Scrap is one of the few industries where the raw material is already above ground, already being produced every day and already being bought by industries that cannot do without it. That is a reason to take it seriously as a business opportunity. It is not a reason to expect an easy one. This article lays out the data behind the case, from global steel to Australian exports to electronic waste, names the forces pushing demand, and is just as clear about the risks. Every figure is attributed, and where we are doing arithmetic on a source, we say so.
Five numbers behind the case
| Measure | Figure | Source |
|---|---|---|
| World steel scrap use | About 630 million tonnes | EUWID, Jun 2026 [1] |
| Electric arc furnace share of world crude steel, 2025 | 30.3%, up from 29.1% in 2024 | worldsteel, via EUWID and GMK Center [1][2] |
| Australian metal scrap exports, 2025-26 | 3.05 million tonnes worth A$4.58 billion | DCCEEW [3] |
| Change in Australian export weight, value and average value per tonne since 2017-18 | +24%, +108% and +67% | DCCEEW, ScrapTrade calculation [3] |
| World e-waste generated, 2022 | 62 million tonnes, 22.3% formally recycled | UN Global E-waste Monitor 2024 [4] |
Why demand is structural
Steelmakers are shifting towards scrap
Electric arc furnaces make steel from scrap, and their share of world production rose to 30.3% in 2025 from 29.1% a year earlier [1][2]. Each percentage point of that shift is a pull on scrap supply. The Bureau of International Recycling reported that Turkey alone imported about 20.1 million tonnes of recycled steel in 2024, and that the European Union and the United States together exported more than 31 million tonnes of ferrous scrap that year [5]. These are large, repeated flows of material between regions, and every one of them is bought, graded, shipped and paid for by someone.
The valuable metals are worth far more than their weight
In Australia, non-ferrous metals were 16% of scrap export weight and 67% of value in 2025-26. A tonne of copper-alloy scrap was declared at about A$12,243, against about A$600 for ferrous scrap [3]. Copper alone is a global trade: China imported 2,249,952 tonnes of copper scrap in 2024, up 13.26% [6]. Aluminium recycling uses about 5% of the energy of primary production, so remelters have a strong reason to buy scrap [7].
E-waste is a large, under-recycled stream
The UN counted 62 million tonnes of e-waste in 2022, with 22.3% formally collected and recycled and generation projected to reach 82 million tonnes by 2030 [4]. The material is there, and the formal recycling system has not caught up.
Prices have moved up
Australia's average declared export value per tonne of metal scrap rose from about A$898 in 2017-18 to about A$1,503 in 2025-26 [3]. Copper-alloy scrap rose about 153% over that time. Rising values can be a tailwind for people who collect, sort and trade, though they also raise the cost of holding stock.
Who the opportunity is for
| If you are... | The opportunity |
|---|---|
| A seller or collector | Selling sorted material to a wider pool of buyers than the local yard |
| A trader | Earning a margin between sources and buyers |
| An agent | Being paid a commission to run listings or deals for others |
| A broker | Earning the margin on scrap you source and resell |
| A supplier of services | Collection, sorting, logistics and documentation for others |
For the new roles, see ScrapTrade Adds Scrap Agent and Broker Roles.
The risks, in plain terms
| Risk | What it means |
|---|---|
| Price volatility | Prices move daily, and holding stock can lose money. A 10% fall on a lot worth A$48,385 is about A$4,839 |
| Thin margins on cheap metal | Steel is about 40 cents a kilogram on the ScrapTrade index. Margins only work at volume |
| Regulation | Buying scrap from the public is regulated in many places because of theft. Export and trade rules also change. Europe's draft list would restrict metal scrap exports to a group of countries. See Europe Is Keeping Its Scrap. Who Pays? |
| Concentrated buyers | A few countries take most of Australia's scrap. Five took 86.5% of ferrous tonnes in 2025-26 [3]. A rule change in one market can move prices |
| Grading and disputes | A re-graded load loses margin |
| Working capital | Valuable metals tie up serious cash. See How Much Money to Start a Scrap Business? |
What the data does not promise
- It does not say that any individual will profit. National export totals are not a trader's income.
- It does not predict prices. Past values are not forecasts.
- It does not describe the margins that small traders earn. We found no reliable published figure for that, so we do not quote one.
The sensible reading is that demand is large and durable, and that the work is in doing the unglamorous things well: grading, pricing, supply and records. Read Can a Scrap Business Make You Rich? for the unit economics, and Starting a Scrap Business With Little Capital for ways in.
How to look further
For the Australian detail see our reference article, Australia's Scrap Metal Exports: 2025-26 Data. For the metals themselves, read the guides to copper, aluminium, steel and e-waste. The live material prices show what the market is indicating today.
Frequently asked questions
Is scrap a good business?
It can be, for people who do it carefully. Demand is large and durable, but margins are thin on cheap metals, prices are volatile and regulation is real.
Why is demand for scrap growing?
Steelmakers are shifting towards scrap-based electric arc furnaces, valuable metals are sought by smelters and remelters, and large streams like e-waste are only partly recycled.
Is scrap trading risky?
Yes. The main risks are price movement while you hold stock, grading errors and rule changes.
How big is the scrap industry?
World steel scrap use alone is about 630 million tonnes a year, and Australia's metal scrap exports were worth A$4.58 billion in 2025-26.
Where should I start?
With small lots, learning to grade and price, or working as an agent. See the overview linked above.
Sources
- EUWID Recycling and Waste Management, Scrap use in global steel production rises in 2025 (June 2026).
- GMK Center, The share of EAF in global steel production in 2024 increased to 29.1%.
- DCCEEW, Waste exports data collation, September 2026 (ABS records), ScrapTrade calculations. See Australia's Scrap Metal Exports: 2025-26 Data.
- UNITAR and partners, Global E-waste Monitor 2024.
- Bureau of International Recycling, World Steel Recycling in Figures, 2024 edition, as reported by Recycling Today.
- SMM, 2024 Brief Review of Imported Copper Scrap.
- International Aluminium Institute, Aluminium recycling saves 95% of the energy needed for primary aluminium production.
Figures are as published by the sources named, and the latest Australian year is provisional. ScrapTrade operates a marketplace and has a commercial interest in the scrap trade. This article is general information, not financial or investment advice, and promises no income.