Iron

Every ton of recycled iron saves around 1,150kgs of iron ore, 98% of which is used to produce various steel products. Therefore, most recycled iron comes from steel-based products, and the two recycled materials largely overlap in both operations and market dynamics.

Iron recycling feedstocks

Most iron scrap is found as iron-containing alloys or products (such as cast iron, wrought iron, or steel) and is processed in the form of scrap steel. Iron scrap recycling is a key area of sustainable metallurgy, with distinct categories of pre-consumer and post-consumer materials driving circular economy outcomes. According to the USGS, scrap feedstocks for iron recycling consist of approximately 58% post-consumer scrap from end-of-life products and 24% pre-consumer scrap produced in steel-product manufacturing plants. The remaining 18% is referred to as “home scrap” in the steel and iron industry and consists of recirculating scrap from current operations.

Pre-consumer scrap refers primarily to steel waste generated during industrial manufacturing processes, before products reach end-users. This includes offcuts, stampings, and rejected components produced during fabrication. Key sources of pre-consumer feedstock include automotive manufacturing (particularly stamping operations that yield significant volumes of steel scrap) as well as appliance and equipment production, which generate excess metal sheets and byproducts. The construction industry – which is a top consumer of iron and steel products – also contributes to pre-consumer scrap.

Pre-consumer scrap is typically clean and of known composition, since it originates from controlled industrial processes. It tends to have fewer potential contaminants like paint, rust, or mixed materials, and is thus highly valued by steelmakers – especially for producing high-grade steel. Overall, pre-consumer scrap provides a steady and immediately recyclable supply of iron, accounting for roughly a quarter of global scrap availability.

Post-consumer scrap—originating from end-of-life vehicles, appliances, demolished buildings, infrastructure, industrial equipment, and ships—accounts for approximately 58% of the global recycled iron supply. As such it is the largest source of iron scrap. Countries with well-established infrastructure like those in the European Union generate high volumes of post-consumer scrap due to centuries of steel use and well-established recycling systems, often creating surplus for export. By contrast, emerging economies such as India and parts of Southeast Asia are seeing rising scrap generation but still rely heavily on imports due to younger infrastructure and less-developed collection networks. The significant share of post-consumer iron scrap in the global recycling industry underscores the importance of continued investment in collection infrastructure and processing technologies to enhance recycling efficiency and meet growing material demands.

Determining the precise annual share of recycled iron in the global iron supply can be difficult because data on recycled iron is often encompassed within broader steel recycling statistics. According to the United Nations Environment Programme, iron has an end-of-life recycling rate of 70-90%. As of 2023, about 78% of steel produced annually worldwide is primary production, from secondary production using recycled materials. This split, however, varies significantly by region. In China, around 90% of steel is still produced via primary routes. In contrast, North America leans heavily on secondary steelmaking, with roughly 70% of its annual production coming from recycled scrap. Other major producers like India and the European Union show a more balanced mix between primary and secondary production.

Looking ahead to meet climate targets, the share of secondary iron on the market is projected to rise to 45–50% by 2050, driven by increased scrap availability and the expansion of electric arc furnace (EAF) capacity. However, it is important to note that EAF adoption in the key emerging markets is expected to fall from 38% to 24% by 2050, reflecting limited enforcement of carbon reduction targets and continued access to inexpensive iron ore, which together reduce incentives for iron recycling.