Scrap Metal Recycling
The Scrap Metal Recycling industry collects and processes both ferrous (iron-based) and nonferrous metals. Recycling typically involves sorting, shearing, shredding and torching the metal before selling it to steel mills, foundries and other industrial consumers, which then use it as an input for their products. Metal recycling has become more popular over the past few decades because it offers energy savings and cost benefits when compared with primary production, which requires extracting metals from mined ores. Despite these advantages, industry operators have experienced losses over the past five years due to the cyclical nature of metal prices on world markets. Over the five years to 2018, the prices of steel, aluminum, copper and other metals have fallen sharply, devaluing inventory and inducing losses. Prices of industry metals will continue to remain volatile over the next five years. The uncertainty in metal prices will be aided by imposition of tariffs on upstream metal production. Furthermore, increased domestic production could potentially increase supply and lower prices of metals industry operators recycle.
Operators in this industry are engaged in the collection, processing and recycling of ferrous metals, such as iron and steel, and nonferrous metals, such as aluminum, copper and nickel. The typical recycling process involves sorting, shearing, shredding, torching and baling scrap metal to be sold to downstream metal smelters for further processing.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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