume
shredded ferrous material, reducing energy intensity and greenhouse gas
emissions per ton of steel produced. Taken together, economic incentives,
regulatory drivers, technological innovation in shredding and sorting, scale
advantages, evolving trade dynamics, and downstream demand convergence make the
shredding segment of the recycled steel market a core growth enabler,
catalyzing the transition toward a more sustainable and resilient steel
industry.
Based on the region, Asia
Pacific is the fastest growing region in the recycled steel market, driven by
rapid industrialization, urbanization, and increasing demand for sustainable
construction and manufacturing materials. Countries such as China, India, and
Japan are expanding their steel recycling capacities to meet rising
infrastructure and automotive production needs while aligning with
environmental targets. Government regulations promoting resource efficiency and
lower emissions are accelerating the shift toward scrap-based steel production.
Additionally, the growth of electric arc furnace technology and the
availability of scrap materials are enhancing regional production capabilities,
positioning Asia Pacific as a key contributor to the global recycled steel
supply chain.
Major companies operating in
the Global Recycled Steel Market are:
- ArcelorMittal
- Nucor Corporation
- Steel Dynamics, Inc.
- Commercial Metals Company
(CMC)
- Tata Steel Limited
- Schnitzer Steel Industries,
Inc.
- Baosteel Group Corporation
- JSW Steel Ltd.
- EVRAZ plc
- Gerdau S.A.
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“The Global Recycled Steel
Market is expected to rise in the upcoming years and register a significant
CAGR during the forecast period. The recycled steel market is positioned for
robust growth, supported by increasing global focus on sustainability, circular
economy adoption, and decarbonization of industrial processes. Growing demand
across the construction, automotive, and infrastructure sectors for low-carbon
materials is accelerating the shift toward scrap-based steel production. The
expansion of electric arc furnace (EAF) capacity is further enhancing the
efficiency and scalability of recycled steel manufacturing. Regulatory mandates
and green certification initiatives are encouraging higher recycled content
usage. In addition, urbanization trends, investments in green infrastructure,
and the cost-effectiveness of recycled steel are making it an increasingly
strategic choice for manufacturers worldwide. Therefore, the Market of Recycled
Steel is expected to boost in the upcoming years.,” said Mr. Karan Chechi,
Research Director of TechSci Research, a research-based global management consulting
firm.
“Recycled
Steel Market - Global Industry Size, Share, Trends, Opportunity, and Forecast,
Segmented, By Scrap Type (Ferrous, Non-ferrous), By Application (Construction,
Automotive, Industrial Machinery, Others), By Processing Method (Shredding,
Melting, Compactors), By End-User (Mills, Foundries, Rebar Manufacturers), By
Region, By Competition, 2020-2030F”, has evaluated the future growth potential of Global Recycled
Steel Market and provides statistics & information on the Market size,
structure, and future Market growth. The report intends to provide cutting-edge
Market intelligence and help decision-makers make sound investment decisions.,
The report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in the Global Recycled Steel
Market.
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