Industry Analysis & Industry Trends
The Scrap Metal Recycling industry has been through a tumultuous past five years. Industry revenue is expected to contract by an annualised 4.3% over the five years through 2014-15. Upstream activities have been affected by mixed demand, with demand from manufacturing declining and construction demand growing. This has lowered the supply of scrap metal generated from manufacturing activities. Lower manufacturing levels have also contributed to reduced waste volumes, leading to low growth in scrap metal supplies.
Slight declines in metal prices and reduced output have contributed to industry revenue falls in the past five years. Furthermore, variable economic conditions have been detrimental to the industry's downstream markets, hindering growth in demand for industry products... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Scrap Metal Recycling industry is estimated to have a high level of market share concentration, with the top two players accounting for an estimated 77.6% of industry revenue in 2014-15. The highly entrenched nature of the incumbent players has meant that the industry is dominated by large, vertically integrated multinationals such as Sims Metal Management (SMM) and Arrium Limited. The capital intensive nature of industry services has precluded smaller firms from effectively competing with industry players.
Over the past five years, market share concentration has increased in line with mergers and acquisitions, particularly by players such as SMM that have looked to aggressively increase market shares in a mature market with limited growth opportunities... purchase to read more