Key Trends Driving Growth
- Decarbonization: Local steelworks are increasingly switching to Electric Arc Furnaces (EAF). Unlike traditional blast furnaces, EAFs run primarily on recycled ferrous scrap, creating a constant local demand.+1
- Technological Integration: Major yards in suburbs like Laverton North and Sunshine are now using AI-driven sorting robotics and IoT sensors to track inventory and metal purity in real-time.
- Circular Economy Mandates: Victoria’s waste levies and landfill diversion targets have made it more expensive to dump metal waste, pushing businesses toward formal recycling partnerships.
Current Scrap Metal Prices in Melbourne (February 2026)
Note: Prices in the scrap world fluctuate daily based on the London Metal Exchange (LME) and local demand. Below are the average estimated rates per kilogram for clean materials.
| Metal Type | Price Range (AUD / kg) | Common Sources |
| Copper (Millberry/Bare Bright) | $10.50 – $11.20 | Stripped electrical wiring |
| Copper (Domestic/Pipes) | $8.50 – $9.80 | Plumbing pipes, hot water units |
| Brass (Clean) | $6.00 – $6.50 | Taps, valves, ornaments |
| Aluminium (Extruded) | $1.80 – $2.20 | Window frames, door tracks |
| Stainless Steel (316 Grade) | $1.50 – $2.30 | Marine fittings, food-grade tech |
| Heavy Steel | $0.25 – $0.35 | Industrial beams, machinery |
| Lead-Acid Batteries | $0.35 – $0.55 | Car and truck batteries |
Leading Players in Melbourne
The Melbourne market is a mix of family-owned yards and large-scale exporters. Some of the most prominent names include:
- Norstar Steel Recyclers: A major player in Laverton North focusing on industrial-scale recycling and automotive disposal.
- Manhari Recycling: One of Victoria’s largest exporters, known for handling massive volumes of steel and aluminium for international markets.
- Future Recycling: Noted for their sustainability-first approach, they operate multiple transfer stations (e.g., Hallam, Pakenham) and focus on resource recovery.
- Union Metal Recycling: A go-to for many tradespeople in the Sunshine area, offering competitive “on-the-spot” pricing for non-ferrous metals.
Regulatory & Safety Compliance
Operating or dealing with a scrap business in Melbourne involves navigating strict Victorian laws.
- Cash-for-Scrap Ban: Under the Second-hand Dealers and Pawnbrokers Act, it is illegal to pay cash for scrap metal in Victoria. All transactions must be made via electronic transfer or cheque to deter metal theft.
- Prohibited Materials: Most yards will refuse to accept certain items due to EPA regulations. This includes pressurized cylinders (gas bottles), radioactive materials, asbestos-contaminated items, and certain types of e-waste containing hazardous chemicals.
- EPA Licensing: Following recent updates, facilities storing large volumes of scrap (often over 3,000 tonnes) must hold specific EPA Operating Licences to ensure fire safety and environmental protection.
The Future: E-Waste and Rare Earths
The next frontier for Melbourne recyclers is the recovery of “specialty metals.” As electric vehicle (EV) adoption grows in Victoria, specialized plants are emerging to extract lithium, cobalt, and rare earth elements from batteries and high-tech components. This shift is turning traditional scrap yards into sophisticated urban mining operations.