+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

PRINTER FRIENDLY

Steel Scrap - Global Market Trajectory & Analytics

  • ID: 1382319
  • Report
  • April 2021
  • Region: Global
  • Global Industry Analysts, Inc

FEATURED COMPANIES

  • ArcelorMittal S.A.
  • Commercial Metals Company
  • Evraz Group
  • Gerdau Group
  • Metalico, Inc.
  • Nucor Corporation
  • MORE
Downturn in Global Demand from Manufacturers Sends Steel Scrap Consumption Reeling Under a 26 Ton Blow

Global Steel Scrap consumption is expected to slump by -4.2% in the year 2020 highlighting a 25.5 million ton erosion in consumption. Thereafter the market is expected to recover and reach 756 Million tons by the year 2027 trailing a post pandemic CAGR of 4.1% over the analysis period 2020 to 2027.Steel manufacturers, especially those dependent on orders coming from the construction, automotive, and aerospace sectors are witnessing significant disruptions in business opportunities. It is already well understood that the COVID-19 crisis will result in shrinkage of capital resources; workforce layoffs/reduction and loss in productivity; supply chain disruptions; difficulties with funding. The slower economic activity means reduced demand for construction materials, automotive, machinery and appliances, and overall lower manufacturing orders. Plant closures both full and partial are expected to continue into the coming months. The likely massive decline in construction spending worldwide paints a grimmer picture for steel industry. With consumers not seen as likely to spend on new homes anytime soon, construction demand will decline impacting profitability and revenues of steel manufacturers. With the automotive industry collapsing under the lockdowns and government curbs, automotive manufacturing is set to receive the worst ever setback sending knock-on effects across the upstream supply chain. Without government intervention and financial support, several automotive companies in developed and developing countries are expected to file for bankruptcies. Furthermore, enterprise spending on machinery and equipment will remain sluggish in the near term. As capital and corporate cost budgets are revised based on dwindling new orders and, falling plant capacity utilization rates, spending on plant upgrades will be delayed. Asset strategies, for instance, will be impacted as budgets for equipment upgrades and new equipment purchases will be either repurposed or cancelled to manage the financial pressure posed by the current economic climate, while reducing the overall demand for machinery and equipment, thus putting further pressure on steel companies catering to these segments. The overall scenario for the steel scrap market remains largely lackluster in the short-term. Social distancing norms are being strictly implemented with steel firms under pressure to reduce worker density in factories. This will require proactive investments in automation technologies such as collaborative robotics, 3D manufacturing, autonomous materials movement, and industrial internet of things (IIoT). However, access to financial resources and maintaining cash-flow liquidity will remain key challenges for steel firms during this period.

In the post COVID-19 period, growth will come from renewed focus on shed on migration towards steelmaking technologies that rely heavily on steel scrap such as Electric Arc Furnaces (EAF) and blast oxygen furnaces (BOFs). The market will richly benefit from recovering investments in scrap metal extraction equipment; development of recycling technologies that offer higher recycled yield; and growth in digitization across the supply chain which enables flexible material flow and improved efficiency of inventory management. Asia-Pacific will remain a major market driven by post COVID-19 increase in demand for steel produced by sustainable practices; and enforcement of tighter environmental regulations that exert pressure on manufacturers to reduce emissions. With countries such as China and India reaching advanced stages of industrialization, availability of post-consumer scrap willincrease and create an environmental burden that requires sustainable resolution. The focus in these countries will therefore shifting towards steel reuse and reduction of CO2 footprint of the domestic steelmaking industries. In China specifically, rapid Increase in the number of end-of-life vehicles (ELV) in countries such as China will pushup the volume of steel scrap and also the pressure on OEMs to use recycled steel scrap in automobile production. Strict CO2 emission norms for manufacturing industries worldwide will drive focus on converting metal scrap into vital secondary raw material. In addition, innovation in metal extraction technologies and processes will benefit market growth further.

