Europe Steel Recycling Market Set for Major Growth Through 2033
Europe’s steel recycling market will grow from 84 to 121.5 million tons by 2033, driven by EAF expansion and green steel demand.
Pune, Maharashtra, India, 26th Feb 2026 – The European Steel Recycling Market is entering a significant growth phase as the region’s steel industry experiences one of its most substantial structural changes in decades. According to Mark and Spark, the market consumed 84 million metric tons in 2024 and is projected to rise to 121.5 million metric tons by 2033, reflecting a compound annual growth rate (CAGR) of 4.4%. This increase is driven by investments in electric arc furnace (EAF) capacity, the adoption of direct reduced iron (DRI), and a growing emphasis on sustainable, low-carbon steel production.
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Structural Transformation and Decarbonization
Europe’s leading steel producers have invested over €30 billion to retire outdated blast furnaces and replace them with scrap-intensive Electric Arc Furnace (EAF) and Direct Reduced Iron (DRI) systems. This transition is not just a small adjustment; it represents a complete redesign of steel manufacturing processes, focusing on reducing carbon emissions and increasing the use of recycled materials.
EAFs primarily rely on ferrous scrap as their main feedstock, ensuring a steady demand for steel recycling. DRI units also use scrap to optimize metallic charge mixes, further strengthening the use of recycled steel. The growth of “green steel” initiatives in the automotive, construction, and appliance industries is increasingly positioning recycled content as a crucial market differentiator.
Advanced Recycling Technologies and Supply Chain Modernization
As demand for higher-quality scrap increases, recyclers are investing in advanced sorting, shredding, and pre-treatment technologies to comply with stricter requirements for chemical composition and traceability. These technological improvements enhance efficiency, reduce contamination, and bolster the competitiveness of European scrap in both domestic and export markets.
Governments and industry stakeholders are placing a greater emphasis on retaining scrap domestically to meet climate objectives. Incentives for local processing, stricter environmental standards, and potential export controls are reshaping steel-recycling supply chains. As a result, recyclers are experiencing higher utilization rates and improved pricing power.
Country Export Shares and Global Trade
Europe remains a key global supplier of ferrous scrap, with Germany leading exports, accounting for approximately 20% of total volumes. Other significant contributors include France, the Netherlands, Belgium, Poland, Sweden, and Italy. Notably, the Netherlands acts as a strategic redistribution hub for shipments to Turkey, North Africa, and Asia.
As domestic demand for scrap increases due to the expansion of Electric Arc Furnace (EAF) operations, Europe’s established export networks continue to bolster global supply. There is a growing demand for high-quality, well-sorted scrap from international buyers, driving investments in sensor-based sorting, traceability systems, and quality-enhancement technologies.
Pricing Trends and Market Outlook
The price of recycled steel scrap is expected to rise steadily over the next decade. Starting at USD 380 per ton in 2023, prices are projected to reach USD 450 per ton by 2026 and USD 480 per ton by 2027. This upward trend is influenced by tightening supply conditions, increasing domestic consumption, and heightened demand from green steel initiatives.
As investments in infrastructure, logistics, and recycling technologies continue, Europe’s steel recycling market is set for sustained growth. This market is becoming increasingly vital for achieving decarbonization goals and supporting the continent’s long-term industrial competitiveness.
Strategic Implications
The European Steel Recycling Market offers significant opportunities for investors, manufacturers, and recyclers who embrace sustainability trends and comply with regulatory standards. Companies that incorporate advanced recycling technologies, optimize their supply chains, and focus on producing high-quality scrap will be best positioned to gain value in this rapidly evolving market.With strong growth prospects, regulatory support, and increasing demand for green steel, the European steel recycling sector is poised to play a crucial role in shaping the continent’s industrial landscape through 2033.
Company Details
Organization: Mark & Spark Solutions
Contact Person: Jasmine
Website: https://marksparksolutions.com/
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Contact Number: +15853741088
Address: 3rd Floor, Panchsheel Park Rd, nr. Gaikwad Petrol Pump, Shambhu Vihar Society, Baner Chs, Aundh, Pune, Maharashtra 411062
City: Pune
State: Maharashtra
Country: India
Release Id: 26022641975