In early 2026, the scrap metal industry in Melbourne has moved from a traditional “junk” trade to a sophisticated, high-demand pillar of the Victorian economy.1 With scrap metal prices for materials like copper and aluminum reaching near-record highs, the city is experiencing a “gold rush” of recycled materials.
Several unique local and global factors have converged to make Melbourne the current epicenter of the Australian scrap metal boom.
1. Infrastructure and Construction Surges2
Melbourne is currently undergoing some of the most significant infrastructure expansions in its history. Major projects—including rail loop expansions, smart city upgrades, and large-scale residential developments—rely heavily on steel and aluminum.3
- The “Circular” Requirement: Modern Victorian government tenders now often mandate the use of recycled content. This has turned scrap yards into essential suppliers for the construction industry, rather than just waste collectors.
- Demolition Volume: Increased urban renewal in the CBD and inner suburbs has created a massive supply of “clean” industrial scrap (rebar, structural beams, and piping), which is the most profitable for recyclers.
2. The Green Energy Transition & EV Boom
The global push for electrification has made Melbourne’s scrap yards more valuable than ever.
- Copper Demand: Electric vehicles (EVs) and renewable energy grids require significantly more copper than traditional systems.4 As of January 2026, copper is a “hero” metal, often fetching between $9.50 – $11.00 per kg in Melbourne.5
- E-Waste & Batteries: Melbourne has become a hub for processing end-of-life EV batteries and electronic waste.6 Facilities are now using specialized AI-driven sorting to extract rare earth elements, lithium, and cobalt, which were previously lost to landfills.
3. Strict Export Regulations
The Federal Government’s restrictions on exporting unprocessed scrap have forced a shift toward domestic processing.7
- Local Value Addition: Instead of shipping raw waste offshore, Melbourne businesses are now investing in advanced shredders and separators. This keeps the profit within Victoria and ensures a steady supply of “furnace-ready” metal for Australian manufacturers like BlueScope Steel.
- Job Creation: This policy has led to a spike in local employment within the recycling sector, from logistics to materials science.8
Current Market Rates in Melbourne (Jan 2026)
Prices fluctuate daily based on the London Metal Exchange (LME), but current estimates for the Melbourne market are:
| Metal Type | Price per Kilogram (Approx. AUD) |
| Copper (Clean/No. 1) | $10.00 – $11.50 |
| Brass | $6.00 – $7.00 |
| Aluminium | $1.50 – $2.00 |
| Stainless Steel | $1.80 – $2.30 |
| Steel (Heavy)9 | $0.25 – $0.3510 |
4. Technological Innovation in Sorting
The “peak” in the business is also driven by efficiency. Melbourne scrap yards are no longer just piles of rust; many now employ:
- XRF Analyzers: Handheld devices that instantly identify the chemical composition of an alloy, ensuring sellers get paid the exact value for high-grade materials.
- AI Sorting: Automated systems that use computer vision to separate non-ferrous metals from bulk waste at speeds impossible for human laborers.
5. Environmental Policy: ReWaste 2030
The Victorian Government’s “ReWaste 2030” initiative has placed heavy levies on landfills.11 It is now significantly cheaper for a business to recycle metal than to throw it away. Combined with government grants for “green” businesses, the financial incentive to participate in the scrap economy has never been higher.
Pro Tip for Sellers: To maximize your return in the current Melbourne market, always separate your “Non-Ferrous” (non-magnetic, like copper/brass) from “Ferrous” (magnetic, like steel) metals before heading to the yard.12 Clean, sorted loads consistently command 15-20% higher prices.