As consumers spent less on industrial goods, the need for industry services declined.
New York, NY (PRWEB) July 07, 2014
The Nonferrous Metal Recycling industry recovers nonferrous metals from scrap and reprocesses them into inputs for downstream manufacturers. Nonferrous metals, including aluminum, copper, lead, gold and silver, are able to maintain their chemical and physical properties throughout the recycling process. This quality permits nonferrous metals to be recycled an infinite number of times. “As research continues to demonstrate the energy efficiencies and cost benefits of using recycled metals in industrial production, manufacturers have increasingly replaced raw materials with reprocessed inputs,” according to IBISWorld Industry Analyst Leah Goddard. This trend has been exacerbated by new environmental standards encouraging the use of recycled materials to decrease industrial waste and carbon emissions.
Following a contraction in industrial production during the recession, manufacturing activity in key downstream markets, such as the automotive industry, started to recover in 2010. “Surging prices for commodities after the recession increased demand for recycled nonferrous metals, which are less expensive to purchase and reprocess than primary metals,” says Goddard. For these reasons, revenue for the Nonferrous Metal Recycling industry is forecast to grow strongly over the five years to 2014, rising at an annualized rate of 12.1% to $19.0 billion. However, as producers ramped up nonferrous metal production to meet demand, excess supply in a weakened economic environment led nonferrous metal prices to deteriorate in 2012. Dragging down average selling prices for industry products, this trend has led to a modest decline in revenue, with a 1.1% drop projected for 2014.
Over the five years to 2019, the Nonferrous Metal Recycling industry will benefit from increasing industrial production, which will help bolster nonferrous metal prices. As climate change remains at the forefront of international debate, more regulations are anticipated to curb carbon emissions, forcing manufacturers to use more sustainable materials in production, such as recycled nonferrous metals. Moreover, recovering these resources from scrap will become increasingly important as global consumption of cars and other products requiring nonferrous metal inputs continues to grow, putting pressure on the world's supply of these resources.
For more information, visit IBISWorld’s Nonferrous Metal Recycling in the US industry report page.
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IBISWorld industry Report Key Topics
This industry recovers copper, aluminum, lead and other nonferrous metals from scrap and then manufactures primary forms (e.g. bar, billet, bloom, cake, ingot, slab, slug and wire) from the recovered metals through secondary smelting and refining processes.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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