Industry Insights for the Scrap Metal Industry

market revenue concept when looking for steel recycling industry trends

The scrap metal and scrap metal recycling industries are a very important part of U.S. revenue and economic wellbeing, generating billions of dollars every year and providing numerous jobs. Of course, like all industries, year-over-year changes and fluctuations in the market are common. Here are some industry insights for the scrap metal industry for 2018 that are important to know if you work in the scrap metal industry, or are a scrap metal buyer or seller–

Who Are We Talking About When We Say “Scrap Metal Industry?”

When we use the term “scrap metal industry,” we are talking about numerous different players. These key players include:

  • Steel and iron recyclers;
  • Aluminum scrap recyclers;
  • Lead scrap recyclers;
  • Copper scrap recyclers; and
  • Other nonferrous scrap recyclers.

In addition to recyclers, all those involved in the collection and processing of ferrous and nonferrous materials are counted, too.

Revenue Is Slightly Down

According to IBISWorld, over the past five years, the scrap metal industry has declined ever so slightly – 2.3 percent to be exact. As such, U.S.-based scrap metal revenue generated approximately $39 billion in 2018. In addition to the slight revenue decrease compared to previous years, the number of scrap metal businesses has also decreased by .9 percent, and the number of scrap metal employees has decreased by .6 percent.

What’s Expected for the Industry?

It can be difficult to make accurate predictions about the industry – a change can be preceded by a political move, bad weather, or numerous other unexpected circumstances. That being said, some forecasts for the future include:

  • The price of steel is expected to fall slightly, which could threaten the scrap recycling industry. When prices for steel are lower, there is less demand for scrap recycling.
  • However, the industry could also experience a boom in the future, at least in the United States. This is because China buys a lot of American recycled steel products, and as the GDP of China is expected to increase, so are the country’s building and development needs, increasing the demand for steel.

Contact Scrap Metal Services, LLC Today to Learn More

If you have questions about scrap trends or scrap recycling or want to get fair market value when selling your scrap, call our team at Scrap Metal Services, LLC today. We are a leader in the scrap recycling industry and have years of experience behind us. Reach us at 708-730-1400 today or send us a message to learn more.

What Are Nonferrous Materials and How Are They Processed?

examples of nonferrous metals that can be recycled with an experienced metal recycling company

Most metal recycling operations focus on the recycling and processing of ferrous materials. However, nonferrous materials are important too and are desired by parties in numerous different industries. At Scrap Metal Services, LLC, we manage both ferrous and nonferrous metal processing.

What Does Nonferrous Mean?

Nonferrous materials are those materials that do not contain iron – on the contrary, ferrous materials are materials that do contain iron. There is a long list of valuable nonferrous materials, including:

  • Aluminum;
  • Nickel;
  • Zinc;
  • Tin;
  • Copper;
  • Lead;
  • Brass; and
  • Titanium.

What’s more, the metals that we think of as “precious metals,” like gold and silver, are also nonferrous. There are also numerous rare metals, like cobalt, that are nonferrous in nature.

What Do We Use Nonferrous Materials for?

Nonferrous materials are used in the iron and steel industries, and for the manufacture of consumer goods and more. They are desirable because they are flexible and lightweight, and may contain other properties, such as resistance to corrosion. Because these materials do not contain iron, they are not magnetic. This can be desirable for certain manufacturing jobs and other projects.

How Are Nonferrous Materials Processed and Recycled?

The recycling of nonferrous materials is critical; recycling is an economically viable option for most materials (i.e. aluminum) and is also environmentally sound. The process of recycling nonferrous materials starts with sorting – different materials types must be properly sorted in order to be processed correctly. It is critical that any non-recyclable materials, like plastic, are removed. The second step of the process is baling, where the nonferrous materials are compacted into large blocks. This makes their transportation easier.

After sorting and baling, shearing, or cutting, of the nonferrous materials is the next step. This is done using high-grade machinery. From there, ferrous and nonferrous materials are further sorted and separated, typically using magnetic forces. Finally, nonferrous materials will be melted and shaped.

We’re a Trusted Metal Recycler Near You

At Scrap Metal Services, Inc., we have been in the metal recycling industry for more than a decade, and are a worldwide leader in scrap processing. We specialize in metal recovery and the processing of both ferrous and nonferrous materials and are ready to help your company meet its recycling goals today.

To learn more about the process of recycling nonferrous materials, please call us today at 708-730-1400 or send us a message using the intake form on our website.