Recyclable Material Wholesalers

Brief Excerpt from Industry Overview Chapter:

Recyclable material wholesalers in the US include about 6,200 companies with combined annual revenue of about $77 billion. Major scrap metal wholesalers include Schnitzer Steel, The David J Joseph Company, OmniSource, and America Chung Nam. The industry is fragmented: the top 50 companies account for about 45 percent of revenue.

The global recycling industry generates about $200 billion in revenue, according to the Bureau of International Recycling (BIR). Turkey is the largest scrap import market; the US is the largest scrap exporter. Major recyclable material wholesalers outside the US include Sims Metal Management and OneSteel Recycling (headquartered in Australia); TSR Recycling and ELG Haniel (Germany); and European Metal Recycling (UK).

The industry includes companies engaged in wholesale distribution of automotive scrap, industrial scrap, and other recyclable materials, along with auto wreckers primarily engaged in dismantling motor vehicles for the purpose of wholesaling scrap.

COMPETITIVE LANDSCAPE

Demand from the steel, auto, and construction industries drives the scrap metal wholesaling industry. The profitability of individual companies depends on cultivating relationships with suppliers and buyers. Most companies are small and compete by specializing in one type of material in their local market. Large companies have economies of scale in purchasing equipment and transportation. The industry is capital-intensive: average annual revenue per employee is about $700,000.

The US is the world's largest net scrap exporter. Major export markets for US waste and scrap include Turkey, China, South Korea, Taiwan, Canada, and India. Exports account...