Industry Analysis & Industry Trends
The Scrap Metal Recycling industry has faced a tumultuous past five years. Industry revenue has taken a beating, contracting at an annualised 6.8% in the five years through 2014-15. Upstream activities in the industry have been adversely affected by poor demand conditions. While consumers are keeping their purse strings tight and staying away from unnecessary purchases, manufacturing output has declined. This has lowered the supply of scrap metal generated from manufacturing activities. Lower consumption levels have also contributed to reduced waste volumes, leading to low growth in scrap metal supplies.
Low steel and scrap metal prices have contributed to large price declines and industry revenue falls in the past five years... purchase to read more
Industry Report - Industry Locations Chapter
The distribution of scrap metal recycling revenue and businesses across the country generally follows the population distribution. As the two most populated states in Australia, New South Wales and Victoria have the largest numbers of businesses and account for the highest revenue levels. In addition to high export levels, the industry services the construction and manufacturing sectors. The concentration of automotive manufacturers, a key user of cast ferrous metals, in Victoria encourages firms to engage their operations in the state. By having operations close to construction and manufacturing firms, industry operators are able to generate cost savings from cheaper transportation cost. Therefore, industry activity tends to be based near densely populated areas... purchase to read more