Global steel scrap market volume to hit $633 Million metric tons by 2020

SPOKANE (Scrap Monster): The latest research report published by Technavio forecasts global steel scrap market to reach over $633 Million metric tons by 2020. Also, the market will be dominated by Asia with volumes likely to surpass 258 million metric tons.

The research report titled ‘Global Steel Scrap Market 2016-2020’ provides detailed and in-depth analysis of emerging market trends on global steel scrap sector. It also includes analysis and forecasts of various market segments by region.

According to the report, use of steel scrap as steelmaking raw material is likely to increase. China, the largest scrap consumer, has been using nickel ore for producing steel. However, the Indonesian ban on mineral exports has led to tight shortage of nickel ore, forcing many steel companies to switch to steel scrap as an alternative. The rising steel production volumes from other countries such as Qatar, Saudi Arabia and Kuwait too have contributed to steel scrap volume growth.

The presence of contaminants lowers the quality of scrap and makes it difficult for separation. However, plants have developed the ability to dilute residues and derive better quality from these lower grade steel scrap. Such advances in processing have led to an increase in the use of lower quality grades, thus driving the growth of the global steel scrap market.

Technavio report notes that global obsolete steel scrap market accounted for over 284 million metric tons in 2015. Also, technological advances have reduced the amount of home steel scrap generated within steelmaking mills and foundries. Further, industrial scrap accounted for approximately 134 million metric tons in 2015.

Technavio is a leading market research company with global coverage. Founded in 2003 and headquartered in London, UK, Technavio has offices across North America, Europe, and Asia. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.