As per Globe Newswire, in 2021 the market size for the global metal recycling market was whopping USD 219.8 billion. By 2027, the market experts forecast the market to touch USD 302.4 billion, growing at a CAGR of 5.46%.
When it comes to India, as per the Indian Institute of Metals, the scrap metal industry is valued at approximately USD 18 billion. It is expected to grow at a CAGR of 5%-6% in the years to come. The driving force of growth lies in the increasing consumption of metals in India’s manufacturing as well as construction sector.
Now that you know about the scrap metal recycling market size, let’s unveil the basics of the metal recycling market covering the variety of scrap metal, how it is recycled, the benefits of metals recycling, and the factors affecting scrap metal prices etc.
Understanding The Meaning
Scrap metal recycling is recovering and processing recyclable metal components from products and structures. Later, they are reintroduced as raw materials for producing new goods. The best thing about metals is that they can be recycled keeping their properties intact. Recycling scrap metal offers dual benefits. Firstly, it offers monetary benefit and secondly, it benefits the environment.
Indian Scrap Market Scenario
In a circular economy, steel is a highly used material because it can be used, recycled, and reused endlessly. Not only that, you’d be surprised to know that steel is the most recycled material worldwide. Iron ore is the primary source of raw material used in the steel-making process & used/reused steel i.e. steel scrap is the secondary raw material used in the steel industry. The Indian steel industry comprises a vast number of small-scale steel producers using scrap combined with other raw materials in electric arc furnaces or induction furnaces for making steel.
As assessed in March 2019, there are approximately 47 electric arc furnaces & approximately 1128 induction furnaces operating in India which depend majorly on scrap as a primary raw material for producing steel.
Types Of Recyclable Metals
Broadly speaking, scrap metal has two types. The first one is non-ferrous and the second one is ferrous. Let’s understand what sets them apart from each other:
- Non-Ferrous: Non-ferrous metals don’t contain iron as a base metal or primary component. These metals have high corrosion resistance, higher conductivity, and non-magnetic properties. The term non-ferrous is often used for describing an array of alloys & metals that don’t contain iron. Out of many non-ferrous metals, the most common base metals are:
- Copper
- Aluminium
- Lead
- Nickel
- Zinc
- Tin
Apart from base metals, precious metals such as silver & gold are also included in non-ferrous metals.
- Ferrous Metals: The word ferrous is derived from the Latin word ferrum which means iron. When it comes to metals, it is referred to as iron as well as steel. Iron is the 2nd most commonly occurring metal in Earth’s crust. Earth’s natural magnetism gives it a magnetic field. Since most of the ferrous metals are magnetic, generally metal scrap yards use electromagnets mounted on excavators for loading and unloading ferrous scrap from trucks and for moving it around the yard.
Ferrous metals are used in the following:
- For construction purposes, they are used in ductwork, rebar, beams, & electrical wiring.
- For transportation purposes, they are used in railroad scrap, cars, rotors, motor blocks, & drums.
- Additionally, they are also used in containers and packaging materials.
The scrap metal is a byproduct of steel manufacturing. This scrap type includes busheling, skeletons, & clippings and is relatively easier yet valuable to recycle back into the same stream it came from. Because it is not altered, it doesn’t require much processing.
Recycling Process
Typically, there are five stages of the recycling process. Let’s explore them one by one:
1. Collection: When scrap metal is taken to a scrap metal yard, it is unloaded for processing further & weighed in so that it can be priced accordingly.
2. Identification & Sorting: The staff at scrap yards use different ways such as visual identification, magnets, electrical currents, & spectrometers to identify whether it is a ferrous or non-ferrous metal. Later, it is segregated based on the metal type. It’s vital to segregate metals because they must meet specific set quality standards to be eligible for recycling. It means cross-contamination with any other metal or materials is a big no.
- Preparation: To ensure the efficiency of the melting process, metals are supposed to be cut down to a pre-decided shape & sizes. As scrap metal is made to order, the concerned technician at the scrap yard knows in advance about the compositions, weights, & shapes of the metals the customer needs. Based on final usage, shredding, baling, & torching are all examples of how scrap metal can be prepared.
4. Melting & Refining: The melting process for scrap metals varies from one variant to the other, as well as the desired purity level. When metals are melted, the impurities rise to the top and can be separated from the metal. Depending purely on the requirement, some metals are additionally refined with the help of processes such as electrolysis to create a better version of the metal.
- Solidifying: Once all the contaminants & impurities are filtered out from the melted metal, the next step is solidification. As per the requirement, the metal is solidified into wire, coil, sheets & bars. There can be times when chemicals are added to the molten metal to either enhance its density or modify its properties. Once the metal is solidified, the recycled metal is good to be used again.
Key Benefits
Out of many, here are a few benefits offered by scrap metal recycling:
- Financial Incentive: Recycling scrap metal offers monetary benefits as one gets paid for selling scrap to the scrap yard of their choice. The pricing fluctuates based on metal-wise market conditions and other factors. Keeping that in mind, it won’t be wrong to say that stainless steel price will directly impact its scrap metal prices.
- Hazardous Waste Management: In a landfill, various metals can take a relatively longer time when it comes to breaking down into smaller elements to return to the earth. For hundreds of years, these metals have taken up plenty of space. Metals like mercury & lead are quite dangerous to be out in the open. Over time, such metals can contaminate the surroundings & end up polluting the soil and water. These should be disposed of with utmost safety & care.
For the reasons mentioned above, keeping metals out of landfills is the way to go. Instead, take them to a scrap yard, reduce waste, do your bit in diminishing pollution & get monetarily rewarded for the same. It is a win-win situation in all cases.
Summing It Up
Classified into ferrous & non-ferrous metals, scrap metals undergo a meticulous recycling process involving identification, sorting, preparation, melting, and solidification. In addition to its environmental benefits, recycling offers monetary gains and helps a great deal in hazardous waste management which can have a detrimental impact on the environment. Emphasizing energy conservation, & contributing to sustainable practices, the industry exemplifies a dynamic approach towards sustainable resource utilization and waste reduction.