Substantial growth and increased aquisitions in the metal recycling market have been forecasted in a new report.
‘Metal Recycling Market – Forecast to 2020’ projects that the market size will grow from £183bn ($277bn) in 2015 to reach £268bn ($406.16bn) by 2020, at an estimated compound annual growth rate of 7.95%.
Increasing income and spending capacity of people in developing economies and rising demand in sectors such as construction, electronics, health care equipment, automotive, and packaging are all listed in the report as major factors driving the growth.
The report by Research and Markets also found that many major firms were planning to increase acquisition and divestiture.
It said companies including Sims Metal Management had adopted this strategy to increase the reach of their offerings, improve their production capacity, and focus more on core operations.
It also found the largest amount of recycled metal in 2014 is projected to be used in the construction sector.
“With the implementation of regulations such as extender producer responsibility, recycling of end-of-life vehicles, and WEEE guidelines, the use of recycled metal in the automotive and equipment manufacturing industry is also projected to occupy a large share,” the report says.
UK firm European Metal Recycling is profiled in the report as well as other major global firms Sims and Tata Steel.
Research involved using databases such as Bloomberg Business and Factiva as well as interviews with industry experts including manufacturers, distributors and recycling associations.
ArcelorMittal, Nucor Corporation, Commercial Metals Company, Aurubis AG, Dowa Holdings, Baosteel Group Corporation, and Remondis SE & Co. KG. were also interviewed.
As reported by MRW, Sims is in the process of closing its underperforming UK facilities due to falling commodity prices.
SSI liquidated its Redcar plant and put 2,100 people out of work also in October while Tata Steel’s Long Products Europe division confirmed an end to production of steel plate and the loss of 1,200 jobs, including 900 at Scunthorpe and 270 in Dalzell and Clydebridge in Scotland.
Major steel manufacturer Caparo Industries Group had its remaining businesses and assets bought last week after being put in administration in October.