Overview

Scrappy performance: Industry revenue is expected to decline due to declining metal recovery

IBISWorld’s Scrap Metal Recycling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

REPORT SNAPSHOT

Industry Analysis & Industry Trends

The past five years have been difficult for operators in the Scrap Metal Recycling industry. Indirect demand from metal and metal product manufacturing has declined, while demand from construction has increased. This mixed demand, combined with Arrium Limited entering administration in April 2016, has lowered the amount of scrap metal generated from domestic activities. As a result, industry revenue is expected to decline by an annualised 13.1% over the five years through 2016-17, to total $1.5 billion.

Declines in metal prices and reduced output have contributed to industry revenue falls over the past five years. Furthermore, lower domestic manufacturing levels have been detrimental to the industry's downstream markets, hindering demand growth for industry services...

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What is the Scrap Metal Recycling industry?

The industry carries out three main functions: ferrous scrap metal recycling, non-ferrous scrap metal recycling, and precious and other metal recycling.

Ferrous scrap metal recycling

Ferrous metals, such as steel, include iron and carbon, and are highly recyclable. Given the extensive use of steel in many products, ferrous metals account for the dominant share of industry revenue. Steel is the one of the world's most recycled materials, thereby making its lifecycle potentially continuous. Ferrous scrap metal recycling is mainly made up of steel scrap. Approximately two-thirds of steel available for recycling is used in the production of new steel, making scrap metal recyclers invaluable to the generation of new metal products...

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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

  • Establishing key export markets
  • Access to a multiskilled and flexible workforce
  • Access to efficient production and recycling techniques
  • IBISWorld analysts also discuss how external factors such as Trade-weighted index and Base metals price index in the Scrap Metal Recycling industry impact industry performance..

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    New Zealand Special Report

    Products & Brands

    Major products in this industry
    Ferrous scrap metal recycling services
    Non-ferrous metal recycling services
    Precious and other metal recycling
    Final metal products
    Examples of brands in this Industry
    Sims Metal Management

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Trade-weighted index
  • Base metals price index
  • World price of steel
  • Demand from primary metal and metal product manufacturing
  • Demand from building construction
  • Demand from transport equipment manufacturing

  • Current Performance
  • Price and profit changes
  • Mixed scrap metal supply
  • Ailing downstream markets
  • Export markets
  • Increasing consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Future market structure
  • Demand and cost changes
  • Future industry developments
  • Table: Scrap Metal Recycling Industry Revenue Outlook

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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Iron Smelting and Steel Manufacturing
  • Aluminium Smelting
  • Non-Ferrous Metal Casting

  • Key Selling Industries
  • Consumers
  • Mining and Construction Machinery Manufacturing
  • Motor Vehicle Manufacturing

  • Products & Services
  • Ferrous scrap metal recycling services
  • Non-ferrous metal recycling services
  • Precious and other metal recycling
  • Final metal products
  • Chart: Scrap Metal Recycling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other export markets
  • China export markets
  • Domestic metal smelting industries
  • Other domestic industries
  • Chart: Major Market Segmentation for the Scrap Metal Recycling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • 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
    Major Companies
    Sims Metal Management Limited
  • Table: Sims Metal Management Limited - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Scrap Metal Recycling Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Metals Recovery (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Baler
  • Equipment used to compress scrap metal into compact bales.
  • Ferrous
  • A metal, such as steel, that contains an appreciable amount of iron.
  • Foundry
  • The buildings and works for casting metals.
  • Non-Ferrous
  • A metal, such as aluminium, that does not contain iron.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    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

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Scrap Metal Recycling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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