Global steel scrap market to reach 633 million tonnes by 2020

The latest report, published based on research from TechNavio, predicts that the global steel scrap market will reach over 633 million tonnes by 2020. In addition, the market will be dominated in Asia with volumes exceeding 258 million tonnes.

The report titled "Global Steel Scrap Market 2016-2020" provides a detailed and detailed analysis of the trends in the steel scrap market at the global level. It also includes analysis and forecasting in various market segments by region.

According to the report, the use of steel scrap as a steel raw material will increase in the near future. China, the largest consumer of scrap metal, also uses nickel ore to make steel. However, Indonesia's ban on the export of minerals has led to severe shortages of nickel ore, forcing many metallurgical companies to switch to using scrap as an alternative. Rising steel production in other countries such as Qatar, Saudi Arabia and Kuwait also contributed to the growth in scrap steel use.

The presence of harmful substances reduces the quality of the scrap and makes it difficult to separate it. However, businesses have developed the ability to recycle residues and obtain good quality from these inferior grades of scrap steel. Such advances in processing have led to an increase in the use of low-quality scrap, thus driving the growth of the global scrap market.

The TechNavio report notes that the global market for old steel scrap was over 284 million tonnes in 2015. In addition, technological advances have reduced the amount of domestic steel scrap used in steel mills and foundries. At the same time, industrial scrap accounted for approximately 134 million tons in 2015.