Scrap pile: An oversupply of metals will hurt industry revenue growth

The Scrap Metal Recycling industry collects and processes both ferrous (iron-based) and nonferrous metals. Recycling typically involves sorting, shearing, shredding and torching the metal before selling it to steel mills, foundries and other industrial consumers, which then use it as an input for their products. Metal recycling has become more popular over the past few decades because it offers energy savings and cost benefits when compared with primary production, which requires extracting metals from mined ores. Despite these advantages, industry operators have experienced losses over the past five years due to the cyclical nature of metal prices on world markets...purchase to read more.

Industry Statistics & Market Size
Revenue
$39bn
Annual Growth 13-18
-2.3%
Forecast Growth 18-23
Profit
Employment
36,305
Businesses
1,456
Market Share of Companies

Industry Threats & Opportunities

  • Despite the rising use of scrap metal, volatile input prices will stifle industry revenue growth
  • High global supply and slowing demand from emerging markets have pressured metal prices
  • Industrial production and construction activity are expected to rise, driving industry demand
  • Industry Report - Industry Products Chapter

    The Scrap Metal Recycling industry recycles both ferrous (iron and steel) metals and nonferrous metals. Ferrous metals are highly recyclable as they do not lose chemical or physical properties when recycled and, therefore, have no limit to how many times they can go through the recycling process. Nonferrous metals, such as aluminum, copper and lead, are found in consumer and industrial goods and also lend well to recycling.Iron and steel scrap recyclingIron and steel are estimated to account for 38.3% of industry revenue, with the majority being composed of steel scrap. The primary sources of steel scrap are cars, structural steel, appliances, and reinforcement steel and steel cans. All...purchase to read more.

    Additional Insights for the Scrap Metal Recycling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Scrap Metal Recycling Industry are

  • Ability to negotiate successfully with regulator
  • Economies of scale
  • Having a diverse range of clients
  • IBISWorld analysts also discuss how external factors such as World price of steel and Price of nonferrous metals in the Scrap Metal Recycling industry impact industry performance..

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    What's in this report

    What is the Scrap Metal Recycling Industry?

    Operators in this industry are engaged in the collection, processing and recycling of ferrous metals, such as iron and steel, and nonferrous metals, such as aluminum, copper and nickel. The typical recycling process involves sorting, shearing, shredding, torching and baling scrap metal to be sold to downstream metal smelters for further processing.

    Industry Products
  • Iron and steel scrap recycling
  • Aluminum scrap recycling
  • Copper scrap recycling
  • Other non-ferrous metals scrap recycling
  • Lead scrap recycling
  • Industry Activities
  • Recycling steel and iron scrap
  • Recycling copper scrap
  • Recycling aluminum scrap
  • Recycling lead scrap
  • Recycling other nonferrous scrap metals
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of steel
  • Price of nonferrous metals
  • Trade-weighted index
  • GDP of mainland China

  • Current Performance
  • The importance of scrap metal
  • Global commodity prices
  • Profit and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Key markets
  • Price improvements
  • Table: Scrap Metal Recycling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Scrap Metal Recycling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Iron & Steel Manufacturing
  • Metal Pipe & Tube Manufacturing
  • Aluminum Manufacturing
  • Nonferrous Metal Refining
  • Nonferrous Metal Rolling & Alloying
  • Ferrous Metal Foundry Products
  • Nonferrous Metal Foundry Products Manufacturing
  • Wire & Spring Manufacturing
  • Recyclable Material Wholesaling

  • Key Selling Industries
  • Aircraft, Engine & Parts Manufacturing
  • Boat Building
  • Construction Machinery Manufacturing
  • Consumers
  • Ship Building
  • Space Vehicle & Missile Manufacturing
  • Tractors & Agricultural Machinery Manufacturing
  • Train, Subway & Transit Car Manufacturing
  • Wired Telecommunications Carriers

  • Products & Services
  • Iron and steel scrap recycling
  • Aluminum scrap recycling
  • Copper scrap recycling
  • Other non-ferrous metals scrap recycling
  • Lead scrap recycling
  • Chart: Scrap Metal Recycling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Manufacturing industries
  • Construction industries
  • Export markets
  • Chart: Major Market Segmentation for the Scrap Metal Recycling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Scrap Metal Recycling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Scrap Metal Recycling Industry

  • Industry Globalization
    Sims Metal Management Ltd.,
  • Table: Sims Metal Management Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Scrap Metal Recycling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Scrap Metal Recycling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • World price of steel (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ferrous Metal
  • Any metal containing iron. Common ferrous metals include steel, carbon steel, stainless steel, cast iron, and wrought iron and are primarily used for their tensile strength and durability.
  • Nonferrous Metal
  • Any metal that does not contain iron in appreciable amounts, including aluminum, copper, lead, nickel, tin, titanium and zinc.
  • Smelt
  • A process to produce a metal from its ore by using heat and a chemical reducing agent.
  • What Our Customers Say

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    The Scrap Metal Recycling industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

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    This report on Scrap Metal Recycling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Scrap Metal Recycling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

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