U.S. Copper Scrap Market (By Application: Wire Rod Mills, Brass Mills, Ingot Makers, Foundries & Other Industries) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The U.S. copper scrap market was estimated at USD 0.69 billion in 2022 and it is expected to surpass around USD 1.08 billion by 2032, poised to grow at a CAGR of 4.54% from 2023 to 2032.

Key Pointers

• The wire rod mills segment accounted for a revenue share of over 26% in 2022 and is likely to grow at a lucrative pace in the coming years
• Based on application, the brass mills segment is projected to progress at a substantial CAGR of 4.84%, in terms of revenue, from 2023 to 2032.

Report Scope of the U.S. Copper Scrap Market

The market is expected to be driven by the rising electrification of vehicles, amidst global pressure to reduce greenhouse gas emissions. Electric vehicles require 3 to 4 times more copper compared to internal combustion engine (ICE) vehicles. Copper has significant importance in the production of electric vehicles (EVs) and related infrastructure. The focus on lowering carbon emissions through alternative energy sources has gained top priority in the U.S. and other countries around the world. EVs have the potential to reduce greenhouse gas emissions and thus aid in the goal of achieving a carbon-neutral economy.

Copper exhibits the highest conductivity after silver. With the advent of battery-powered and hybrid electric vehicles, the amount of copper wiring in the components of automobiles has increased at a greater pace. There are various types of EVs, which require more copper content than ICE vehicles. Copper is used in batteries, windings, busbars, wiring, electric motors, and charging infrastructure.

In 2020, the temporary suspension of industrial activities due to the COVID-19 pandemic impacted both primary and secondary (scrap) copper businesses. This affected the copper supply, ultimately resulting in a shortage of copper scrap and a hike in copper prices, reaching an all-time high of USD 10,000 per ton in 2021. In the U.S., copper production declined by nearly 5% in 2020 amidst the pandemic.

In 2022, nearly 160 kilotons of the overall copper scrap were produced from old resources i.e., post-consumer scrap, while 670 kilotons of copper scrap were recovered from industrial fabrication operations in the U.S. Copper scrap accounted for a share of 32% of the total copper supply in the U.S. The key driving factors for the U.S. copper scrap industry include the rapid adoption of electric vehicles (EVs), solar panels, and 5G technology.

The U.S. copper scrap market has the presence of several companies with a strong base in North America and other parts of the world. The competition is expected to rise over the coming years, as companies are focusing on various inorganic growth strategies such as joint ventures and mergers & acquisitions. For instance, in February 2021, the joint venture of Prime Materials Recovery, Inc. and the Spanish CuNext Group - the Ames Copper Group - announced the construction of a copper recycling facility that produces copper anodes from copper scrap and fines.

Application Insights

The wire rod mills segment accounted for a revenue share of over 26% in 2022 and is likely to grow at a lucrative pace in the coming years. Wire rod mills use copper scrap for mainly producing wires, which are further used in electrical applications. With the help of cold drawing and a series of dies, wires are produced at these mills. The individual wires then are insulated or stranded depending on their intended end-use application, such as cable assemblies.

Investments in new copper mills are projected to benefit the market. For instance, in May 2020, Southwire Company, LLC installed a copper wire rod mill at its Carrollton plant in the U.S. The company has acquired the SCR-9000S copper rod mill from Primetals Technologies. This mill can produce electrolytic tough-pitch copper rods for electrical cables and wire applications, with an annual capacity of 353 kilotons.

Brass mills melt and produce alloy materials to further manufacture sheets, tubes, strips, rods, bars, forgings, extrusions, and mechanical wires. Nearly half of the copper input in these mills is obtained from copper scrap. Fabrication processes such as extrusion, cold rolling, hot rolling, and drawing are employed to convert melted and cast feedstock into the final mill products.

Copper or brass radiators are a major source of copper scrap for ingot producers, captive foundries, and brass mills. These materials also have significant amounts of copper, tin, lead, and zinc, which help in producing red-brass or semi-red brass alloy ingots. Nearly 50% of these alloy ingots are used in plumbing and fittings in the U.S. As per the Copper Development Association Inc., nearly 50,000 tons of radiators are recycled each year to produce red-brass alloy ingots.

U.S. Copper Scrap Market Segmentations:

By Application 

• Wire Rod Mills
• Brass Mills
• Ingot Makers
• Foundries and Other Industries