Recyclable Material Wholesaling in the US Industry Market Research Report Now Available from IBISWorld

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The industry will continue to surge forward, driven by strong demand from metal manufacturers that will increasingly use scrap metal as part of the production process, stimulating revenue growth. Furthermore, emerging economies will also continue demanding scrap metal to meet demand for steel in their markets, ultimately resulting in heightened scrap metal prices. For these reasons, industry research firm IBISWorld has added a report on the Recyclable Material Wholesaling industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Steel manufacturers will increasingly use scrap metal as an input, supporting industry demand

The Recyclable Material Wholesaling industry is dominated by the scrap metal market. Increasing global demand for steel supports this market, since scrap metal is used to produce it. Before the recession, increased demand for scrap to feed the world's steel furnaces (including primary metal manufacturers) caused average annual steel and iron scrap metal prices to increase significantly. A rise in scrap metal prices generally translates into revenue growth, but conditions changed considerably during the recession, with excess supply and falling demand dragging prices down and putting the pinch on wholesalers. Nevertheless, wholesalers still managed to grow their revenue over the five years to 2012, with significant sales of scrap metals to emerging economies. Revenue will increase by an average of 1.8% annually in the five-year period to $68.1 billion, according to IBISWorld industry analyst Deonta Smith. From 2011 to 2012, revenue is expected to grow 7.9%, as global economic growth gains steam.

While the Recyclable Material Wholesaling industry is quite fragmented, there are several vertically integrated steel manufacturers that buy and sell scrap metal. Over the past five years, these large players sought to own more of the supply chain and acquired scrap metal wholesalers at increasing rates as scrap metal can be used for steel production, says Smith. The pace of industry firm acquisitions peaked during the period up to the recession. Skyrocketing steel prices prompted many steel manufacturers to acquire recyclable material wholesalers to widen their margins amid high steel scrap prices, which are correlated to broader steel prices. These acquisitions led to fewer industry firms as large manufacturers sought to bring scrap metal wholesaling in-house.

The next five years will likely bode well for the industry. Strong global growth will lead to industrial production expansion, which will in turn bolster demand for scrap metal, as heavy manufacturers use recycled steel. Also, steel manufacturers will accelerate their demand of scrap metal as these players increasingly adopt electric arc furnaces (EAFs) to make steel, a process that uses scrap metal as an input (as opposed to using coal). Emerging economies will also continue demanding scrap metal to meet demand for steel in their markets, ultimately resulting in heightened scrap metal prices. As a result of these positive trends, industry revenue is expected to grow in the five years to 2017. For more information, visit IBISWorld’s Recyclable Material Wholesaling in the US industry report page.

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IBISWorld industry Report Key Topics

This industry wholesales automotive scrap, industrial scrap and other recyclable materials. The industry includes auto wreckers that dismantle motor vehicles for the purpose of wholesale scrap. It also includes establishments that break up, sort and wholesale all forms of scrap iron and steel using power processing equipment such as cranes, hydraulic shears, baling equipment and cable strippers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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