By Research and Market (Thu, October 21, 2021)
The global market for Steel Scrap estimated at 574.5 Million Metric Tons in the year 2020, is projected to reach a revised size of 748.2 Million Metric Tons by 2026, growing at a CAGR of 4.5% over the analysis period.
Obsolete, one of the segments analyzed in the report, is projected to grow at a 5.3% CAGR to reach 438.5 Million Metric Tons by the end of the analysis period.
As the global reserves shrivel and the cost of extracting ore rises, scrap is expected to account for major portion of metal production in future. In the future, rising demand for raw materials used in steel making industry from rapidly expanding emerging markets such as China, India and Brazil is expected to fuel demand for steel scrap. The development of new lightweight products, bake hardenable grades, and high strength steels has allowed steel to withstand the challenge posed by a wide range of competitive materials.
After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Prompt segment is readjusted to a revised 3.4% CAGR for the next 7-year period. This segment currently accounts for a 26.3% share of the global Steel Scrap market. Obsolete scrap, or old scrap, represents the largest segment.
Obsolete scrap consists of any redundant steel product with no usage life and is generally collected when the products made from steel reach their end of life. Prompt scrap is obtained when steel products are being manufactured. This type of scrap consists of punchings, turnings, borings and cuttings.
The U.S. Market is Estimated at 52.3 Million Metric Tons in 2021, While China is Forecast to Reach 301.7 Million Metric Tons by 2026
The Steel Scrap market in the U.S. is estimated at 52.3 Million Metric Tons in the year 2021. The country currently accounts for a 8.78% share in the global market. China, the world’s second largest economy, is forecast to reach an estimated market size of 301.7 Million Metric Tons in the year 2026 trailing a CAGR of 5.7% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.7% and 3.2% respectively over the analysis period.
Within Europe, Germany is forecast to grow at approximately 2.6% CAGR while Rest of European market (as defined in the study) will reach 319.3 Million Metric Tons by the end of the analysis period. China represents a key producer of steel, driven by the Chinese government`s measures to improve the residential construction market by lowering share of down payments for home buyers.
Crude steel production in the US is expected to improve in the near term owing to the implementation of tariffs on steel imports and anti-dumping and countervailing duties, leading to increased production and better capacity utilization.
Home Segment to Reach 147.9 Million Metric Tons by 2026
Almost 75% of all the household appliances consist of steel. Steel is increasingly used in home furnishings from metal beds to robust home office equipment to dining tables and chairs. The toughness, corrosion resistance and flexibility of steel make it a perfect option for all the furnishings. Steel also makes its vital presence in architectural fine points such as room dividers, stairways, steel lamps, and steel tables.
Textured steel floors with a glossy, ultra-modern look generally withstand heavy traffic. In the global Home segment, USA, Canada, Japan, China and Europe will drive the 3.18% CAGR estimated for this segment. These regional markets accounting for a combined market size of 86.1 Million Metric Tons in the year 2020 will reach a projected size of 111.6 Million Metric Tons by the close of the analysis period.
China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach 24.6 Million Metric Tons by the year 2026, while Latin America will expand at a 3.8% CAGR through the analysis period.