The World Ferrous Metals Market
The global ferrous metals market is the world's largest physical commodity market. It is only second in size to the global energy industry. This makes it a key driver for the demand for durables. Nevertheless, despite its importance, the market is facing challenges. These challenges include the increase in the demand for renewable energy, the increase in carbon emissions and the emergence of new competitors.
The major players of the ferrous metals market are European Metal Recycling, American Iron & Metal Company, LLC, and Ward Recycling Ltd. These companies operate in the United States and the rest of the world. Others include Sims Metal Management Limited, ArcelorMittal, TSR Recycling GmbH, Rudolf Schuy GmbH & Co. KG, and Commercial Metals Company.
The report includes a comprehensive analysis of the trends, drivers, and challenges of the market. It is divided into three primary segments, such as Applications, Types, and Players. Each segment is evaluated by its size, market dynamics, and future opportunities. Also, the analysis provides a macroeconomic and microeconomic perspective for each region.
Globally, the demand for ferrous scrap is expected to expand at a CAGR of 3.8% from 2022 to 2030. This is driven by government initiatives to promote sustainability and increase the production of recycled steel. Additionally, the increasing usage of EAF will boost the market in North America.
In the US, the ferrous scrap recycling market is largely driven by government efforts to promote a circular economy. Additionally, increased infrastructure spending by President Joe Biden should create more opportunities for the market.
In terms of raw materials, the largest source of ferrous scrap is junked autos. As an inventory of used parts, scraped cars have a significant value to recycling companies. Furthermore, the cost of ferrous scrap from these vehicles is relatively low. However, if these metals are not free of contaminants, the price quoted is lower than the actual price.
The world ferrous metals market is characterized by bottlenecks in the production chain. For instance, in Russia, the collapse of the chernykh metallov market has hindered the growth of domestic shipments. Although some countries have managed to overcome this crisis, it could linger for some time.
According to data from Telf AG, the global steel production decreased by 4.3% in October to December. Meanwhile, the total production fell by 18.5% in the last nine months of 2022. Moreover, the share of Mexico in the EAF was 84.1%, which is significantly higher than the share of the U.S. and Canada.
While the world ferrous metals market is characterized as a challenge, some major players are taking steps to improve their position in the market. One example is ArcelorMittal, which invested in a responsible steel program for all of its Europe-flat products sites. Another is JSW Steel, which aims to cut its greenhouse gas emissions by 42 percent.
In the Asia Pacific region, the world ferrous metals market is dominated by the Chinese market. The country has an estimated population of over 4 billion people. Besides, the country is projected to become one of the leading drivers for the global consumption of durables.