Recycled Copper Scrap Market Outlook
The Global Recycled Copper Scrap Market was estimated at USD 78,057.4 Million in 2022 and is anticipated to reach USD 1,32,471.6 Million by 2031, expanding at a CAGR of 6.5% during the forecast period.
Copper is 100% recyclable and is recycled through copper scrap generated at the time of manufacture and fabrication of semi-products or post-consumer scrap. Under the 2015 Paris Agreement, 192 countries have adopted a broad goal to reduce greenhouse-gas (GHG) emissions.
Various countries are committing to net-zero emissions by 2050. The process of recycling copper emits less carbon than the process of mining and refining copper. Recycled copper from scrap materials helps to attain sustainability goals. Governmental focus on reducing carbon emissions and attaining sustainability is boosting the demand for recycled copper scrap from various end-use industries.
The circular economy is a system, which is based on the principles of reuse and regeneration of materials and products to improve sustainability and reduce carbon footprint. Governments across the globe are increasingly developing policies and agendas for circular economy.
In recent years, circular economy has gained significant traction, as a promising tool for some of the majorly pressing crosscutting sustainable development challenges. Therefore, recycling and reuse of materials & products as well as metals are important in modern economic system for any developing as well as developed country.
Recycled copper scrap from end-of-life products and process-generated scrap offers a sustainable pathway towards reducing global dependence on primary ore in a context of the rising copper end-use demand.
Therefore, carbon recycling through a principle of circular economy reach a win-win landscape from resource availability to carbon neutrality. Thus, government focus on a circular economy increases the recycling of copper scrap and positive impacts the market growth.
Industrial production refers to the overall output of manufactured items, mined materials, and utility services within an economy. It is a crucial macroeconomic aspect that has a substantial impact on the recycled copper scrap market globally.
Recycling of copper scrap is strongly related to industrial production, as this material is utilized in a wide range of industrial applications, such as automotive components, electrical & electronic parts, building & construction, and others. Thus, an increase in industrial production boosts the demand for recycled copper scrap, while a drop in industrial production reduces the demand.
A variety of macroeconomic factors, including changes in government regulations, fluctuations in commodity prices, and movements in global trade patterns, influences industrial production. For instance, government policies that favor industrial growth such as tax incentives for enterprises or investments in infrastructure lead to an increase in industrial production, which, in turn, increase the demand for recycled copper scrap. Industrial performance and manufacturing export performance have been developing rapidly, which are impacting the market.
Recycled Copper Scrap Market Dynamics
Market Driver- Increasing Demand for Copper and Decreasing Copper Reserves
Currently, there is a global scarcity of copper, due to increased demand and difficulties faced by the Latin America-based supply streams. In December 2022, protests erupted throughout Peru, as the former president Pedro Castillo was removed from office in a trial for impeachment. The country holds around 10% of the global supply of copper.
On January 20, 2023, Glencore declared that it was suspending operations at its Antapaccay copper mine in Peru, after protesters looted and set fire to company property. In November 2022, Chile, the largest copper producer across the globe and a source of 27% of the global copper supply, saw its output fall 7% year over year.
In 2022, S&P Global Market Intelligence predicted that by 2035, the annual demand for copper is expected to nearly double from 25 million to over 50 million tones. Copper is used extensively in all infrastructure designed to support renewable energy, due to its exceptional electrical and thermal conductivity. The global power grid needs to be strengthened with millions of feet of copper wiring. Many of tonnes more are needed to construct wind and solar farms.
For instance, an offshore wind turbine requires 8 tonnes of copper for every megawatt of generation capacity. Therefore, copper recycling is expected to support the shift to a low-carbon global economy over the next several years, with scrap serving as a crucial part of the circular economy.
Copper scrap supply, which is currently increasing as increasing number of copper-containing products reach the end of their useful lives, has the potential to significantly disrupt the primary copper supply as well as help meet the anticipated increase in copper demand.
Market Driver- Increasing Sales of Electric Vehicles (EVs)
According to the International Energy Agency, electric vehicles (EVs) sales increased by more than twofold in 2021, bringing the global EV fleet to over 16.5 million units. Each form of EV consumes a significant amount more copper as compared to traditional vehicles with internal combustion engines.
For example, the different categories of vehicles use different amounts of copper, including internal combustion engine (ICE) using 23 kg, hybrid electric bus (Ebus HEV) using 89 kg, plug-in hybrid electric vehicle (PHEV) using 60 kg, hybrid electric vehicle (HEV) using 40 kg, battery electric vehicle (BEV) using 83 kg, and battery-powered electric bus (Ebus BEV) using 224-369 kg of copper depending on the size of the battery.
