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 Analysis Chapter
The Scrap Metal Recycling industry has not emerged unscathed from the bumpy past five years. Industry revenue has fallen from $3.0 billion in 2009-10 to an estimated $2.1 billion in 2014-15, which is an annualised contraction of 6.8%. This can be attributed to major falls in steel and scrap metal prices over these years, as well as low growth or declines in downstream markets. However, increased pricing and volumes in 2014-15 are expected to result in industry revenue increasing by 5.1% for the year.
Price and profit volatility
A highly volatile metal market in the past five years has contributed to difficult operating conditions in the industry... purchase to read more