The global non-ferrous scrap recycling market size was valued at USD 258.89 million in 2021, and is projected to reach USD 341.35 million by 2030, registering a CAGR of 3.12% from 2022 to 2030. Non-ferrous metals are metalling whose primary alloying component is not iron. Non-ferrous metals, generally more expensive than steel and iron, are widely employed due to their favourable features, such as the high strength-to-weight ratio of aluminium, the high conductivity and malleability of copper, and the strong corrosion resistance of nickel and zinc. Lead, nickel, zinc, aluminium, and copper are non-ferrous metals that can be repeatedly recycled without losing their chemical or physical qualities. This knowledge increases the demand for non-ferrous scrap, collected from various end-use sectors and processed at recycling centres. Increasing societal awareness of the environment, economy, and energy savings about recycling these metals is a market growth driver. The non-ferrous metal recycling process begins with the collection and baling of bulky non-ferrous metals, such as cuttings from industrial manufacturing operations, aluminium beverage cans, and obsolete scrap, into blocks of varying sizes. In addition, aluminium, the most plentiful metal in the Earth's crust, is one of the most recycled substances.
The increase in discretionary money is the key growth driver for the global non-ferrous metal recycling market. Non-ferrous metals, particularly nickel, silver, copper, aluminium, and tin, share the ability to endure a limitless number of recycling processes without losing their original qualities. Recycling is also a wise choice from a financial standpoint, as using already extracted minerals, especially for ubiquitous metals like aluminium, is less expensive than mining from scratch.
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Increased government and consumer spending on residential and infrastructure construction results from rapid urbanization
Metal recycling refers to reprocessing metal waste into new metal products to reduce greenhouse gas emissions, preserve natural resources, and manage energy usage. Governments in industrialized nations such as Canada, the United States, the United Kingdom, and others have made steps to support the metal recycling business by implementing efficient waste collection, separation, and sorting procedures. For example, the Canadian government has collaborated with provinces, territories, and businesses to promote the reuse and recycling of metal goods. This is anticipated to boost Canada's recycling business and its metal industry. An increase in urbanization, industrialization, and commodity consumption, along with the depletion of natural resources and reuse of these resources, has provided vast opportunities, driving the expansion of the worldwide metal recycling market. Market participants such as Nucor Corporation, Aurubis AG, and others engage in acquisitions and product launches as an effective strategy for product portfolio expansion in metal recycling. For instance, Aurubis AG purchased Belgian-Spanish metal recycling services provider Metallo Group in May 2019. The goal of the acquisition was to expand the product line of metal recycling services.
Demand growth for non-ferrous scrap in secondary manufacture
The growing demand for non-ferrous scrap in secondary production and end-use industries is expected to drive market expansion over the forecast period. Manufacturers have increased the output of electronics, automobiles, and other goods in response to rising customer demand. In addition, global industrialization has led to an increase in the demand for non-ferrous scrap. Non-ferrous metals, such as aluminium, copper, lead, nickel, and zinc can be recycled repeatedly without sacrificing their chemical or physical qualities. This capability increases the demand for non-ferrous scrap, collected from various end-use industries and processed at recycling centres. Regarding recycling these metals, raising societal awareness of the environment, economy, and energy savings are market growth drivers.
Fewer foreign steel is available
Due to lockdowns at production hubs, less imported steel is available than before the epidemic. Companies must rely on green steel, or steel made from recycled scrap metal, to meet their needs. Additionally, green steel benefits the environment by producing fewer carbon emissions and pollution. However, nations such as Japan are recycling E-waste such as Chips, motherboards, etc., and effectively reusing valuable metals such as Gold, Silver, and Copper. In the most recent Tokyo Olympics, champions were presented with metals produced from recycled gold, silver, and bronze.
