The concept of the circular economy is quickly gaining traction across industries, promising to reshape the future of manufacturing, consumption, and waste management. Scrap metal is at the heart of this transformation, as it can be recycled indefinitely without losing its properties. By reintegrating scrap metal into the production cycle, businesses can significantly reduce waste, conserve resources, and lower costs.
Industrial scrap is often seen as a byproduct of manufacturing—something that needs to be disposed of or sold off quickly. However, what many businesses don’t realize is the potential for profitability hidden within this waste. From metal shavings to discarded machinery parts, industrial scrap can be turned into a revenue stream while simultaneously reducing environmental impact.
Steel recycling is vital due to its significant properties among other metals, as Steel is 1000 times stronger than iron and more elastic than rubber. American Iron and Steel Institute (AISI) reported that America uses 70 million tons of Steel yearly. Recycling of Steel per ton reduced the use of 1400 pounds of coal, 120 pounds of limestone, and 2500 pounds of iron ore. It also saved space in about 250 cubics of landfills. The Steel recycling industry employs 2 million people.
Pakistan is a more significant importer of scrap in South Asia. Its imports data depicts no considerable increase in buying of ferrous scrap 215,351 tons in October 2022, with a minor increase of 0.5% compared to 214,435 tons in August 2022. A fall of 22% in imports during Jan-Oct 2022 compared to the same period in 2021. A decline in ferrous scrap imports is associated with specific reasons are:
Imported scrap prices in Pakistan have rebounded, but trade remained subdued. Pakistan’s steel traders have increased their offers to Turkiye. Major producers have halted their productivity for specific reasons: low demand for finished steel products, electricity prices, transportation problems due to floods, and taxes.
Copper has more importance with better transmission quality than other metals. CRU (a business intelligence company) reported that in 2022, copper demand would increase in China to 15.55 million tons due to renewable energy facilities and electric vehicles (EV). The demand rise will be 4% from the energy and electric vehicle sector.
Scrap metal recycling is vital as in multiple recycling no change in the property of the metal. According to the American Iron and Steel Institute (AISI), steel scrap recycling is more important than other metals. Metal Waste and Recycling Market Report shows that scrap metal and recycling value is calculated at $272960 million in 2021, which is expected to increase to $322900 million at a Compound Annual Growth Rate (CAGR) of 2.4% from 2022-2028.
Imports of steel scrap in Pakistan are not remarkable in the current week. Heavy rainfall and floods in the country have slowed construction activities resulting in less demand for finished and semi-finished steel products. Only a few bookings were seen from Pakistan.
Urbanization is increasing worldwide, 55% of the world’s population is living in the cities, and it is estimated that the urban population will rise to 68%by 2050. Urbanization will increase demand for green steel and give attention to the sustainability of the steel.
In China’s limited demand for high-grade iron ore, most steel makers use low & midgrade iron ore. Many mills are reducing steel productivity. Since April, most of the mills have been adopting cost reduction plans, even making human resources planning for cost-cutting.
