Mrudula K
by on April 18, 2024
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San Francisco, 18 April 2024: The Report Copper Scrap Market Size, Share & Trends Analysis Report By Feed Material (Old Scrap, New Scrap), By Grade (Bare Bright, #1 Copper, #2 Copper Scrap), By Application, By End-use, By Region, And Segment Forecasts, 2024 - 2030

The global copper scrap market size is anticipated to reach USD 105.90 billion by 2030 and is projected to grow at a CAGR of 8.6% from 2024 to 2030, according to a new report by Grand View Research, Inc. Increasing use of renewable energy sources for electricity generation has resulted in technological developments in the wind generation sector. This factor, coupled with rising awareness and emphasis on clean energy and sustainability, is expected to drive the demand for copper in wind energy production. This is set to become the biggest driver for the market over the forecast period.

Further, rising investments in EV manufacturing facilities across the world are expected to positively influence copper usage, consequently benefiting the market growth over the forecast period. For instance, in March 2022, Suzuki Motor Corporation decided to invest USD 1,320.2 million in its manufacturing plant in Gujarat, India. It is also planned to produce 125,000 EVs by 2030. In addition, over past two years, companies such as Daimler, Stellantis, and General Motors invested USD 47.0, 35.0, and 23.0 billion for their EV production facilities, respectively.

Stringent environmental regulations were introduced to mitigate environmental adversities. As a result, scrap dealers are required to obtain a certificate of conformity that indicates scrap yards and businesses comply with waste regulations. Further, Standard Rules SR2015No3 describes metal recycling and waste electrical and electronic equipment authorized treatment facility (ATF) excluding ozone-depleting substances. A license is required for all metal trading and is issued by the local authority. These regulations influence demand for copper scrap and impact market growth.

The European Union has set an ambitious target to become climate-neutral by 2050. Owing to this, the region is witnessing a significant boost in the production of EVs. For instance, in July 2022, Volvo announced an investment of EUR 1.20 billion (USD 1.22 billion) to set up a new manufacturing plant in Slovakia, and the plant is expected to begin production by 2026. Similarly, the rising focus of European countries on sustainable and clean energy generation is propelling the demand for renewable energy like wind and hydro, which is positively impacting copper.

Request sample report of Copper Scrap Market@ https://www.grandviewresearch.com/industry-analysis/copper-scrap-market-report/request/rs1

The market is expected to be driven by increasing emphasis on sustainability and clean energy, leading to rising electrification of vehicles and power generation through renewable sources.

According to the International Copper Study Group, copper scrap accounted for a share of 25%-30% of global refined copper production over the past two years. Slow mining of copper due to political and operational hurdles in key producing nations in South America has also impacted global supply during 2022.

Copper Scrap Market Report Highlights

  • Based on feed material, the old scrap segment led the market with the largest revenue share of 51.6% in 2023. These enter the scrap value chain largely through an unorganized route.Old scrap remains the most predominant supply source of scrap, and this is expected to remain same during the forecast period
  • Based on grade, the #2 copper segment held the market with the largest revenue share of 31.6% in 2023, and it is also expected to grow at a significant CAGR over the forecast period, due to its wide availability
  • Based on application, the brass mills segment is expected to grow at the lucrative CAGR over the forecast period, owing to high demand from applications such as hardware & plumbing, valves, casings, and decorative items
  • Copper is of vital importance in wire & cable applications, and these are key enablers for global market.
  • Asia Pacific dominated the market with the revenue share in 2023, owing to factors such as focus on reducing carbon emissions by a shift in attention toward renewable energy, amendments in trade policy, and investments across Asia Pacific region are expected to positively increase copper scrap demand
  • In December 2022, AIM Recycling, a Canadian-based scrap recycler entered into a 50:50 JV agreement with Kalischatarra (Kalisch Recycling), a Mexican scrap recycler. This will expand the former’s customer reach in Mexico

The U.S. is one of the largest copper scrap suppliers worldwide, and the country exported nearly USD 4.59 billion of copper scrap in 2023. Key export destinations were China, Germany, South Korea, Belgium, and Japan. The buyers in China prefer overseas scrap on account of its consistent quality and benefit of tax rebates.

In 2022, 891.8 kilotons of copper were consumed in the U.S., in the form of refined metal and its alloys produced. Despite the rise in product prices since 2020 and prices peaking in 2022, demand for copper scrap has been rising due to clean energy, electrification, and gradual regularization of recycling value chain. As a result of the rising demand for copper scrap and usage of copper products in various applications, many market players are adopting strategic initiatives to stay ahead in a competitive market.

For instance, in March 2023, Sims Metal, an Australian-origin metal recycling company, acquired Northeast Metal Traders (NEMT) in Pennsylvania to expand its regional operating and commercial assets. NEMT is among the largest copper recyclers in the country, with extensive supply connections across the eastern states.

Copper Scrap Market Report Scope

Report Attribute

Details

Market size value in 2024

USD 64.67 billion

Revenue forecast in 2030

USD 105.90 billion

Growth rate

CAGR of 8.6% from 2024 to 2030

Base year for estimation

2023

Historical data

2018 - 2022

Forecast period

2024 - 2030

Market growth stage is moderate, and pace of market growth is accelerating. The market is characterized by rising demand for clean renewable energy through power generation, electrification and their growing adoption of copper scrap in diverse applications. The experiences a high level of merger and acquisition activities by copper scrap recycling companies owing to fragmented nature of market.

List of Key Players in the Copper Scrap Market

  • Ames Copper Group
  • Aurubis AG
  • CMC
  • Glencore
  • Global Metals & Iron Inc.
  • JAIN RESOURCE RECYCLING PVT LTD.
  • KGHM METRACO S.A.
  • OmniSource, LLC.
  • Pascha GmbH.
  • Perniagaan Logam Panchavarnam Sdn Bhd
  • S.I.C. Recycling, Inc.

 

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