Press Release Summary = Defines the metal recycling market as ferrous scrap or secondary metals containing iron or steel and non-ferrous scrap or secondary metals.
Press Release Body = Metal Recycling - Market Report
Defines the metal recycling market as ferrous scrap or secondary metals containing iron or steel and non-ferrous scrap or secondary metals. Non-ferrous metals covered in this Market Report include aluminium, copper, lead, nickel, zinc and tin, with brief reference to precious metals such as gold, silver, platinum and palladium.
Consumption of recycled metals within the UK is estimated to account for £1.56bn in 2003, or around 5.5 million tonnes of ferrous and non-ferrous materials (excluding precious metals). There has been an overall decline in volume since the late 1990s, driven by trends within the ferrous sector, which has lost share of the total market, but which was still estimated to be responsible for 76.7% of overall volume in 2003. In terms of value, however, the ferrous sector represents only 24.5% of the total value of the metals recycling market. In the non-ferrous sector, aluminium accounts for 68.7% of non-ferrous volume and 16.1% of total metals volume, and has shown growth over the 1999 to 2003 period under review. Tin represents the smallest volume overall.
The UK operates within an increasingly competitive international context and exports of scrap metals have grown substantially in recent years, accounting for 63% of UK production of ferrous scrap in 2002. International trading sanctions, therefore, impact upon the UK - for example, the steel tariffs on imports imposed by the US in 2002 to protect its domestic market, which were repealed in December 2003. Similarly, in 2003, the world witnessed strong demand from China for all types of scrap metal, a trend that is likely to continue and which has implications for diversion of scrap from European markets.
The metal recycling market is characterised by a large number of small and mid-sized companies, although there is a tendency towards consolidation, as companies invest to meet increasingly onerous environmental targets. Legislation such as the Waste Electrical and Electronic Equipment (WEEE) Directive and the Restriction of Hazardous Substances (RoHS) Directive, which are due to be in place by the end of 2004 with producer targets set to begin in 2005, as well as the End-of-Life Vehicles (ELVs) Directive, all present increased opportunities for metal recycling.
Forecasts modest overall volume growth in the market through to 2008, against a background of comparatively favourable economic signs, but with caution in the manufacturing sector and allowing for legislation to take hold. The ferrous sector is forecast to maintain its position, with the increased environmental targets impacting upon the non-ferrous sector. Nickel and aluminium are likely to show faster growth rates than copper, lead, zinc and tin. The value of the precious metals sector is expected to show growth of 4.1% over the forecast period to 2008.