Increased consumer demand
Manufacturers have increased the output of electronics, automobiles, and other goods in response to rising customer demand. In addition, global industrialization has led to an increase in the demand for non-ferrous scrap. As a result, there is a greater emphasis on its collection and recycling. European Aluminum, for instance, has unveiled its "Circular Aluminum Action Plan," which intends to realize the full potential of aluminium for a circular economy by 2030. Non-ferrous metals have a smaller volume share in the sector than ferrous metals but have a more significant value share. The high-income share is attributable to a higher market price for non-ferrous materials, another incentive to stress recycling to minimize production costs. The high price of these metals encourages customers to recycle. They receive a reasonable payment from non-ferrous scrap dealers for their old items, which are then used to extract metals such as aluminium and copper.
In 2021, the construction segment represented a greater than 38 % market revenue share. The collecting of non-ferrous scrap has been split into four industries: construction, automotive, consumer products, and industrial items. Copper from pipes and tubing, aluminium from window frames, shop fronts, curtain walling, door handles, and other structures, and zinc from roofing and galvanized steel goods are examples of the non-ferrous scrap gathered from the construction industry. Despite having the highest proportion, construction is expected to experience a slower growth rate than other industries due to the durability of non-ferrous materials and the extended lifespan of structures before they can be recycled. During the projection period, the sector is expected to dominate the market due to rising industrialization and infrastructure development, as well as the increased use of non-ferrous metals. Due to the increasing use of non-ferrous metals in household appliances and the growing consumer awareness of recycling, consumer products are predicted to experience the highest growth rate throughout the forecast period. Electronics and home appliances often have a short lifespan, and it is good to recycle them when they are beyond repair. Copper tubing found in appliances such as refrigerators, dishwashers, air conditioners, and dryers can be recycled.
Aluminium led the non-ferrous scrap recycling industry in 2021, holding over 48 % of the volume share. Increasing demand from the construction, automotive, and packaging industries for recycled aluminium has increased the market for its scrap. In India, the demand for recycled aluminium increased by 800 basis points during the past three years. The construction and automotive industries contribute the most to aluminium scrap, followed by the packaging industry. Seventy to 90 % of cans are processed in wealthy nations, while approximately 50 % are processed globally. Copper is among the priciest non-ferrous metals. It is widely used in construction and consumer products because it conducts electricity. It is used to construct pipes, electrical cables, and electrical components. Most electrical and household appliances include copper. A computer, for instance, comprises approximately 1.5 kg of copper. Approximately 50 % of copper used in infrastructure gets recycled. Lead is among the non-ferrous metals most frequently recycled. Recycled lead is an essential raw resource for manufacturing new lead products. The most significant lead application is batteries; their recovery rate is 100 %. According to the Battery Council International and EUROBAT, lead-acid batteries are the most recycled consumer product worldwide. Lead scrap is obtained primarily from car batteries and the building industry due to lead sheets.
In 2021, the Asia-Pacific region dominated the market and accounted for 45.4% of the total revenue. Regarding recycling, India is predicted to experience a substantial growth rate in the Asia-Pacific region over the projection period. The nation generates a substantial amount of non-ferrous metal scrap; however, a largely unorganized market and a lack of knowledge result in most of this material being sent to landfills rather than recycling centres. Whereas the average global recycling rate is approximately 45 %, India's recycling rate is only 25 %. The data demonstrate the market's enormous growth potential. The country produced 120 kilotonnes of aluminium scrap, with the automotive and energy industries being the most prominent suppliers.
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In 2021, North America represented a revenue share of over 20% of the worldwide market. The share and growth in the region are primarily related to the U.S. recycling industry. According to the Institute of Scrap Recycling Industries, Inc., non-ferrous scrap accounts for approximately 50 % of the total value of recycled materials in the United States. The nation is a significant importer and exporter of aluminium scrap and one of the world's leading manufacturers of secondary aluminium. In 2021, Europe held the second-largest market revenue share. The region's expansion results from technological advances in scrap generation and processing. For instance, Erdwich-Zerkleinerungs-Systems GmbH designed a plant for separating non-ferrous metals from heavy & light materials to recover all valuable elements.