Executive Summary

The domestic scrap metal market has recovered from its nadir in 1991 and in currently processes around 5.3 million tonnes of ferrous scrap and a further 647,200 tonnes of non-ferrous scrap. Some consideration is also given to the precious metal, electronics and batteries sectors, all of which will become more significant as recycling technologies improve and the amount of product feedstock increases.

The domestic market is considered to be worth a total of around £681m in raw material values, of which around 57% is derived from the ferrous sector, although during the period 1990 to 1992, the domestic market for non-ferrous scrap metals exceeded that for ferrous metals. It is estimated that there are in excess of 10,000 itinerant scrap metal collectors and 750 major companies dealing in ferrous scrap. There are also 850 major dealers in non-ferrous scrap. Nevertheless, the industry is still heavily reliant on the voluntary collection system to keep its costs to a minimum.

One of the most important factors to be addressed is the question of the real cost of collecting and recycling scrap metal. It is suggested that there is little evidence of complete energy audits being carried out within the industry and that much of its direction is to achieve the rates of recycling laid down by the Government and EU Parliament. Concern is also expressed at the high levels of licence charges being imposed on the industry by central government, thus hindering the prospects for a successful and buoyant industry.

The scrap metal industry is heavily influenced by international factors which are invariably outside the control of either the domestic or European markets. The actions of the commodity markets are also very important on the success, or otherwise, of the industry. Special concern is expressed towards the apparent attitude by the EU of ignoring any subsidies paid to national steel producers by their government, despite it going against EU policy. This, in part, has resulted in ferrous scrap prices increasing substantially in the past year or so, thus putting pressure on the UK's steel manufacturers. However, as a result of these increases, the scrap metal dealers are beginning to show profitability after some years of losses.

More Information

  Denotes a required field.