Sources and Materials
Scrap metal is sourced from a diverse range of streams across Australia, leading to two main categories of materials:9
1. Ferrous Metals
These metals contain iron and are magnetic (e.g., steel and iron).10 While abundant and generally lower value per kilogram, they constitute the largest volume of scrap.11
- Sources: End-of-Life Vehicles (ELVs), construction and demolition waste (rebar, structural beams), white goods (appliances), and industrial machinery.12
2. Non-Ferrous Metals
These metals do not contain iron and are non-magnetic.13 They are far more valuable due to their properties, relative scarcity, and high demand in green technology.
- Most Profitable Materials (2025 Trends):
- Copper: The most valuable scrap metal, highly sought after for electrical wiring, renewable energy infrastructure, and Electric Vehicle (EV) components.14 Clean, stripped wire commands the highest price.15
- Aluminium: Valuable for its lightweight properties, used in cans, automotive parts, and building extrusions.
- Brass: An alloy of copper and zinc, often found in plumbing components and fixtures.16
⚖️ Regulation and Compliance: A Focus on Integrity
To combat metal theft and increase transparency, the Australian scrap metal industry operates under strict, often state-based, regulations.17 Compliance is a non-negotiable aspect of the business.18
| Regulatory Area | Key Requirement in Major States (NSW, VIC) | Purpose |
| Cash Payments | Banned or heavily restricted. Payments must be made via electronic funds transfer (EFT) or cheque. | To create a traceable financial record and deter the sale of stolen goods. |
| Licensing | Mandatory registration as a ‘Scrap Metal Dealer’ or ‘Second-Hand Dealer’ (varies by state). | Ensures businesses are vetted (e.g., via police checks) and operating legally. |
| Record-Keeping | Dealers must keep detailed digital records of every transaction, including the seller’s full ID, material description, quantity, and method of payment, for up to three years. | Provides a clear audit trail for law enforcement. |
| Motor Vehicles | Stricter rules apply; vehicles bought for scrap must have their identifying details (VIN/Chassis Number) clearly displayed. | To prevent the illegal trade of stolen vehicles. |
📈 Future Outlook and Key Industry Trends (2025)
The Australian scrap metal business is evolving, driven by technological adoption and national policy.19
- Focus on Non-Ferrous Metals: Demand and prices for copper and aluminium are projected to remain high due to their integral role in the “green economy” (solar, wind, EVs).20
- Technology and Automation: To maximize purity and efficiency, high-volume yards are increasingly investing in smart sorting systems, automated shredders, and AI-driven tracking to accurately grade and process materials.21
- Export Pressure: There is a growing push for national policy to limit the export of raw, unprocessed scrap metal, instead encouraging its use by Australian manufacturers to support green domestic steelmaking and keep more value onshore.22
- Eco-Certified Partnerships: Commercial and industrial customers are increasingly seeking eco-certified recyclers to meet their own sustainability targets, making ISO standards and clear environmental compliance a major competitive advantage.23
The Aussie scrap metal business is firmly positioned at the intersection of industry, global trade, and environmental stewardship, ensuring it will remain a critical and dynamic sector for decades to come.