South America Metal Recycling Market Outlook, 2030

The South American metal recycling market has grown into a vital part of the region’s industrial base, particularly in Brazil, Argentina, and Chile, where scrap recovery and reuse are tightly linked to construction, automotive, and packaging industries. Recycling here is defined as the collection and processing of obsolete products such as vehicles, appliances, cans, and industrial machinery into secondary raw materials that re-enter manufacturing supply chains. Brazil’s experience illustrates this evolution during the 1990s, Gerdau, one of the largest steel producers in Latin America, expanded electric arc furnace operations that rely heavily on ferrous scrap, creating a steady market for recycled steel.

Aluminum recycling also became deeply rooted, with Novelis Brazil and the Brazilian Aluminum Association developing a closed-loop system for beverage cans that achieves recovery rates above 95%, the highest globally. Scrap collection occurs through both formal companies and informal networks of “catadores” (waste pickers) who play a critical role in gathering cans, steel, and copper wiring from urban areas, later sold to processors for shredding and sorting. Separation technologies range from magnetic sorting for ferrous scrap to manual disassembly of appliances and eddy current systems for aluminum at larger plants.

Smelting and refining are carried out in facilities such as Companhia Siderúrgica Nacional (CSN) in Brazil and Ternium in Argentina, where scrap is remelted into billets and rolled into new construction materials. Recycling delivers clear environmental benefits in a continent rich in mineral resources but heavily reliant on exports, by reusing scrap, South America conserves iron ore, bauxite, and copper while cutting energy use by more than half compared to primary extraction. Government policies, such as Brazil’s National Solid Waste Policy, promote circular practices and safety compliance, aligning with global standards like ISO 14001 and ISRI guidelines, ensuring South American recyclers meet international quality and environmental benchmarks.

According to the research report "South America Metal Recycling Market Outlook, 2030,", the South America Metal Recycling market is expected to reach a market size of more than USD 366.60 Billion by 2030. Gerdau operates over 40 recycling facilities across the region, sourcing scrap for its electric arc furnaces, while CSN uses recycled steel for rebar and structural products in infrastructure projects. Novelis Brazil dominates aluminum recycling, supplying automotive sheet for Fiat and Volkswagen in São Paulo as well as foil and can stock for packaging.

Construction remains the largest consumer, with recycled steel used in high-rise buildings and roadworks across Brazil and Argentina, while automotive manufacturers increasingly incorporate recycled aluminum to reduce weight and meet emission goals. Electronics and appliance recycling is emerging as a significant sector, with companies like Umicore working in Chile to recover gold, silver, and copper from discarded devices, while informal dismantling remains widespread in Peru and Colombia. Packaging continues to be a standout success, as Brazil’s aluminum can recycling loop is considered a global benchmark in efficiency.

Renewable energy also adds to demand, with recycled steel used in wind turbine towers in Brazil’s northeast and copper wiring feeding solar projects in Chile’s Atacama Desert. Scrap flows include both prompt industrial offcuts from steel mills and automotive factories and obsolete scrap from end-of-life vehicles, appliances, and infrastructure demolitions. Export activity is significant, with Brazil shipping ferrous scrap to Turkey and Asia, though much of the material is retained domestically to support local industries.

Market Drivers

• Strong Role of the Steel Industry: Brazil, Argentina, and Chile have large and growing steel industries that depend heavily on scrap as a raw material. Companies like Gerdau integrate recycling directly into their production process, using electric arc furnaces to melt down ferrous scrap from construction, automotive, and industrial sectors. This industrial structure makes scrap metal recycling a key part of South America’s steel supply chain, driving steady demand for recycled inputs.
• High Recycling Culture in Aluminum Packaging: South America, especially Brazil, has one of the highest aluminum can recycling rates worldwide. Efficient collection systems, consumer participation, and strong industry engagement ensure nearly all cans are collected and remelted into new products. This closed-loop recycling system not only supports the aluminum industry but also establishes a broader recycling culture that benefits other non-ferrous metals as well.

Market Challenges

• Heavy Dependence on Informal Sector: A significant portion of South America’s scrap collection relies on informal workers who gather cans, appliances, and vehicle parts. While this ensures high collection rates, it also creates issues with safety, efficiency, and traceability. Informal networks often lack access to advanced technologies, leading to contamination and loss of valuable metals during processing.
• Limited Investment in Advanced Facilities: Although there are major recycling players, much of the region still lacks state-of-the-art sorting and refining facilities. High capital costs, weak policy support in some countries, and infrastructure bottlenecks prevent recyclers from adopting modern technologies like automated shredders or advanced smelters. This slows down efficiency and limits the ability to handle complex waste streams such as e-waste.

Market Trends

• Expansion of Scrap Exports: South American countries, particularly Brazil, are increasingly exporting ferrous scrap to international markets. With growing demand for steel in Asia and elsewhere, exports provide a profitable outlet for recyclers. Ports in Brazil and Argentina are becoming important hubs for this trade, integrating the region into global recycling flows.
• Rising Focus on E-waste Recycling: South America is generating increasing volumes of discarded electronics, from smartphones to household appliances. Governments and private firms are beginning to establish more organized e-waste collection programs, recognizing the value of recovering copper, aluminum, and precious metals from these devices. This trend is creating new opportunities for diversification within the recycling sector.Non-ferrous metals are the fastest in South America because of the region’s strong aluminum, copper, and lead recycling activities driven by packaging, automotive, and battery industries.

