Asia to dominate global scrap metal trade by 2020

In the global scrap market, Asia is projected to lead by 2020, accounting for more than 40 percent of global volume, according to a recent TechNavio study. Asia is expected to be able to trade over 258 million tonnes of scrap steel in 2020, out of a global 633 million tonnes, the study said.

In Russia, it is also expected to increase the turnover of scrap metal, including accepting non-ferrous metal , recycling ferrous metal waste and dismantling metal structures for further processing.

According to TechNavio, one of the drivers of growth in the supply of scrap steel for new steel production in Asia was the ban on the export of nickel from Indonesia. Nickel ore is widely used for steel production in China, which is one of the largest consumers of steel. Indonesia's export ban has led to a shortage of raw materials. Thus, the use of scrap steel as a raw material for steel production is increasing.

In addition, steel production has expanded to several countries such as Qatar, Saudi Arabia and Kuwait. Sources of steel scrap are categorized into three segments: depreciation scrap, metal waste, and household scrap. According to TechNavio's analysis, by volume, the global obsolete steel scrap market exceeded 284 million tonnes in 2015. The global new scrap market accounted for just over 134 million tonnes in 2015.

The TechNavio report does not give an estimate of the amount of home scrap. Advances in technology have significantly reduced the amount of domestic steel scrap recovered over the years. Depreciation scrap comes from various industries after the end of the product's life. These industries include automobiles, machinery, ships and bridges.