Majority of the copper foil used in batteries is produced from scrap. Electric vehicles (EVs) rely significantly on parts that need a lot of copper, such as electric motors, wiring, and charging infrastructure. Using recycled copper scrap is a cost-effective means to satisfy the demand for copper in several EV components. Therefore, there is a high demand for copper scrap, due to the rising sales of electric vehicles, which raises the need for infrastructure and components with high copper content.
Market Restraint- Competing Demand for Copper Scrap and Supply Chain Disruptions
Valuable copper-containing products wind up in landfills or informal recycling systems in several regions with poorly developed waste collecting systems, which reduce the quantity of copper scrap that is readily accessible. The loss of copper scraps in landfills is a major issue the scrap industry faces.
The lengthy lifespan of copper products, which are typically used for more than 30 years in infrastructure and buildings, between 10 and 20 years in the transportation industry, and for 10 to 30 years in industrial equipment before becoming available for recycling, also has a negative effect on the availability of scrap. Hence, these factors impact the availability of copper scrap and impede the growth of the market.
Scope of Recycled Copper Scrap Market Report
The report on the global recycled copper scrap market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Global Recycled Copper Scrap Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
2016 and 2021
by Type (New Scrap and Old Scrap), by End-use (Building & Construction, Electrical & Electronics, Transportation, Machinery & Equipment, Energy & Power, Others)
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered
Aurubis AG, Kuusakoski Oy, Umicore, CMC, Schnitzer Steel Industries, Inc, OmniSource, LLC, SA Recycling LLC, LKM Recycling, Elgin Recycling, Universal Recycling Services, Pacific Metal Group, Ames Copper Group, Wilton Waste Recycling, MTB Recycling, Glencore and Sims Limited.
Recycled Copper Scrap Market Segmental Outlook
Based on type, the global recycled copper scrap market is segmented new scrap and old scrap. The new scrap segment held XX% of the market share in 2022 and is expected to hold XX% of the market share in 2031. New scrap copper recycling has their own properties such as high purity and high grade of copper content.
Thus, the recycling is generally economically beneficial and easy to accomplish, as compared to old scrap recycling. This factor augments the demand for new scrap for copper recycling across the globe.
Based on end-use, the global recycled copper scrap market is segmented building & construction, electrical & electronics, transportation, machinery & equipment, energy & power, others. The electrical & electronics segment held a XX% share of the market in 2022, due to the growing demand for copper wires made from recycled copper scrap in the electrical and electronic industries.
Recycled copper scrap is the electrical conductor in many types of electrical wiring. Recycled copper scrap wire is used in power transmission, power distribution, electronic circuitry, and countless types of electrical equipment. Furthermore, computer technology, televisions, mobile phones, and portable electronic devices have become a major consumers of recycled copper scrap in recent years.
On the basis of regions, the global recycled copper scrap market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Asia Pacific held XX% market share in 2022. The market in the region is driven by the growing demand for recycled copper scrap, due to the thriving construction and power generation industries in China, along with continuous investment efforts in the advancement of telecommunications and electronics fields over the years.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the Global Recycled Copper Scrap Market
- Historical, Current, and Projected Market Size in terms of Value
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints, and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Axial Fans Market Performance
- New Scrap
- Old Scrap
- Bright Bare Copper
- Number 1 Copper
- Number 2 Copper
- Number 1 Insulated Wire
- Number 2 Insulated Wire
- Building & Construction
- Electrical & Electronics
- Machinery & Equipment
- Energy & Power
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
Key Market Players Profiled in the Report
- Aurubis AG
- Kuusakoski Oy
- Schnitzer Steel Industries, Inc
- OmniSource, LLC
- SA Recycling LLC
- LKM Recycling
- Elgin Recycling
- Universal Recycling Services
- Pacific Metal Group
- Ames Copper Group
- Wilton Waste Recycling
- MTB Recycling
- Sims Limited
Manufacturers operating in the global recycled copper scrap market include Aurubis AG, Kuusakoski Oy, Umicore, CMC, Schnitzer Steel Industries, Inc, OmniSource, LLC, SA Recycling LLC, LKM Recycling, Elgin Recycling, Universal Recycling Services, Pacific Metal Group, Ames Copper Group, Wilton Waste Recycling, MTB Recycling, Glencore and Sims Limited.