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2024: Ferrous Scrap Market Shrank 21% to 17.7 Mt for the Year
Visible consumption of ferrous scrap in Russia in 2024 decreased by 21% and amounted to 17.7 million tons against 22.5 million tons a year earlier. Such data were published on February 25, 2025 by the Руслом.ком Association of Scrap Collectors.
According to Interfax, in 2025 the volume of consumption of ferrous scrap in Russia will continue to decline. According to forecasts of the Руслом.ком association, the indicator may decrease to 12-13.8 million tons, which means a drop of 26-33% compared to the results of 2024.
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The director of the association, Viktor Kovshevny, noted that the dynamics of the decrease in scrap consumption will largely depend on the scale of its replacement with substitutes, such as hot briquetted iron (HBI), hot iron (GH) and cast iron. According to him, the peculiarity of Russia lies in the presence of large reserves of iron ore, which makes the use of CL, HBI and cast iron competitive compared to scrap metal.
Compared to 2021, when the consumption of ferrous scrap was 26.6 million tons, the decline in 2024 reached 34%. The experts of the association calculated that if the ratio for the use of scrap in the production of steel remained at the level of 2021, then the consumption of this type of raw material in 2024 could amount to 24.3 million tons.
Statistics also show a decrease in the volume of scrap collection of ferrous metals in Russia in 2024 by 17.5% to 19.9 million tons compared to 24.1 million tons in 2023. Compared to 2021, when the figure reached 30.1 million tons, the fall was 34%. For 2025, the Руслом.ком Association predicts a further decrease in the indicator to 16 million tons.
The share of exports of ferrous scrap outside the EAEU countries in 2024 amounted to 5.5%, which is higher than in 2023 (4.5%) and 2022 (1.9%), but lower than in 2021 (10.7%).[1]
2023: Growth in ferrous metal consumption to 56.3 million tonnes
At the end of 2023, domestic consumption of ferrous metals in Russia reached 56.3 million tons. Industry trends are considered in a study by the consulting company Yakov & Partners, the results of which were published in early December 2024.
The report says that the Russian steel industry managed to compensate for the 11 million tons of export steel that fell in 2021-2023 by increasing domestic consumption and reducing imports. At the same time, the potential to maintain the sustainability of the industry in both monetary and physical terms is under pressure.
In 2023, according to estimates, in the total volume of steel consumption in the Russian Federation, about two-thirds - 66% - accounted for construction. Another 24% was the contribution of mechanical engineering, and the remaining 10% fell on the electric power industry. For comparison, in Europe these shares are 36%, 54% and 10%, respectively, in China - 41%, 47% and 12%.
The report notes that steel consumption in Russia without a structural change in the economy until 2030 may grow by 1.2-2.7 million tons. The largest increase in steel consumption - 0.8-0.9 million tons - can be ensured by the production of railway cars. Another 0.5 million tons will fall on projects for the development of railways. Approximately 0.3-0.5 million tons will be the contribution of the pipe industry, 0.2 million tons - the automotive sector.
 | However, this growth is temporary, as it depends on the implementation of individual infrastructure projects in the energy sector and on other short-term factors of increased demand for steel products. Given these long-term trends, companies need to develop competitive strategies to stabilize their operating and financial activities, the authors of the study emphasize.[2] |  |
2022:25% market decline to 19.9 Mt
At the end of 2022, the consumption of ferrous scrap in Russia amounted to 19.9 million tons, which is 25% more than a year ago. Such data in January 2023 was published by the Association of Scrap Collectors "Руслом.ком."
According to the statistics of the association cited by Vedomosti, scrap mining in the Russian Federation in 2022 decreased by 32% to 20.4 million tons, and exports outside the EAEU (including Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia) decreased 8.4 times to 384,000 tons.
Viktor Kovshevny, director of the Руслом.ком industry association, told the newspaper that scrap consumption fell due to a decrease in steel smelting in Russia and a decrease in the share of scrap in metal production. At the same time, exports were practically inaccessible due to barrage export duties, low prices and a significant increase in the cost of freight and transshipment at ports. As a result, scrap collection has been greatly reduced, he added.
In the first 11 months of 2022, the volume of steel production in the Russian Federation decreased by 7% on an annualized basis, to 65.9 million tons. This is evidenced by data from the World Steel Association (Worldsteel).
Deputy Minister of Industry and Trade Viktor Yevtukhov told the publication that restrictions on the export of ferrous scrap in 2022 could not lead to a decrease in scrap collection by 30%. According to him, this market was previously small: scrap exports outside the EAEU in 2021 amounted to 13% (2.6 million tons) of the total scrap collection of 30 million tons. Since August 2022, there has been a complete restoration of collection and its shipment to metallurgical enterprises, Yevtukhov added.
The deputy minister recalled that prices for the entire range of metal products decreased by 36-39%. According to him, measures to regulate the export of ferrous scrap have reduced the cost of scrap in the domestic market by 33%.[3]
2015: 8.1% market decline to 68,657 kt
The volume of the ferrous scrap market in Russia in 2015 amounted to 68,657 thousand tons in physical terms, which is 8.1% less than in 2014. The volume of the non-ferrous metal scrap market in Russia in 2015 amounted to 3,122 thousand tons in physical terms, which is 18.4% more than in 2014. The main share in the scrap market of ferrous and non-ferrous metals is domestic production.
The total volume of ferrous scrap produced in Russia in 2015 amounted to 73,651 thousand tons, which is 8% less than in 2014. The largest share in the volume of black scrap in 2015 was occupied by turning chips, trimmings, etc. - 79%.
In 2015, 3,119 thousand tons of colored scrap were formed, which is 18% more than in 2014. The largest share in the volume of non-ferrous scrap in 2015 is occupied by waste and scrap of copper metals - 44%.
In 2015, the most black scrap was formed in the Ural Federal District - 34%. In 2015, the Ural Federal District also leads in the overall structure of the formed colored scrap - 35%.
The leading entity for the formation of black scrap metal in 2015 was the Sverdlovsk region - 22%. This is followed by the Chelyabinsk region - 11%. Closes the top three Vologda Oblast - 8%.
The leading entity for the formation of non-ferrous scrap metal in 2015 was the Sverdlovsk region - 29%. In second place is the Samara region - 7%. In third place is the Moscow region - 5%.
- According to DISCOVERY Research Group, a marketing agency
Notes
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