South America has become a hotspot for the rapid expansion of non-ferrous metal recycling because these materials are central to industries that are deeply established in the region and because they carry high economic value. Aluminum recycling is particularly strong in Brazil, which is recognized globally for its leadership in beverage can collection and recycling, with recovery rates that are among the highest in the world thanks to efficient systems and strong consumer participation. Copper recycling is equally important, especially in countries like Chile and Peru, which are the world’s largest producers of mined copper but also recycle significant amounts to meet demand from domestic electrical infrastructure and export markets.

Lead recycling plays a critical role in the region, where millions of lead-acid batteries from vehicles and industrial uses are collected and reprocessed, reducing reliance on imported raw materials and supporting the large automotive markets in Brazil, Argentina, and Colombia. The economic incentive to recycle non-ferrous metals is very strong, as they are more valuable than ferrous metals on a per-ton basis, and even small-scale collectors and informal workers can profit from gathering and selling aluminum cans, copper wiring, or scrap from old electronics.

Urban mining of appliances and discarded electronics adds another growing stream of non-ferrous recovery, as these items contain copper, aluminum, and small amounts of precious metals that recyclers are increasingly targeting. With the growth of renewable energy projects and electric vehicles in the region, the need for copper and aluminum has increased further, creating pressure to recover more from scrap.

Building and construction dominate South America’s recycling market because infrastructure development and urban renewal generate vast quantities of steel, aluminum, and copper scrap.

The building and construction sector is the largest driver of metal recycling in South America because the region’s cities are constantly expanding and renewing, creating a continuous cycle of scrap generation and reuse. Brazil, Argentina, Chile, and Colombia have invested heavily in new housing, transport networks, and industrial zones, while at the same time older infrastructure is being dismantled, producing huge volumes of ferrous scrap and non-ferrous materials such as copper wiring and aluminum frames. Steel rebar and beams recovered from demolished buildings and bridges are reprocessed and reintroduced into new construction projects, reducing costs for developers and lowering dependence on imported raw materials.

Copper piping and wiring stripped from old houses and factories feed into recycling streams, while aluminum from window frames, roofing, and siding adds to the supply. Urban renewal projects in cities like São Paulo, Buenos Aires, and Santiago are particularly significant, as they generate a steady stream of demolition scrap while creating immediate demand for recycled material in replacement structures. Infrastructure expansion, including road networks, ports, airports, and hydroelectric plants, also provides bulk flows of recyclable metal both during construction and in later refurbishment cycles.

South America’s construction industry has long depended on recycled metals because they offer cost efficiency and availability in a region where raw material extraction is strong but often reserved for export markets. In many urban areas, informal collectors play a key role by salvaging scrap metal from demolition sites and construction debris, feeding it back into formal recycling facilities.

Obsolete scrap is the fastest in South America because of the increasing number of end-of-life vehicles, appliances, and infrastructure being retired and fed into recycling streams.

South America’s recycling market is increasingly driven by obsolete scrap, which has become the fastest-growing source of material as more vehicles, buildings, and consumer goods reach the end of their useful lives. In Brazil and Argentina, large automotive markets are seeing rising volumes of end-of-life cars and trucks, each providing significant amounts of steel, aluminum, and copper when dismantled. Household appliances such as refrigerators, washing machines, and stoves are being replaced at a growing rate as incomes rise and consumers upgrade to more efficient models, creating a stream of mixed metal scrap that recyclers are capturing more effectively.

Urban renewal projects in major cities contribute further, as old buildings are demolished to make way for modern high-rise apartments and commercial centers, releasing huge volumes of ferrous and non-ferrous metals for recycling. In addition, infrastructure such as bridges, power plants, and rail systems that were built decades ago are now being refurbished or replaced, adding long-life capital scrap to the mix. Informal networks of scrap collectors play an essential role in capturing obsolete materials from households and demolition sites, feeding them into regional recycling facilities.

The growing importance of electronics and consumer goods has also made e-waste a fast-rising contributor, with copper, aluminum, and small amounts of precious metals being recovered from discarded phones, computers, and appliances. The pace at which goods and infrastructure are aging in South America, combined with the cultural and economic importance of scrap collection, ensures that obsolete scrap is expanding more rapidly than any other category. Brazil leads the South American metal recycling market because of its dominant steel industry, abundant scrap generation, and established recycling infrastructure.

Brazil holds a leading position in South American metal recycling because of its powerful steel sector, vast domestic consumption of metals, and organized recycling networks. The country is home to Gerdau, one of the largest steel producers in the Americas, which operates multiple electric arc furnaces that rely heavily on scrap as feedstock. Brazil’s large population and industrial base generate significant scrap streams, with automobiles, appliances, and construction materials being major contributors. End-of-life vehicles are dismantled and recycled in growing numbers, while urban renewal and infrastructure projects create consistent flows of ferrous and non-ferrous scrap.

Brazil’s long-established steel industry integrates recycling directly into production, reducing dependence on raw iron ore and ensuring metals remain in circulation. A robust network of scrap yards and collection centers, supported by informal collectors, ensures that even small amounts of scrap find their way into the recycling stream. Aluminum recycling is also prominent, with Brazil recognized as one of the world’s leaders in beverage can recycling, reflecting strong consumer participation and efficient collection systems. The government has supported recycling through extended producer responsibility initiatives and legislation aimed at diverting waste from landfills.

Brazil’s ports and logistics network allow for both domestic processing and export of surplus scrap to other regions, integrating the country into global recycling flows. Cultural awareness about recycling and industry investment in modern facilities further strengthen the country’s role. With its dominant steel industry, high scrap generation from multiple sources, organized infrastructure, and international connectivity, Brazil is firmly at the forefront of South America’s metal recycling market.

***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.