Recyclable Material Wholesalers
Companies in this industry engage in wholesale distribution of automotive scrap, industrial scrap, and other recyclable materials. Major scrap wholesalers include America Chung Nam, Commercial Metals Company, and The David J Joseph Company (all based in the US), as well as ELG Haniel and TSR Recycling (Germany), European Metal Recycling (UK), and Sims Metal (Australia).
Worldwide, the recycling industry was valued at about $60 billion in 2022, and is expected to reach almost $90 billion by 2022, according to Statista. Germany has one of the highest recycling rates at almost 50%, contrary to US rates of below 25%. Demand for scrap is growing fastest in Asian markets, particularly in China and India.
The recyclable material wholesalers industry in the US include about 8,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $80 billion. The industry includes 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 in the US is fragmented: the top 50 companies account for less than 50% of revenue.
Products, Operations & Technology
Major sources of revenue are recyclable and prepared ferrous metal scrap, which accounts for about 45% and 35% of sales, respectively. Other sources include
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