# Circular economy of metals

Markdown version of https://bluegreenmaterials.com/en/circular-economy-of-metals. Updated on 2026-11-12.

A circular economy is a system in which materials do not become waste: they stay in use and go back into production. With metals this already happens at scale, because they are melted and used again without losing their properties. In Mexico, 95.9% of 2025 steel was made in electric furnaces, which can run on scrap alone, and since January 2026 a General Law on Circular Economy is in force.

## What a circular economy is

The Ellen MacArthur Foundation defines it as a system where materials never become waste and nature is regenerated. It is the opposite of the linear economy, in which materials are extracted, made into products and finally thrown away[^circular-emf]. It has three principles, all driven by design[^circular-emf]:

- **Eliminate waste and pollution.**
- **Circulate products and materials at their highest value**, through maintenance, reuse, refurbishment, remanufacture, recycling and composting.
- **Regenerate nature.**

Mexico's General Law on Circular Economy (Ley General de Economía Circular) starts from the same basis: it defines it as a sustainable production and consumption model with three guiding principles, eliminating waste and pollution, keeping products and materials in use and regenerating natural systems. It also sets an order of priority[^circular-lgec]:

1. Materials stay as long as possible as a product or as a secondary raw material.
2. Products incorporate recycled materials, recyclable materials or both.
3. Waste is reincorporated by recovering its value or its energy content.
4. Only what cannot be used or recovered in a technically and economically viable way goes to final disposal.

## Why metals are recycled again and again

worldsteel describes steel as a permanent material: it is 100% recyclable, can be recycled infinitely without loss of quality and its magnetism makes it easy to separate[^ws-facts]. Aluminum can be recycled repeatedly with no theoretical limit[^aluminio-aa-reciclaje], and copper is recycled without loss of performance or properties[^cobre-ica-reciclaje].

- **85%**: of construction steel is recovered at end of life, according to worldsteel's global estimate[^ws-facts]
- **90%**: of vehicle steel is recovered[^ws-facts]
- **90%**: of machinery steel is recovered[^ws-facts]
- **50%**: of steel in electrical and domestic appliances is recovered[^ws-facts]

Nearly 75% of all the aluminum ever produced is still in use[^aluminio-aa-reciclaje], and of the 690 million tonnes of copper produced in the last hundred years, two thirds are still in productive use[^cobre-ica-reciclaje].

Not all metals are recovered equally. A study by the UN International Resource Panel, with data mostly from 2000 to 2005, estimated that of some 60 metals only 18 have an end of life recycling rate above 50%; among them iron, aluminum, copper, lead, nickel, tin and zinc. Another 34 elements are recycled at less than 1%[^circular-unep].

## Steel recycling in figures

In 2022 the industry recycled between 650 and 700 million tonnes of steel in the form of scrap and, according to worldsteel, avoided around 1,000 million tonnes of CO₂ compared with making that steel from ore. On average, new steel products contain 30% recycled steel[^ws-facts].

Metal goes back to the furnace when the product's life ends. In buildings and infrastructure that can take 200 years or more; in vehicles, 15 to 20 years; in packaging, a few weeks[^ws-facts]. In 2025 the world produced 1,848.9 million tonnes of crude steel, 30.3% in electric furnaces[^ws-figures]. See [the impact of recycling steel](https://bluegreenmaterials.com/en/impact).

## The scrap chain, from generator to mill

Scrap has three origins[^circular-unep]:

- **Home scrap**: Generated during fabrication and fed straight back into the process that generated it. It is not counted in recycling statistics[^circular-unep].
- **New or prompt scrap**: Comes from fabrication or manufacturing, such as offcuts, stampings and turnings. It is usually high purity and high value[^circular-unep].
- **Old or obsolete scrap**: Products at the end of their life: structures, machinery, vehicles, ships. Recovering it takes more effort, especially when the metal is a small part of a complex product[^circular-unep].

