Trash to treasure: Rising ewaste volumes have boosted the revenue derived from precious metals

The past five years have been difficult for operators in the Scrap Metal Recycling industry. Although demand from building construction has increased, indirect demand from basic ferrous metal product manufacturing has declined. This mixed demand, combined with Arrium Limited's entry into administration in April 2016, has lowered the amount of scrap metal generated from domestic activities over the past five years. Industry revenue is expected to decline at an annualised 3.6% over the five years through 2018-19, to $2.3 billion. This includes forecast growth of 4.6% in the current year, primarily due to increased non-residential building construction and a slight rise in the base metals price more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Lower industry prices and excess global steel output have contributed to industry revenue declines
  • Growing demand from building construction has supported demand for recycled and scrap steel
  • Demand for scrap metal recycling is expected to increase over the next five years
  • Industry Report - Starting a New Business Chapter

    The Scrap Metal Recycling industry has high barriers to entry, with initial capital costs and the well-established client bases of the industry’s larger players being the major entry impediments for new firms. The scale of investment required, particularly in relation to the construction of large-scale recycling facilities that require expensive and complicated machinery (such as shredders, cutters and furnaces) provides a significant barrier to potential entrants. However, the cost of automated technologies are declining as their production becomes more widespread. This has caused the start-up costs for new companies to decline.Regulations boost the investment and time required before a new company can legally operate in the industry. For...purchase to read more.

    Additional Insights for the Scrap Metal Recycling Industry

    IBISWorld has determined the most important Key Success Factors for the Scrap Metal Recycling are:

  • Establishing key export markets
  • Access to a multiskilled and flexible workforce
  • Access to the latest available and most efficient technology and 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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    What's in this report

    What is the Scrap Metal Recycling Industry?

    Industry firms are primarily engaged in the recovery of recycled scrap metal. Recovery involves the manufacture of scrap metal into new, usable material or products. Commonly recycled metals include steel, copper, aluminium, zinc, lead, nickel and titanium.

    Industry Products
  • Ferrous scrap metal recycling services
  • Non-ferrous metal recycling services
  • Precious and other metal recycling
  • Final metal products
  • Industry Activities
  • Ferrous metals recycling
  • Non-ferrous metals recycling
  • Precious metals recycling
  • Metal product
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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
  • Pricing and profit trends
  • Scrap metal

    supply trends

  • Domestic market trends
  • Export market trends
  • Consolidation trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Future market structure
  • Demand and

    cost trends

  • 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

  • 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
  • Final metal products
  • Precious and other metal recycling
  • Chart: Scrap Metal Recycling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other export markets
  • Domestic metal smelting industries
  • China export markets
  • Other domestic industries
  • 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
  • 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 Limited,
  • Table: Sims Metal Management Limited - 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
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • 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.
  • What Our Customers Say

    Why buy this report?

    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.

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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

    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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