Steel scrap: Key market research findings
- Shifting trend towards EAF
- Growing dominance of obsolete segment
Technavio has released a new market research report on the global steel scrap market, which is expected to grow at a CAGR of 2% between 2016 and 2020. The rising need to preserve natural resources, especially iron ore, is expected to result in this market’s moderate growth rate during the forecast period. The Asian region dominates the global market for steel scrap, accounting for 40% of the total market share. The recent restriction on the export of nickel ore by the Indonesian government is a significant factor that impels market growth in this region during the forecast period.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Of late, the steel manufacturing process is witnessing considerable shift towards toward electric arc furnace (EAF). EAF uses 100% scrap as a feedstock for steel, hence minimises the energy required to make steel from iron ores. Also, EAF is flexible in terms of production variation, as it can be stopped and restarted according to requirement,” says Chandrakumar BJG, Lead Analyst, Chemicals & Materials, Technavio Research
The obsolete segment is the largest revenue-contributing segment of steel scrap market, accounting for a market share of nearly 49%. This segment consists of industrial sectors like automobiles, appliances, ships, and bridges. The growing need to properly dispose of all the waste materials generated by these industrial segments is envisaged to account for its high market share during the forecast period.
The key players in the global steel scrap market are AK Steel, ArcelorMittal, Baosteel Group, Nucor, and OmniSource. The steel scrap industry is similar to a pyramid structure, where most of the companies are located in the supplier’s segment. The competitive environment in this market is expected to intensify with an increase in scrap usage innovations and M&A in the coming years. The key players in this market are expected to diversify their geographical presence with a focus on APAC during the forecast period.
A more detailed analysis is available in the Technavio report, Global Steel Scrap Market Outlook 2016-2020.
We can customize reports by other regions and specific segments upon request.
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