Lebanon Scrap Metal Market: Trade Structure, Regional Corridors, and Macroeconomic Dynamics
Executive Summary & Macroeconomic Context
The scrap metal and recycling sector in Lebanon functions as an export-oriented, secondary material supply engine within the Eastern Mediterranean. Lacking active primary blast furnaces or large-scale Electric Arc Furnace (EAF) steel melt shops, Lebanon’s domestic industrial base cannot absorb the volume of metallic waste generated internally. Consequently, the Lebanese market operates as a collection, mechanical processing, and seaborne export pipeline that converts post-consumer and industrial waste into foreign currency revenues.
Under Harmonized System code HS 7204 (Ferrous waste and scrap; remelting scrap ingots of iron or steel), Lebanon ranks among the notable net exporters of scrap iron relative to its national economic scale. In 2024, Lebanon exported $218 million worth of ferrous scrap, placing it as the 38th largest exporter globally with a 0.49% share of world scrap iron exports. Within Lebanon's national economy, ferrous scrap represents the 3rd most exported commodity product overall.
Conversely, inbound scrap iron imports into Lebanon are minimal, totaling just $99.4 thousand in 2024 (sourced primarily from Australia at $59.4 thousand and Italy at $40 thousand). This creates a net trade surplus in ferrous scrap of over $217.9 million annually. In the context of domestic financial and currency pressures, this export surplus serves as a key source of US dollar liquidity for local trading enterprises, scrap aggregators, and port logistics operators.
| Trade & Macroeconomic Parameter | Quantitative Value (2024) | Operational Context & Industry Role |
|---|---|---|
| Ferrous Scrap Exports (HS 7204) | $218.00 Million | 38th largest exporter globally; 0.49% global export share |
| Ferrous Scrap Imports (HS 7204) | $99.40 Thousand | 119th largest importer globally; minimal domestic melt feed |
| Net Ferrous Scrap Trade Surplus | +$217.90 Million | Ranks as the 3rd most exported product category in Lebanon |
| Primary Export Market (#1 Buyer) | Egypt ($179.00 Million) | Captures 82.1% of total Lebanese scrap exports |
| Secondary Export Market (#2 Buyer) | Turkey ($33.00 Million) | Captures 15.1% of total Lebanese scrap exports |
| Economic Complexity Rank (Lebanon) | Ranked 49th of 130 | ECI score of 0.25 |
Industrial Structure and Sourcing Dynamics
The domestic supply chain for scrap metal in Lebanon is powered by urban demolition, infrastructure recovery, industrial maintenance, and End-of-Life Vehicles (ELVs). Sourcing channels center around urban centers, including Greater Beirut, Tripoli, Sidon, and Tyre.
Key material streams include:
- Heavy Melting Scrap (HMS 1&2): Structural steel beams, thick plate offcuts, and rebar recovered from demolition and infrastructure projects.
- Light Melting Scrap & Baled Bundles: Discarded consumer appliances, automotive body trimmings, and light sheet metal compressed into high-density bales for furnace charging.
- Specialized Alloy & Stainless Steel Streams: Secondary stainless steel turnings and solid scrap (such as Grade 304/316) generated by industrial fabrication workshops.
Because domestic steelmakers operate limited rolling capacity, local scrap merchants process raw material for ocean export. Companies such as AKS (AKS for Trading) lead the domestic scrap industry, collecting, sorting, shearing, and baling local metallic waste across regional yards before moving material to coastal ports.
Seaborne Export Corridors and Destination Analysis
Outbound seaborne trade from Lebanon relies on primary maritime gateways at the Port of Beirut and the Port of Tripoli. Bulk cargo ships and containerized freight networks transport processed scrap across short-sea Mediterranean routes and deep-sea oceanic corridors.
| Export Partner Jurisdiction | 2024 Trade Value (USD) | Export Share (%) | Industrial End-Users & Logistics Drivers |
|---|---|---|---|
| Egypt | $179,000,000 | 82.11% | Primary buyer; feeds Ezz Steel, Suez Steel, & Beshay Steel EAFs |
| Turkey | $33,000,000 | 15.14% | Regional Mediterranean EAF hub (Iskenderun & Marmara mills) |
| India | $2,570,000 | 1.18% | Containerized HMS and alloy scrap for induction furnaces |
| Netherlands | $2,250,000 | 1.03% | European transshipment and secondary refining hub |
| South Korea | $1,310,000 | 0.60% | Secondary alloy and specialized steel melting charge |
1. The Egypt Trade Axis ($179 Million)
Egypt represents the dominant destination for Lebanese ferrous scrap, absorbing $179 million in 2024. This concentration is driven by Egypt's position as Africa's largest steel producer, where Electric Arc Furnaces (operated by Ezz Steel, Suez Steel, Beshay Steel, and Egyptian Steel) require heavy volumes of imported scrap. Short-sea transit times across the Eastern Mediterranean allow Lebanese exporters to maintain reliable shipping schedules and competitive ocean freight costs into Egyptian ports such as Dekheila (Alexandria) and Ain Sokhna.
2. The Turkey Trade Axis ($33 Million)
Turkey constitutes the second largest destination, purchasing $33 million worth of Lebanese scrap iron in 2024. As the world's leading seaborne scrap importer, Turkish coastal EAF steelmakers in Iskenderun and the Marmara Sea basin consume bulk HMS 1&2 and shredded scrap to produce construction rebar and flat-rolled steel.
3. Secondary Oceanic Outlets
The remaining 3% of Lebanese scrap exports are routed to Asian and European buyers, led by India ($2.57 million), the Netherlands ($2.25 million), and South Korea ($1.31 million). Containerized exports to India supply induction furnace operators in regional manufacturing hubs.
Strategic Outlook and Market Conclusions
Lebanon's scrap metal market is structured around an export-driven model. Generating a net trade surplus of $217.9 million in ferrous scrap, the sector provides a mechanism for converting domestic waste into foreign exchange.
Key market factors shaping the sector include:
- Dependence on Regional EAF Capacity: Because 97% of Lebanese scrap exports are absorbed by Egypt and Turkey, domestic scrap valuations remain directly tied to operating rates, energy costs, and rebar demand across these two markets.
- Maritime Port Infrastructure: Maintaining operational efficiency at the ports of Beirut and Tripoli is essential for supporting bulk scrap loading and containerized shipments.
- Formalization and Processing Quality: Continued investment in automated shears, balers, and non-ferrous separation tools will allow Lebanese processors to improve scrap density and meet strict quality specifications required by international steelmakers.