Weak Domestic and Foreign Demand Affects UK Metal Recyclers

According to Metal Recycling, a new Market Report from market intelligence provider Key Note, the UK metal recycling industry increased 2.6% in volume terms in 2013, and by 3.4% in terms of value.

The metal recycling industry is crucial to the UK economy. Apart from earning more than £5bn a year in revenue and providing more than 8,000 jobs, it also provides vital services to other industrial sectors, such as manufacturing, engineering and construction.

Key Note’s Market Report highlights the rising energy prices for the UK manufacturing industry in recent years, pushed up by several EU and UK environmental taxes, which has had a severe impact on scrap metal recyclers across the UK. As a result of high energy costs, the profits of metal recyclers are affected, which may lead to some metal recyclers moving their facilities overseas, where energy prices are often cheaper.  However, the Government’s latest Budget, in March 2014, introduced a number of concessions in order to help manufacturers with rising energy costs, including freezing carbon tax, which will help to drive down energy bills for metal recyclers.  

Key Note forecasts that as the UK economy grows moderately, yet steadily, over the next few years, the metal recycling market should also stabilise and improve.