Report Overview

An increasing focus on thwarting rising raw material prices and addressing the growing concerns for environmental sustainability is expected to boost the growth of Brazil Scrap Metal Recycling Market during the forecast period between 2024 and 2030.

Brazil Scrap Metal Recycling Market - Industry Trends & Forecast Report, 2030

The Brazil Scrap Metal Recycling Market size was estimated to be worth USD 640.22 million in 2023. During the forecast period between 2024 and 2030, the Brazil Scrap Metal Recycling Market size is projected to grow at a CAGR of 5.12%, reaching a value of USD 890.19 million by 2030. Major growth factors for the Brazil Scrap Metal Recycling Market include rising urbanization and industrialization and an increasing demand for steel and other metals. Additionally, the government and private sectors are encouraging recycling due to the diminishing levels of natural resources, which is expected to fuel the growth of the Brazil metal recycling market over the forecast period.

Scrap Metal Recycling – Overview

Scrap metal recycling is removing and reusing metal parts from end-of-life products and buildings to be used as raw materials to make new products. Items like poles, ropes, and bars may be made from this recycled metal. The primary goal of the scrap metal cycle is to recycle and reuse metals rather than dispose of them in landfills. Recycling metal lowers the quantity of new metal that has to be mined, protecting animal habitats and water quality. Metal may be recycled indefinitely.

Brazil Scrap Metal Recycling Market

Growth Drivers

Rising Focus on Recycling for Sustainability

The increasing environment awareness and rising focus towards sustainability is emerging as one of the major driving factor for the Brazil scrap metal recycling market. Recycling scrap metal lessens the demand for raw material extraction and mining, which contributes to the preservation of natural resources. Redirecting scrap metal from landfills contributes to waste reduction as well. Recycling is important, as it is a profitable sector that lowers carbon emissions and generates employment. One of the most recycled materials in the nation is steel. Positive government initiatives to lower carbon emissions are also anticipated to propel market expansion.

Challenges

Informal Sector of Metal Recycling

The scrap metal recycling sector in Brazil is inherently informal, which makes it difficult for the authorities to track and regulate the recycling process. The lack of regulations limits the safety regulations for recycled metal that will be further used in the end user industries, including construction and automotive. As a result, the final products in these industries may or may not meet international safety standards. This acts as a major restraining factor for the Brazil scrap metal recycling market.

Brazil Scrap Metal Recycling Market

Segmental Coverage

Brazil Scrap Metal Recycling Market – By Metal

Based on metal, the Brazil Scrap Metal Recycling Market is segmented into ferrous and non-ferrous. The ferrous segment is further divided into iron and steel. The non-ferrous segment is further sub-segmented into copper, aluminum, lead, and others. The ferrous segment holds a larger share of Brazil Scrap Metal Recycling Market, as recycled iron and steel have a wide range of applications in various industries, including automotive, consumer goods, and building & construction. The building & construction sector uses a significant amount of scrap iron and aluminum metal for a variety of projects, including bridge and highway construction, which drives the demand for ferrous scrap metal.

Brazil Scrap Metal Recycling Market – By Equipment

Based on equipment, the Brazil Scrap Metal Recycling Market is segmented into shredders, shears, granulating machines, and briquette machines. The shredders segment accounts for the highest market share in the Brazil Scrap Metal Recycling Market by equipment.

Brazil Scrap Metal Recycling Market – By End User

Based on end user, the Brazil Scrap Metal Recycling Market is segmented into building & construction, automotive, equipment manufacturing, shipbuilding, packaging, consumer appliances, and others. The building & construction segment dominates the Brazil Scrap Metal Recycling Market by end user. The growth in the construction projects, particularly in the industrial, commercial, and energy & utilities sectors, for infrastructural growth in the country is boosting the demand for scrap metals. The automotive industry also holds a substantial market share owing to the presence of leading automotive manufacturers, such as Kia, BMW, General Motors, and Hyundai, in the country.

Competitive Landscape

Major players operating in the Brazil Scrap Metal Recycling Market include Gerdau S.A., Companhia Brasileira de Alumínio (CBA), Metallic, R.S. Metais, Brasil Metals, WR Metais, Cobrecom, and Recemil.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Metal

• Ferrous

1. Iron

2. Steel

• Non-ferrous

1. Copper

2. Aluminum

3. Lead

4. Others

By Scrap Type

• Old Scrap

• New Scrap

By Equipment

• Shredders

• Shears

• Granulating Machines

• Briquetting Machines

By End User

• Building & Construction

• Automotive

• Equipment Manufacturing

• Shipbuilding

• Packaging

• Consumer Appliances

• Others