Japan's metal recycling market was valued at US$15.57 billion as of 2025 and is forecast to expand to US$22.03 billion by 2034. The Japan Iron and Steel Federation has set a target of increasing domestic scrap circulation by 6.9 million tonnes by 2030.
Japan's metal recycling market was valued at approximately US$15.57 billion as of 2025 and is forecast to expand at a compound annual growth rate of 3.79% from 2026 to 2034, reaching approximately US$22.03 billion in 2034. The market is supported by rising scrap demand and increased investment. The Japan Iron and Steel Federation has set a target of increasing domestic scrap circulation by approximately 6.9 million tonnes by 2030.
Steel is expected to account for a 45.2% market share as of 2025, with automotive at 32.7% and leading major sectors. Steel is dominant due to Japan's domestic steel stock and the spread of electric arc furnace mini-mills. The Kanto region has a 38.4% regional share, supported by the Tokyo metropolitan area's dense industrial base and export networks.
Market trends include an accelerating shift from coal-based blast furnaces to electric furnaces (EAFs) using scrap as feedstock. Nippon Steel plans to invest approximately ¥870 billion in converting its Kyushu Works to electric furnaces and to produce 2.9 million tonnes of recycled steel from fiscal 2029 onward. The government is expanding decarbonization measures, including subsidies for CEVs, under the GX Promotion Act, while advancing scrap sorting using digital separation and AI. Demand is also increasing for the recovery of lithium, nickel and other materials from EV batteries.
Recent developments include DOWA Electronics Materials receiving a supplier award from Murata Manufacturing. Nippon Steel's electric furnace investment and government subsidies, as well as measures to promote the adoption of green steel, are continuing. Through analysis by region and segment, the market is seeing increased efforts to identify future investment opportunities and the competitive landscape.