Iron Scrap Prices

Iron Scrap Prices December 2023

In the fourth quarter of 2023, the price of the iron scrap in the United States reached 335 USD/MT by December. Similarly, in China, the iron scrap prices hit 411 USD/MT in the same month.

Iron Scrap Price Trend, Market Analysis, and News

IMARC’s newly published report, titled “Iron Scrap Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data,” offers an in-depth analysis of iron scrap pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot price of iron scrap at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of iron scrap price trend across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing iron scrap price fluctuations, such as supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Iron Scrap Market Analysis

The global iron scrap market size reached 590 Million Tons in 2023. By 2032, IMARC Group expects the market to reach 790.23 Million Tons, at a projected CAGR of 3.30% during 2023-2032.

• The rapid pace of industrialization and urbanization globally significantly drives the demand for iron scrap. As countries continue to industrialize, especially in emerging economies, the need for steel and iron products grows exponentially. Urbanization leads to the construction of infrastructure, residential, and commercial buildings, all of which require significant amounts of steel. According to OUR WORLD IN DATA, across most high-income nations such as Western Europe, the Americas, Australia, Japan, and the Middle East, more than 80% of the population resides in urban areas. Iron scrap becomes a critical raw material due to its cost-effectiveness and reduced environmental impact compared to virgin iron ore extraction. The steel industry relies heavily on scrap metal as it can be melted down and reused multiple times without losing its properties, making it an essential component in the circular economy model.
• Environmental regulations and sustainability goals play a crucial role in driving the iron scrap market. Governments worldwide are implementing stringent regulations to reduce carbon emissions and promote recycling to combat climate change. The steelmaking process using scrap metal significantly reduces greenhouse gas emissions compared to using iron ore, thus aligning with global sustainability goals. The recycling process consumes less energy, further minimizing the environmental footprint. For instance, the European Union has set ambitious targets to reduce CO2 emissions by 55% by 2030, and recycling metals such as iron scrap, which is a key strategy to achieve these targets.
• The economic advantages of using iron scrap over virgin iron ore extraction are substantial, driving the market growth. Recycling scrap iron is more cost-effective as it reduces the need for mining, transportation, and processing raw materials. This cost-efficiency is particularly beneficial in times of economic downturns when industries look to cut costs. Moreover, the fluctuating prices of iron ore make scrap iron a more stable and predictable resource. The cost savings from using recycled materials are passed on to various sectors, including construction and manufacturing, thus fueling the demand for scrap iron.

Iron Scrap News

The report covers the latest developments, updates, and trends impacting the global iron scrap market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, technological innovations, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the iron scrap price trend.

Latest developments in the iron scrap industry:

• On Feb 9, 2024: Brazil set a record high in ferrous scrap export volumes in 2023, with about 800,000 mt of material flowing abroad, more than doubling the 369,305 mt recorded in 2022, according to latest customs' data analyzed by S&P Global Commodity Insights.
• On May 4, 2024, India has raised objections to a European Union (EU) proposal to levy duty on export of (ferrous) scrap from member nations or ban export of scrap to non-OECD countries.

Product Description

Iron scrap, also known as ferrous scrap, is a type of recycled metal derived from discarded iron-containing products and structures. It consists of a wide range of items including old vehicles, machinery, household appliances, demolished buildings, and manufacturing by-products. This scrap metal is collected, sorted, and processed to be reused in various industries, primarily in steel production.

The process of creating iron scrap begins with the collection of discarded iron and steel products. These items are transported to recycling facilities where they undergo sorting and cleaning to remove contaminants such as plastics, wood, and other non-metallic materials. The cleaned scrap is then shredded into smaller pieces to facilitate easier handling and melting. Advanced separation techniques such as magnetic separation are employed to ensure the purity of the iron scrap. Finally, the processed scrap is compressed into bales or melted down in furnaces to produce new steel and iron products.

Regional Coverage

The report provides a detailed analysis of the iron scrap market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the iron scrap price trend. 

Global Iron Scrap Price

The report offers a holistic view of the global iron scrap pricing trends in the form of iron scrap price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights current price of iron scrap but also provides insights into historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed iron scrap demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Iron Scrap Price

Europe's iron scrap pricing trends are deeply affected by its stringent environmental regulations and the push towards sustainable and recycled materials. The automotive and aerospace industries in Europe, which demand high-quality specialty metals, further complicate the pricing landscape. Energy costs and the availability of renewable energy sources also significantly influence iron scrap production costs. Additionally, the region's dependency on iron scrap imports, coupled with fluctuating currency values, adds another layer of complexity to understanding price trends in this market.

Detailed price information for iron scrap can also be provided for an extensive list of European countries.

North America Iron Scrap Price

In North America, iron scrap prices are closely tied to technological advancements in extraction and processing techniques, which aim to reduce costs and enhance efficiency. The region's emphasis on defense and technology sectors, which require precise and high-grade metals, drives demand variability. Furthermore, trade policies, particularly those involving major trade partners like Canada and Mexico, heavily influence iron scrap supply chains and pricing structures. The shift towards green energy and electric vehicles in North America also affects demand patterns for metals.

Specific iron scrap historical data within the United States and Canada can also be provided.

Middle East and Africa Iron Scrap Price

The iron scrap pricing trends in the Middle East and Africa are increasingly impacted by infrastructural developments and investments in the construction and transportation sectors. The region’s political climate and its effect on operational stability and security are also crucial in determining price trends. Additionally, the Middle East's strategic initiatives to diversify away from oil dependency and invest in mining and metal production capabilities are reshaping its market dynamics. In Africa, the availability of resources combined with foreign investment in mining projects heavily influences local and global iron scrap supply and prices.

Region-wise data and information on specific countries within these regions can also be provided.

Asia Pacific Iron Scrap Price

In the Asia Pacific region, iron scrap pricing dynamics are significantly influenced by robust industrial growth and expanding manufacturing sectors, particularly in China and India. The region's high demand for metals is driven by its active construction industry and increasing investments in infrastructure projects. However, supply disruptions due to geopolitical tensions and regulatory changes in mining practices also play a critical role in shaping price fluctuations. Additionally, trade policies and import-export tariffs continue to impact the cost structures and availability of iron scrap, making the Asia Pacific market a complex environment for price trend analysis.

This iron scrap price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Iron Scrap Price

Latin America's iron scrap market is predominantly influenced by its rich natural reserves, particularly in countries like Chile and Brazil. However, political instability and inconsistent regulatory frameworks can lead to significant volatility in iron scrap prices. Infrastructure challenges and logistical inefficiencies often impact the supply chain, affecting the region's ability to meet international demand consistently. Moreover, economic fluctuations and currency devaluation are critical factors that need to be considered when analyzing iron scrap pricing trends in this region.

This comprehensive review can be extended to include specific countries within Latin America.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of iron scrap pricing, covering global and regional trends, spot prices at key ports, and a breakdown of ex-works, FOB, and CIF prices.
• The study examines factors affecting iron scrap price trend, including supply-demand shifts and geopolitical impacts, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The iron scrap price charts ensure our clients remain at the forefront of the industry.