Scrap metal demand to soar in next two decades, says WoodMac

ARECENT RE PORT PUB LISHED BY WOOD MACK ENZIE (WoodMac), international metals and mining research consultancy group, has predicted a rise in the global demand for scrap metal in the next two decades.

According to the UK based organisation, since consumer and investor pressures asking for recycled content are starting to change the scrap metal market, demand for the material is expected to grow with an additional 200 Metric tonnes per annum of steel scrap and 75 Metric tonnes per annum of aluminum by 2040.

Renate Featherstone, WoodMac’s chief analyst, noted that beyond what happens in the private sector, policies that mandate greater recycling rates are also driving cleaner and more reusable scrap collection as governments across the globe generally share a focus on keeping reusable materials out of landfills, solid waste management laws are tightening, leading to increased scrap separation and quality monitoring which should in theory, lead to higher scrap availability and utilisation.

Featherstone, however, added that, there are no universal laws that encourage the consumption of recycled materials which means despite the increased demand, the material is still expected to remain underutilized compared to its overall availability.

WoodMac estimates that using all available scrap could bring down aluminum and steelmaking emissions by up to 600 metric tonnes a year each, but also pointed out that the increased availability of scrap will not eliminate the need for primary metal.

“Mining, refining and smelting will remain part of our lives for many decades to come,” the report stated.

WoodMac also suggested that the wide-scale use of scrap metals must go handin-hand with compelling incentives and quality assurance.