Scrap Yards Recycling the Most Scrap Metal in 2015
By the year 2020 the scrap metal market for recycling in the world is estimated to double from $277 billion in 2015 to $406 billion. Nearly 120 million tons of scrap is handled in the US alone and it is estimated to be a $20 billion industry in the country. This phenomenal growth is attributed to the growing awareness of the conservation of natural resources, industrialization, and increases in population.
Scrap metal is typically old or new scrap from cars, appliances, buildings, airplanes and others, collected by scrapyards for recycling purposes. The product post-recycling is used by many industrial sectors such as construction, auto, equipment manufacturing, consumer appliances and so on. Supplying ready-to-use metal to industries at a reduced cost not only protects the environment but saves resources. Procuring metal from virgin ores is time consuming and costly. Recycling scrap metal reduces the total space occupied by unused materials in landfills as well. It plays a vital role in conserving natural resources and safeguarding the environment as well. Scrap resources are undeniably valuable because they can be recycled, remolded, and reused countless number of times.
There were many mergers and acquisitions placed in the scrap industry in the recent years, boosting the total amounts of scrap produced by each company. Let us take a look at the top scrap yards in the country, based on the metal type. To simplify, the categories have divided into ferrous and nonferrous metals.
Nonferrous Scrap Metals
Nonferrous metals are essentially scrap metals other than iron and steel. Think of it as scrap from soda cans to radiators or parts of airplanes. This includes aluminum, chromium, nickel, and other precious metals. According to the recent statistic report by IBISWorld, the nonferrous scrap metal industry is worth $19 billion and growing at a healthy rate of 14 percent annually. Here is a quick list of the top five scrap metal companies in the country.
- SIMS Metal Management Company Ltd. This scrap metal company is one of the leading scrap metal companies in the world. SIMS has been in the industry for more than 100 years. In the United States, SIMS mostly acquires all the scrap from the New York and Chicago municipalities. Their end-products are mainly provided to the shipping industry.
- David J. Joseph Co. This company has been in the industry for more than a century. They are headquartered in Ohio. Their total assets and worth are more than $1 billion.
- OmniSource Corp. This company has been in the industry for more than 65 years and is headquartered in Indiana. Although acquired by Steel Dynamic Inc. in 2007, OmniSource continues to operate as an independent subsidiary.
- Alter Trading Corp. This company has been in the industry for nearly a 115 years. Their facilities are mainly spanned over the Central American region and they supply post-recycled products both the United States and throughout the world.
- Commercial Metals Co. This company has been in the industry for nearly a decade and are headquartered in Dallas. They supply nonferrous metals both within the country and worldwide.
Ferrous Scrap Metals
Ferrous metals are iron and steel scrap metals. These are the most recycled metals in the world. According to the recent statistic reported by IBISWorld, the ferrous scrap metal industry is worth $39 billion. With a highly volatile market, the ferrous metal prices are expected to fluctuate considerably over the next 5 years. Hence, the growth has been almost negative for the past year or so. Here is a quick list of top ferrous scrap metal companies in the country (names may overlap; please refer to brief description of company as mentioned above)
- SIMS Metal Management Company Ltd.
- OmniSource Corp.
- Schnitzer Steel Industries. This company has been in the industry for nearly a decade. Their facilities are mainly spanned over the American coastal regions and are headquartered in Oregon.
- David J. Joseph Co.
- Tube City IMS. This company has been in the industry for over 90 years and is headquartered in Glassport.
Please note, although we have made every effort to produce the right information on ranking, the companies mentioned here are the ones who have shared their revenue details publicly; there are many other privately run scrap yards who prefer not to disclose their annual revenue earnings and thus may not appear in this list.