1. **Generation**: A plant, a construction site, a dismantling job or the end of a piece of equipment's life produces the material.
2. **Separation**: It is sorted by metal and grade: a magnet pulls out the steel and copper, plastics and other materials are removed. Copper left in steel scrap ends up inside recycled carbon steel and is lost as copper[^circular-unep].
3. **Collection and preparation**: It is weighed, cut, baled or shredded so it fits in the furnace and travels with less volume.
4. **Transport**: It travels with a CFDI invoice and a Carta Porte waybill to the mill or foundry. See [scrap regulation](https://bluegreenmaterials.com/en/regulation).
5. **Melting**: An electric arc furnace can be charged with 100% scrap; a basic oxygen furnace, with up to 30%[^ws-facts].
6. **New product**: The metal comes back as rebar, sheet, sections or parts, and at the end of its life it returns as scrap.

## Mexico: electric furnace steel and a new law

- **13.5 Mt**: of crude steel produced by Mexico in 2025[^ws-figures]
- **95.9%**: of that steel came from electric furnaces, against 30.3% worldwide[^ws-figures]
- **1.6 Mt**: of ferrous scrap exported by Mexico in 2025[^ws-figures]
- **1.4 Mt**: of ferrous scrap imported by Mexico in 2025[^ws-figures]

In 2024 the balance ran the other way: Mexico exported 1.2 million tonnes of ferrous scrap and imported 2.3 million[^ws-figures]. Its NDC 3.0, from 2025, lists among the lines of action for steel to **increase the use of scrap as an input** and to promote high efficiency electric arc furnaces[^kioto-ndc3]. See [the Kyoto Protocol and the Paris Agreement](https://bluegreenmaterials.com/en/kyoto-protocol-and-paris-agreement).

**The rules that touch scrap in Mexico**

| Instrument | What it sets out |
| --- | --- |
| Ley General de Economía Circular (Official Gazette, January 19, 2026) | Defines the circular economy and creates extended producer responsibility: productive sectors and importers organize and, where applicable, finance circular economy schemes for their products. SEMARNAT sets how it applies by sector or product, through general implementation agreements. The regulation was due within 180 calendar days of its entry into force[^circular-lgec]. |
| Ley General para la Prevención y Gestión Integral de los Residuos | Non hazardous waste from production processes is special handling waste. It defines recovery and recycling, and requires a management plan from large generators (10 t or more a year) of the waste listed in the standards[^lgpgir]. |
| Mexico's NDC 3.0 (2025) | Besides the lines for steel, it plans to publish the General Law on Circular Economy and to strengthen extended producer responsibility[^kioto-ndc3]. |

## What your company can do

- **Sort at source, by metal and by grade.** Copper mixed into steel scrap is lost inside the steel[^circular-unep]. See [copper scrap](https://bluegreenmaterials.com/en/copper-scrap), [aluminum scrap](https://bluegreenmaterials.com/en/aluminum-scrap) and [bronze and brass](https://bluegreenmaterials.com/en/bronze-and-brass-scrap).
- **Do not mix it with trash or hazardous waste.** Metal with spent oils or a container that held hazardous materials follows other rules. See [regulation](https://bluegreenmaterials.com/en/regulation).
- **Weigh and document.** The scale ticket, the CFDI and the Carta Porte show how much metal left and where it arrived.
- **Ask for proof of destination.** To report what your recycling avoids, the GHG Protocol asks you to show the material was collected, recycled and used[^ghg-scope3]. See [scope 3: waste and recycling](https://bluegreenmaterials.com/en/scope-3-waste-and-recycling).
- **Check whether you need a management plan.** If you generate 10 t or more a year of the waste listed in the standards, you must have one[^lgpgir].
- **Dismantle what you no longer use.** Structures, machinery and vessels out of service are obsolete scrap. See [industrial dismantling](https://bluegreenmaterials.com/en/industrial-dismantling) and [ship recycling](https://bluegreenmaterials.com/en/ship-recycling).

## How Bluegreen takes part

Bluegreen buys ferrous and non ferrous scrap in every state of Mexico and dismantles structures and vessels. Each lot ends in a certificate with a folio, verifiable online, stating the net avoided CO₂e: it counts what reached the mill, the lower of the origin and destination net weights, and subtracts each haul's emissions. It is not a carbon credit and cannot be sold or transferred; the current factor set is preliminary. See [how it is calculated](https://bluegreenmaterials.com/en/impact-methodology), [how to sell scrap metal](https://bluegreenmaterials.com/en/sell-scrap-metal) and [steel and scrap](https://bluegreenmaterials.com/en/steel).

