Global Steel Scrap Market to Reach USD 145 Billion by 2035; Ferrous Scrap and Industrial Recycling Drive Growth, Reports FactMR

The global steel scrap market is poised for significant growth over the next decade, fueled by rising demand for sustainable steel production, cost-effective raw materials, and adoption of circular economy practices. According to FactMR, the market is valued at USD 88.0 billion in 2025 and is projected to reach USD 145.0 billion by 2035, expanding at a compound annual growth rate (CAGR) of 5.1%.

The FactMR report, “Steel Scrap Market Size, Share, and Forecast 2025–2035,” highlights a total market increase of USD 57 billion over the decade, driven by industrial, municipal, and construction applications. Ferrous scrap dominates the market with a 70% share, reflecting its superior melting properties, cost efficiency, and compatibility across steel manufacturing processes. Industrial scrap contributes to half of the total demand, reflecting growing adoption in manufacturing and heavy industries.

Decade of Growth Anchored by Sustainable Practices and Recycling

Between 2025 and 2030, the steel scrap market is projected to grow from USD 88.0 billion to USD 113.4 billion, adding USD 25.4 billion in market value—nearly 45% of the total forecast growth. This phase is driven by increasing adoption of ferrous scrap systems, expansion of industrial recycling solutions, and investment in advanced sorting and processing technologies. Manufacturers are optimizing scrap usage to reduce dependence on raw iron ore and cut production costs while meeting sustainability targets.

From 2030 to 2035, the market is expected to increase by USD 31.6 billion, reaching USD 145.0 billion. This period will see the expansion of municipal recycling initiatives, development of specialized scrap grades, and adoption of innovative processing technologies that enhance material quality and production compatibility. Advanced recycling formulations are set to drive higher efficiency, reduced environmental impact, and increased integration into modern steel production systems.

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Key Drivers of Market Expansion

1. Sustainable Steel Production:Growing global emphasis on carbon reduction and circular economy practices supports scrap adoption.
2. Cost Optimization:Scrap offers an economical alternative to traditional raw materials, enhancing manufacturing profitability.
3. Technological Advancements:Advanced sorting, collection, and processing technologies increase material quality and production efficiency.
4. Industrial Demand:Ferrous scrap applications across automotive, construction, and heavy manufacturing drive steady growth.
5. Municipal Recycling Expansion:Growing collection and processing of urban scrap materials contribute to overall market value.

Segment Insights

• By Type:Ferrous scrap leads with 70% of the market, followed by non-ferrous variants.
• By Source:Industrial scrap accounts for 50% of demand, with municipal recycling and specialty applications providing additional growth opportunities.
• By Region:Europe, Asia-Pacific, and North America are the primary growth regions, with Asia-Pacific emerging as the fastest-growing market due to rising steel production in China, India, and Southeast Asia.

“Steel scrap is no longer viewed merely as a byproduct,” said a FactMR analyst. “It has become a strategic raw material enabling cost savings, sustainability, and enhanced operational efficiency in modern steel production.”

Competitive Landscape

Leading market participants include Nucor, ArcelorMittal, JSW Steel, Steel Dynamics, Gerdau, Thyssenkrupp, China Baowu, and POSCO. These companies are increasingly investing in scrap collection, processing, and specialized sorting technologies to secure raw material supply, improve recycling efficiency, and meet stringent quality standards. Strategic partnerships with municipal and industrial scrap collectors are emerging as a key growth strategy.

Market Outlook: Driving Sustainability and Efficiency

Over the next decade, the steel scrap market will evolve as steel manufacturers prioritize sustainable production, cost reduction, and material efficiency. Innovations in scrap processing, integration with advanced steelmaking technologies, and expansion of recycling networks are expected to define market leadership.

“Steel scrap represents a critical enabler of the future steel ecosystem,” the FactMR analyst added. “Companies that innovate in scrap processing, sustainability practices, and integration with industrial steel production will capture the next wave of growth globally.”

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About Fact.MR

Fact.MR is a global market research and consulting firm, trusted by Fortune 500 companies and emerging businesses for reliable insights and strategic intelligence. With a presence across the U.S., UK, India, and Dubai, we deliver data-driven research and tailored consulting solutions across 30+ industries and 1,000+ markets. Backed by deep expertise and advanced analytics, Fact.MR helps organizations uncover opportunities, reduce risks, and make informed decisions for sustainable growth.