Select Competitors (Total 51 Featured):
  • ArcelorMittal S.A.
  • Baosteel Resources Co., Ltd
  • Commercial Metals Company
  • Evraz Group
  • Gerdau Group
  • Maanshan Iron & Steel Company Limited
  • Metalico, Inc.
  • Nucor Corporation
  • Oryx Stainless Group
  • Schnitzer Steel Industries, Inc.
  • Sims Metal Management Limited
  • Steel Dynamics, Inc.
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • ArcelorMittal S.A.
  • Commercial Metals Company
  • Evraz Group
  • Gerdau Group
  • Metalico, Inc.
  • Nucor Corporation
  • MORE
I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • Influencer Market Insights
  • World Market Trajectories
  • Crushing Impact of Ongoing COVID-19 Pandemic on World Steel Industry Set to Hamper the Prospects for Steel Scrap Market in 2020
  • Supply Chain Disruptions Due to COVID-19 Crisis Curtail Steel Scrap Consumption Volumes
  • Prevailing Weak Global Economic Environment & Negative Tide in GDP Forecasts Strongly Discourage Steel Scrap Market
  • Exhibit 1: World Economic Growth Projections (Real GDP, annual % Change) for 2019, 2020 & 2021
  • Exhibit 2: Business Confidence Index (BCI) Points for 3Q 2019, 4Q 2019, 1Q 2020, & 2Q 2020
  • Despite Short-Term Negative Tide Due to COVID-19 Crisis, Steel Scrap Market Poised to Prosper in the Long-Term
  • Benefits of Scrap Steel Vs. Iron Ore in Steel Production (in %)
  • Steel Recovery Rates of Various Industries
  • Recent Market Activity
  • Critical Importance of Steel in Every Aspect of Human Life to Sustain Momentum in the Steel Scrap Market in the Post COVID-19 Period
  • A Snapshot of Steel End-Use Sectors
  • Steel Production Prospers in 2017-2019 Period
  • Exhibit 3: World Crude Steel Production (2012-2019) in Million Tons
  • Exports Scenario Dominated by China
  • Exhibit 4: Leading Steel Exporting Countries (2019): Exports (in Million Metric Tons) for China, Japan, South Korea, Russia, EU-28, Germany, Turkey, Italy, Belgium, Ukraine, France, India, Brazil, Taiwan, and Netherlands
  • EU Remains the Top Steel Importer
  • Exhibit 5: Leading Steel Importing Countries (2019): Imports (in Million Metric Tons) for EU (28), United States, Germany, Italy, Thailand, South Korea, China, Vietnam, France, Indonesia, Mexico, Belgium, Turkey, Poland, and Spain
  • Analysis by Scrap Type
  • Steel Scrap Trade Scenario
  • Exhibit 6: Leading Volume Importers (Million Metric Tons) of Ferrous Scrap (2019)
  • Exhibit 7: Leading Volume Exporters (Million Metric Tons) of Ferrous Scrap (2019)
2. FOCUS ON SELECT PLAYERS
  • SELECT BRANDS
3. MARKET TRENDS & DRIVERS
  • Anticipated Post COVID-19 Resurgence in the World Construction Sector to Renew Steel Demand, Triggering Parallel Momentum in Steel Scrap Market
  • Exhibit 8: World Construction Industry (in US$ Trillion) for the Years 2017, 2019 & 2022
  • Revival of Automotive Industry in Post COVID-19 Period to Instigate Fresh Growth Opportunities
  • Exhibit 9: World Automobile Production in Million Units: 2008-2022
  • Relevance of Steel in Household Appliances & Metal Goods Domains to Underpin Steel Scrap Demand in Upcoming Years
  • High Volume Opportunities to Re-Emerge in Shipping Sector in Post COVID-19 Environment
  • Pivotal Role of Steel in Machinery Manufacturing Augurs Well for Future Growth
  • Steel Scrap Recycling to Grow in Prominence amid Rising Emphasis on Reducing CO2 Emissions
  • Evolving Role of Electric Arc Furnace in Steel Making to Drive Scrap Demand
  • Exhibit 10: Global Production of Crude Steel (2019): Percentage Breakdown by Method of Production by Select Region
  • Exhibit 11: Steel Production by Manufacturing Process in Select Countries (2019)
  • Technology Advancements in Scrap Extraction & Processing Equipment Bode Well
  • Digitization Comes to the Fore to Reinforce Steel Scrap Ecosystem
  • A Note on Steel Scrap Pricing Trends
  • Key Issues Confronting the Future Growth of Steel Scrap Market
  • Growing Prominence of Alternative Metals in Steel Recycling
  • Export Restrictions on Steel Scrap
  • Reduced Usage of Steel in Automobiles to Affect the Steel Scrap Market
  • Steel Scrap: An Introduction
  • Grades of Steel Scrap
  • Steel Scrap Sorting & Preparation Methods
  • Steel Scrap Recycling
4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS
  • UNITED STATES
  • Market Overview
  • Exhibit 12: US Apparent Steel Consumption in Million Metric Tons (2013-2019)
  • Exhibit 13: US Crude Steel Market (2019): Percentage Breakdown of Volume Production by Type of Process - Electric Furnace and Oxygen Blown Converter
  • Factors Impacting Steel Scrap Prices
  • Exhibit 14: US Iron and Steel Scrap Price Trends 2012-2020
  • Scrap Export Scenario
  • Exhibit 15: US Iron & Steel Scrap Exports 2010-2020 (In Million Tons)
  • CANADA
  • JAPAN
  • CHINA
  • China Redirects Focus on Restructuring its Steel Industry
  • Steel Scrap Market
  • Scrap Recycling: Industry Structure
  • China’s Move to Alienate from Global Scrap Market Leaves Local Steel Manufacturers with Thin Margins
  • Steel Scrap Prices Set to Experience Downward Trend
  • EUROPE
  • Market Overview
  • Exhibit 16: Europe Crude Steel Production by Select Country (2020): Percentage Share Breakdown of Steel Production by Process
  • European Safety Regulations for Handling of Steel Scrap
  • FRANCE
  • GERMANY
  • ITALY
  • UNITED KINGDOM
  • SPAIN
  • RUSSIA
  • TURKEY
  • REST OF EUROPE
  • ASIA-PACIFIC
  • INDIA
  • SOUTH KOREA
  • REST OF ASIA-PACIFIC
  • LATIN AMERICA
  • BRAZIL
  • REST OF LATIN AMERICA
  • REST OF WORLD
IV. COMPETITION
  • Total Companies Profiled: 51
Note: Product cover images may vary from those shown
  • ArcelorMittal S.A.
  • Baosteel Resources Co. Ltd
  • Commercial Metals Company
  • Evraz Group
  • Gerdau Group
  • Maanshan Iron & Steel Company Limited
  • Metalico, Inc.
  • Nucor Corporation
  • Oryx Stainless Group
  • Schnitzer Steel Industries, Inc.
  • Sims Metal Management Limited
  • Steel Dynamics, Inc.
Note: Product cover images may vary from those shown
Adroll
adroll