In 2026, the scrap metal industry in Melbourne has shifted from a “rough-and-ready” trade into a sophisticated, highly regulated sector of the circular economy. Driven by Australia’s goal of reaching an 80% resource recovery rate by 2030, the local market is currently a hub for both industrial-scale processing and small-business entrepreneurship.
If you are looking to understand or enter the Melbourne scrap metal landscape, here is an essential guide to the current market, legalities, and pricing.
1. Market Overview: The Melbourne “Green Mine”
Melbourne serves as a critical node for Australia’s metal exports, particularly to manufacturing giants in Asia. The Victorian market is currently characterized by:
- Infrastructure Growth: Massive rail and road projects across Victoria continue to generate high volumes of ferrous (iron/steel) scrap.
- Technological Shift: Local yards are increasingly using AI-driven sorting and automated shredders to increase the purity of recycled alloys, which commands a premium in the global market.
- Sustainability Mandates: Many Victorian construction firms now require “Certified Recycled Content” for new builds, creating a closed-loop demand for local scrap.
2. The Law: Strict & Cashless
The most important factor for any Melbourne-based operator is Victoria’s strict regulatory framework managed by Consumer Affairs Victoria.
| Requirement | Detail |
| No-Cash Policy | It is illegal to pay or receive cash for scrap metal. All transactions must be via EFT (Electronic Funds Transfer) or a non-transferable cheque. |
| Licensing | Any dealer must be registered as a Second-Hand Dealer. Unlicensed operating carries heavy fines. |
| Record Keeping | Dealers must record the seller’s ID (Driver’s License/Passport), vehicle registration, and a detailed description/weight of the metal. |
| EPA Compliance | Businesses must adhere to the Environment Protection Act 2017, specifically regarding the handling of hazardous “e-waste” and batteries. |
3. Current Pricing Estimates (Melbourne 2026)
Prices fluctuate daily based on the London Metal Exchange (LME) and the AUD/USD exchange rate. High-value “non-ferrous” metals remain the primary profit drivers.
High-Value Metals (Non-Ferrous)
- Copper (Millberry/Clean): $10.50 – $11.10 per kg
- Brass (Clean): $5.50 – $6.20 per kg
- Aluminium (Extruded/Wheels): $1.65 – $2.10 per kg
- Stainless Steel (316 Grade): $1.45 – $1.80 per kg
Common Metals (Ferrous)
- Heavy Steel: $0.25 – $0.35 per kg
- Car Bodies: $0.15 – $0.25 per kg
- Lead-Acid Batteries: $0.35 – $0.50 per kg
4. Key Players in Melbourne
If you are looking to sell in bulk or study the competition, these are some of the dominant names in the Victorian landscape:
- Norstar Steel Recyclers: A major Australian-owned player with significant processing power in Laverton North.
- Manhari Recycling: One of Victoria’s largest exporters, known for providing free bin services to industrial sites.
- Best Way Scrap Metal: Popular for smaller-scale industrial cleanups and automotive recycling in Dandenong and Kilsyth.
5. Strategic Tips for Success
- Specialise in “Clean” Scrap: Contaminated metal (metal mixed with plastic, wood, or glass) attracts “back-charges” or lower rates. Sorting your scrap before arrival at the yard significantly increases your margin.
- Monitor the Billet Price: Since many Melbourne recyclers feed into Electric Arc Furnaces (EAFs), the price of steel billet often dictates local scrap demand.
- Leverage Free Pickups: If you are a tradesperson or site manager, many Melbourne yards offer Free Skip Bin services for metal-only waste, saving you significant landfill levy costs.
Pro-Tip: In Victoria, copper that is more than 80% weight must be held by the dealer for 7 days unless they take photographic evidence of the transaction. For fast turnover, ensure your yard has digital photo-logging integrated into their POS.