Recycling raw materials is an important part of environmental conservation, and metals are one of the most recycled materials in the world. The primary reason for recycling metals is their ability to undergo continuous recycling multiple times without degrading their core properties including iron, carbon, and strength.
According to 2019 reports, the global scrap metal industry is a major contributor, with a market value exceeding $406.16 billion. The best part about recycling scrap metals is that it fulfills the purpose of providing financial incentives as well as environmental ones.
Now that you know, why are scrap metals recycled, and what is their market value?
The following sections of this blog will discuss the various types of scrap metals, their benefits, and their prices.
Scrap Metal Types
These mostly consist of ferrous metal scraps and non-ferrous metal scraps. Some base metals in non-ferrous metals include copper, nickel, aluminum, lead, tin, zinc, gold, and silver while ferrous metals consist of iron and steel.
Steel Scrap
This ferrous metal type includes steel and iron, valued at 655 million metric tons in 2023. Some of the items that include steel scrap are:
- - Construction and building materials: rebars, beams, and electric wiring
- - Transportation products and parts: cars, motor blocks, drums, and railroad scrap
- - Packaging and containers
- - Steel manufacturing by-products: skeletons, clippings, and busheling
While the industries that rely on steel scrap include construction, automotive, shipping, consumer appliances, and steel manufacturing.
Several developing nations demand more raw materials for steel manufacturing and use more recycled steel scrap to reduce their carbon footprints, affecting steel and iron scrap prices.
Copper Scrap
This non-ferrous metal type has a variety of uses and a market size of $58868.7 million as of 2022. Due to its conductivity properties, it is most commonly found in old copper ports, pans, copper pipes, car parts, older appliances, copper bearings, roof accents, and wires.
The market for copper scrap is driven by its effectiveness as a conductor of electricity and heat, as well as its use in the energy, telecommunications, and transportation equipment industries.
Applications for this consistently valuable scrap metal include heat exchangers, plumbing tubes, water pipes, telecommunications wiring, and roofing sheets.
Aluminum Scrap
This is another highly prevalent non-ferrous metal, with a global recycling rate of over 76% and a value of USD 5.60 billion in 2021. It gained popularity due to its energy efficiency and lower environmental impact. The best qualities of this scrap metal include lightness in weight, ductility, malleability, and corrosion resistance.
Transport, electronics, construction, and packaging are some of the sectors that drive demand, and these can be further divided into aluminum ingot, foil scrap, and others.
Lead Scrap
Globally, lead is known for properties such as soft texture, corrosion resistance, and excellent malleability. Valued at $15 billion in 2019, this non-ferrous metal has a higher recycling rate than commonly recyclable items like newspapers, glass, and plastic bottles.
According to the International Lead Association, recycled lead accounts for more than 50% of global lead supply due to its cost-effectiveness and ease of production, as well as a decline in lead mining due to a shortage of lead ore and stricter regulations.
Some of the main drivers of lead scrap are:
- The growth rate of recycled lead acid batteries
- The demand for radiation shielding in the healthcare industry
- The increased demand for uninterrupted power supplies
- Energy storage across telecom and data centers
Recycled lead is also called secondary lead, which is extracted from lead acid batteries, lead sheet boards, pipes, cable sheathings, and plumbing articles.
Zinc Scrap
This is an important non-ferrous source since it is used in different applications such as batteries, galvanization, and die casting. Factors such as increased demand for zinc, environmental concerns, an emphasis on recycling, and a shift towards a circular economy are largely responsible for the growth of zinc scrap.
It is primarily extracted from steel which is already galvanized with zinc coatings, brass (an alloy of zinc and copper), zinc roofing materials, and electronic waste.
Major industries that deal with this include pharmaceuticals, zinc processing, chemical production industries, and hot dip galvanizing.
Zinc Scrap Uses
- - Corrosion protection for steel and alloy products
- - Brass and bronze production
- - Manufacturing chemical compounds and products
- - Production of medications
- - Battery manufacturing
- - Fertilizer production
Beneficial properties and versatility drive its demand, making it a valuable commodity in the global scrap market with such diverse applications.
Nickel Scrap
Nickel is a shiny, non-ferrous metallic element that is recyclable without sacrificing quality. It is crucial for many products due to its high melting point, ductility, catalytic characteristics, full recycling, room-temperature magneticity, and corrosion and oxidation resistance.
The major demand for nickel scrap comes from copper and nickel-based alloys, stainless steel, and alloy steels.
The Sectors where Nickel Scrap is Used
- - Stainless steel production
- - Aerospace industry for engines and turbines
- - Chemical industry for piping systems and reactors
- - Electrical industry for electric connectors and components
- - Medical Industry for dental braces and orthopedic implants
Brass Scrap
This scrap alloy consists of zinc and copper, and its main sources are firearm ammunition, furniture fixtures, and jewelry.
Its major properties include its attractive golden color appearance, moldability, durability, conductivity with electricity, high-temperature resistance, and corrosion resistance.
Major Uses of Brass Scrap
- - Decorative fixtures and objects
- - Plumbing fittings and fixtures
- - Musical instruments
- - Medical components
- - Radiators and heat exchangers
Conclusion
Understanding different scrap metals is essential in comprehending the market of scrap metals. These help buyers or sellers make wise decisions and get the best steel scrap prices when trading scrap materials in bulk quantity. Furthermore, by staying informed about scrap metal usage and prices, traders can help navigate challenges and capitalize on opportunities in the ever-changing scrap metal market.
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