Ferrous Metal Recycling Market Report 2026

The ferrous metal recycling market size has grown strongly in recent years. It will grow from $245.04 billion in 2025 to $260.81 billion in 2026 at a compound annual growth rate (CAGR) of 6.4%. The growth in the historic period can be attributed to rising demand for recycled steel in construction, growth of automotive manufacturing using recycled metals, increasing industrial scrap availability, early adoption of pyrometallurgical and physical processing methods, development of stainless steel and alloy recycling processes.

The ferrous metal recycling market size is expected to see strong growth in the next few years. It will grow to $331.1 billion in 2030 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be attributed to expansion of green building and sustainable construction projects, rising use of recycled ferrous metals in automotive and shipbuilding, advancements in chemical processing technologies, increasing focus on energy-efficient recycling, growth in ferroalloys and specialty ferrous alloy demand. Major trends in the forecast period include increasing adoption of advanced sorting technologies, growing use of automated scrap handling systems, expansion of energy-efficient recycling processes, rising implementation of waste-to-resource initiatives, enhancement of environmental compliance standards.

The growing adoption of electric vehicles is anticipated to drive the expansion of the ferrous metal recycling market. Electric vehicles (EVs) are powered wholly or partially by electricity stored in rechargeable batteries, as opposed to internal combustion engines that rely on fossil fuels. Their increasing adoption is largely driven by environmental concerns, as EVs emit no tailpipe emissions and contribute to reduced air pollution and greenhouse gas emissions. Ferrous metal recycling supports the production and sustainability of electric vehicles by providing essential materials and minimizing environmental impact. Recycled metals offer sustainable and cost-effective raw materials that support circular economy practices in battery and vehicle manufacturing. For example, in April 2024, the International Energy Agency reported that global electric car sales in 2023 approached 14 million, representing 18% of total car sales, up from 14% in 2022. As a result, the growing popularity of electric vehicles is boosting the ferrous metal recycling market.

Major companies operating in the ferrous metal recycling market are concentrating on developing innovative solutions, such as AI-powered platforms, to improve operational efficiency, enhance scrap identification and processing accuracy, streamline supply chain management, and ensure compliance with evolving sustainability standards. An AI-powered platform refers to a digital system, application, or software solution that leverages artificial intelligence technologies, including machine learning, deep learning, natural language processing, computer vision, and automation, to perform tasks, make decisions, analyze data, or deliver services with minimal human involvement. For example, in January 2025, Attero Recycling Private Limited, an India-based cleantech and recycling company, introduced MetalMandi, an AI-powered digital platform aimed at transforming the metal scrap market by offering real-time scrap price updates, secure payment mechanisms, and integrated logistics support for dealers and businesses. Key features of MetalMandi include a dynamic AI-driven pricing engine that evaluates market trends and material composition data multiple times daily to provide competitive quotes, image-based AI scrap identification to simplify the listing process, round-the-clock support, and zero transaction fees, enabling smooth and transparent transactions across various scrap categories, including ferrous metals, thereby helping to formalize a traditionally unorganized industry and advance circular economy goals. The platform supports efficient scrap collection and trading across India, serving both small-scale dealers and large enterprises, and is designed to manage substantial daily volumes with a projected high annual turnover.

In August 2023, Sims Limited, an Australia-based provider of metal recycling services encompassing the purchasing, processing, and sale of recycled ferrous and non-ferrous metals worldwide, acquired Baltimore Scrap Corp for US $177 million, along with working capital and other adjustments. Through this acquisition, Sims Metal sought to strengthen its footprint in the North American metal recycling market by adding strategically positioned facilities and logistics infrastructure to meet rising domestic demand and expand its sales channels. Baltimore Scrap Corp is a US-based metal recycling operator with 17 facilities across five states, offering shredding services and extensive rail, barge, and port infrastructure for the processing and distribution of scrap metal.

Major companies operating in the ferrous metal recycling market report are ArcelorMittal S.A., Nucor Corporation, Gerdau S.A., Commercial Metals Company, Sims Metal Management Limited, Schnitzer Steel Industries Inc., Alter Trading Corporation's, Real Alloy Holding LLC, PSC Metals LLC, American Iron And Metal Co (AIM), SA Recycling LLC, Metalico Inc., OmniSource LLC, David J. Joseph Co. (DJJ), Kuusakoski Oy, Upstate Shredding LLC, Sadoff Iron & Metal Company, Ferrous Processing And Trading Co. (FPT), AMG Resources Corporation, TSR Recycling GmbH And Co. KG.

Asia-Pacific was the largest region in the ferrous metal recycling market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the ferrous metal recycling market are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the ferrous metal recycling market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The ferrous metal recycling market includes revenues earned by entities through collection and sorting services, processing and shredding, smelting and refining, scrap metal trading and brokerage, and logistics and transportation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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