## Frequently asked questions

### What is a circular economy in simple terms?

A system in which materials do not become waste: they are maintained, reused, refurbished, remanufactured or recycled so they stay in the economy, and nature is regenerated[^circular-emf].

### What is the difference between recycling and a circular economy?

Recycling is one part of it. Mexican law puts first keeping materials as products for as long as possible, then products using recycled materials, then recovering the value of waste and, last, disposal[^circular-lgec].

### Do metals lose quality when recycled?

Steel can be recycled infinitely without loss of quality[^ws-facts], copper is recycled without loss of performance[^cobre-ica-reciclaje] and aluminum has no theoretical recycling limit[^aluminio-aa-reciclaje]. What does matter is mixing: copper left in steel scrap is lost inside the steel[^circular-unep].

### How much steel is recycled worldwide?

In 2022, between 650 and 700 million tonnes, and new steel products contain 30% recycled steel on average[^ws-facts].

### Is there a circular economy law in Mexico?

Yes. The General Law on Circular Economy was published in the Official Gazette on January 19, 2026 and entered into force the next day. It creates extended producer responsibility and leaves the details to a regulation, implementation agreements and a national programme[^circular-lgec].

### Why does scrap matter in Mexico?

Because 95.9% of the steel made in Mexico in 2025 came from electric furnaces[^ws-figures], which can be charged with 100% scrap[^ws-facts]. The NDC 3.0 includes increasing the use of scrap in steel production[^kioto-ndc3].

### Where can I sell my scrap so it gets recycled?

Bluegreen buys ferrous and non ferrous scrap in every state of Mexico. See [how to sell scrap metal](https://bluegreenmaterials.com/en/sell-scrap-metal) and [scrap metal prices](https://bluegreenmaterials.com/en/scrap-metal-prices).

## Sources

[^circular-emf]: Ellen MacArthur Foundation, «Circular economy introduction: overview» (2026). https://www.ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview
[^circular-lgec]: Cámara de Diputados, leyes federales vigentes, «Ley General de Economía Circular (DOF 19-01-2026), arts. 3, 4, 10, 36 y 37 y transitorios» (2026). https://www.diputados.gob.mx/LeyesBiblio/pdf/LGEC.pdf
[^ws-facts]: World Steel Association (worldsteel), «#SteelFacts, June 2026 update» (2026). https://worldsteel.org/wp-content/uploads/SteelFacts_update-June-2026.pdf
[^aluminio-aa-reciclaje]: The Aluminum Association, «Sustainability: Recycling» (2026). https://www.aluminum.org/Recycling
[^cobre-ica-reciclaje]: International Copper Association (ICA), «Copper Recycling, policy brief with ICA and Fraunhofer ISI data for 2009 to 2018» (2021). https://internationalcopper.org/wp-content/uploads/2022/02/ICA-RecyclingBrief-202201-A4-R2.pdf
[^circular-unep]: International Resource Panel (UNEP), «Recycling Rates of Metals: A Status Report (Graedel et al.), data mostly from 2000 to 2005» (2011). https://resourcepanel.org/reports/recycling-rates-metals
[^ws-figures]: World Steel Association (worldsteel), «World Steel in Figures 2026» (2026). https://worldsteel.org/wp-content/uploads/World-Steel-in-Figures-2026.pdf
[^kioto-ndc3]: Secretaría de Medio Ambiente y Recursos Naturales (SEMARNAT), «Actualización de la Contribución Determinada a nivel Nacional 3.0 de México (NDC 3.0), con la participación del INECC» (2025). https://unfccc.int/sites/default/files/2025-11/NDC%203.0%20Me%CC%81xico_spanish.pdf
[^lgpgir]: Cámara de Diputados, leyes federales vigentes, «Ley General para la Prevención y Gestión Integral de los Residuos» (vigente). https://www.diputados.gob.mx/LeyesBiblio/pdf/LGPGIR.pdf
[^ghg-scope3]: GHG Protocol (WRI and WBCSD), «Technical Guidance for Calculating Scope 3 Emissions, version 1.0, category 5» (2013). https://ghgprotocol.org/sites/default/files/2023-03/Scope3_Calculation_Guidance_0%5B1%5D.pdf