European metal recycling market on course for growth

One year after the economic crisis, the European metal recycling market is back on the growth path. Ecoprog expects the market volume for scrap steel to triple until 2014 – compared to the 2009 amounts.

In 2010, approximately 100 million tons of scrap steel will be sold in Europe. Compared to 2009, the market volume has increased by almost 70 percent. In comparison to the pre-crisis figures of 2008, ecoprog expects the market volume to grow by 35 percent. Since last year, the price for a ton of scrap steel has increased by about 50 percent, the amount of produced scrap steel by approximately ten per cent.

One can expect a further growth in the future. On the one hand, the great global demand for crude steel, especially as a consequence of the infrastructure development in the emerging countries, is a market driver. At the same time, the recovering economy and the again increasing industrial production in Europe result in growing amounts of new and old scraps.

In the end, especially the environmental legislation of the European Union will cause higher recycling rates and, hence, increasing amounts of scrap. In 2012 already, the European metal recycling market will probably not only achieve the pre-crisis level, but even rise above it. This will only happen, however, if the global economy remains stable.

The largest amounts of scrap emerge – resulting from the well advanced implementation of the European legislation – in Scandinavia and the German-speaking countries. This holds especially true for metalliferous waste from private households. In the years to come, the countries in Southern and Eastern Europe will also increasingly implement the European legislation. Hence, the amounts of scrap will also grow here.

Ecoprog has recently published the multi-client study, “The Metal Recycling Market in Europe.” It analyses all essential political, economic, managerial and technical trends in the European market for metal recycling and can be ordered at www.ecoprog.com.