The future of the scrap metal industry in Australia is poised for significant transformation, driven by technological advancements, sustainability initiatives and evolving market dynamics. Improvements in sorting technologies, such as automated and AI-driven systems, are enhancing the efficiency and accuracy of metal recovery processes. These innovations facilitate precise identification and segregation of metal alloys, improving recycling rates and reducing contamination. Furthermore, the global shift towards a circular economy is causing Australian manufacturers to adopt recycled metals as raw materials, thereby reducing reliance on virgin resources and minimizing environmental impacts. Although scrap metal prices have been gradually declining in recent years, in tandem with a fall in global steel prices, between 2019 and 2024 the market size of the scrap metal recycling industry in Australia grew at a compound annual rate of 2.4%. According to a report from IBISWorld, Australia´s scrap metal sector had a market value of $4.5 billion in 2024 and was made up of 152 businesses. Nevertheless, operators in the scrap metal recycling industry have faced mixed conditions in recent years. Declining activity in construction and disruptions to manufacturing have limited demand, while volatile conditions in international markets have contributed to fluctuating export demand. A selection of scrap metal prices can be found in the twice-monthly newsletter, Australian Steel News, and also in the Prices section of this website.

Steel scrap metal has never been more relevant to the steel sector because it will soon play a key role in the solution to the industry´s greatest problem: the fact that steelmaking accounts for 7% of global greenhouse gas emissions at a time when the world looks to decarbonise towards net-zero. The key is the move from BoF to EAF. Historically, about 70% of all steel was produced using the basic oxygen furnace (BoF) method and 30% using the electric arc furnace (EAF) method. In BoF, iron ore and coal represent 80% of the ingredients, and steel scrap just 5%. However, the burning of such an amount of fossil fuels is no longer socially acceptable. In contrast, in the EAF method, steel scrap comprises 45% of the total ingredients, with iron ore and coal a combined 50%. Experts say that recycling one tonne of steel saves the equivalent of 1.1 tonnes of carbon dioxide emissions; and at the same time saves the equivalent of 40% of the energy that would be required to produce new steel from raw materials. The bottom line is, if steelmakers want to be on the right side of history and position themselves for future success in a net-zero world, it is now time to get more strategic about scrap metal, to treat it as a core part of the green steel revolution – and herein lies the great opportunity for the scrap metal industry in Australia.