The steel scrap market has been forecast to reach 761 million tons by 2018, driven by demand from emerging markets, increasing adoption of Electric Arc Furnaces (EAF) and increasing use of recycled steel in the manufacture of steel.
According to a recent report, 'Steel Scrap: A Global Strategic Business Report,' steel scrap forms the most important raw material in the manufacture of steel. Household goods and old cars account for about 80-85% of scrap sourced worldwide.
As the majority of scrap steel is used in the production of new steel, trends and developments in the steel industry significantly influence demand dynamics in the steel scrap market. Global warming is one of the most important issues currently faced by the global steel industry.
Recycling of scrap significantly reduces CO2 emissions resulting in rising usage of recycled steel in the manufacturing of goods thus driving demand for steel scrap.
Developed countries such as the US, Europe, Japan and Canada are the major exporting countries while emerging markets such as China, Turkey and India are the major importing countries.
Steel scrap is primarily used in electric arc furnaces (EAFs) that are fast replacing traditional blast furnaces in steel manufacturing units around the world owing to benefits such as lower Greenhouse gas emissions and higher energy efficiency. In coming years, increased usage of electric arc furnaces in steel manufacturing facilities will significantly drive demand for steel scrap.
Asia-Pacific represents the largest as well as the fastest growing market worldwide with a projected compound annual growth rate (CAGR) of 7.3% through to 2018.
Despite demand for steel in two of the most important steel consuming countries of China and India growing at a relatively slower rate in 2012, implementation of robust infrastructure projects is expected to strengthen growth prospects in the next few years.
For more information on the steel scrap market, see the latest research: Steel Scrap Market Research
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