Melbourne’s Scrap Metal Recycling Industry in Numbers – A Look at 2025 Data!

As we approach 2025, Melbourne's scrap metal recycling industry stands as a significant pillar of the city's environmental and economic infrastructure. With increasing global demand for sustainable solutions, the sector is evolving rapidly. The numbers speak for themselves—showing growth, challenges, and opportunities for recyclers, businesses, and investors alike.

In this blog, we’ll dive into the latest data on Melbourne’s scrap metal recycling industry and explore what 2025 looks like for local businesses and global stakeholders.

1. Melbourne’s Scrap Metal Recycling Market Value in 2025

In 2025, the value of Melbourne’s scrap metal recycling market is projected to reach approximately $1.5 billion. This marks a significant growth compared to previous years, reflecting the expanding demand for recycled metals, the growing awareness of sustainability, and increased investments in recycling technologies.

This increase is partly driven by the Australian government’s push for a greener economy, aiming to reduce waste and encourage the reuse of valuable materials such as copper, aluminium, and steel.

2. Volume of Scrap Metal Processed Annually

Melbourne processes approximately 2 million tonnes of scrap metal annually. This includes a wide range of metals such as:

• Steel: The most abundant metal processed in the city, primarily sourced from the automotive, construction, and manufacturing sectors.

• Aluminium: Highly sought after in industries like packaging and automotive, aluminium is one of the most valuable scrap metals.

• Copper: Often recycled from electrical wires and electronic devices, copper remains one of the most lucrative metals for recyclers.

As technology improves, this volume is expected to rise by 5-7% annually, with advancements in sorting, separation, and processing techniques allowing for more efficient recycling.

3. Top Metals Recycled in Melbourne in 2025

The most recycled metals in Melbourne in 2025 include:

• Steel: Roughly 60% of the scrap metal processed in Melbourne is steel, largely due to its prevalence in infrastructure, automotive, and construction industries.

• Aluminium: Accounting for 15-20% of the city’s scrap metal processing, aluminium's high demand in the automotive and packaging sectors plays a key role.

• Copper: Copper makes up around 10-15% of the total scrap metal processed in Melbourne,

  with strong demand driven by renewable energy projects and electric vehicle production.

With the rise of green technologies, the recycling of rare earth metals and precious metals (like gold, silver, and platinum) is also gaining traction, although they still represent a smaller proportion of the overall recycled materials.

4. Employment in the Scrap Metal Industry

The scrap metal recycling sector in Melbourne employs over 10,000 individuals across various roles, including collection, processing, transportation, and management. This number is expected to grow by 3-4% annually as demand for scrap metal increases and new recycling plants and facilities are established.

In addition to providing employment, the industry has a significant economic ripple effect, supporting jobs in related sectors such as logistics, waste management, and environmental

consulting.

5. Export Trends and International Demand

Melbourne remains a major exporter of scrap metal, particularly to Asia-Pacific countries, including China, India, and Japan. The city’s scrap metal export value in 2025 is expected to surpass $500 million, with copper and aluminium being the most sought-after materials.

The increasing focus on circular economies in countries like China and Japan has resulted in a steady demand for high-quality recycled metals from Australian suppliers. This trend is expected to continue, providing significant growth opportunities for Melbourne’s recycling sector.

6. Environmental Impact and Sustainability Efforts

Melbourne’s scrap metal recycling industry has made significant strides in reducing environmental impacts. In 2025, the recycling rate of metals in Melbourne stands at around 85%, a reflection of improved technologies and government policies aimed at reducing waste. This high recycling rate contributes to significant energy savings and a reduction in carbon emissions.

The energy savings from recycling metals in Melbourne are equivalent to powering over 50,000 homes for a year. These sustainability efforts align with Melbourne's broader environmental goals, which include reducing landfill waste and supporting a low-carbon economy.

7. Challenges Facing Melbourne’s Scrap Metal Recycling Industry

Despite the positive outlook, the industry faces several challenges that could impact future growth:

• Supply Chain Issues: Like many industries globally, the scrap metal recycling sector has experienced disruptions in the supply chain, particularly with the collection and transportation of materials.

• Fluctuating Scrap Metal Prices: The global market for metals is volatile, influenced by international demand, trade policies, and economic fluctuations.

• Quality Control: Ensuring that the scrap metal being processed is of high quality and free from contaminants remains a persistent challenge, impacting the efficiency of recycling operations.

8. Forecasting Growth: What’s Ahead for 2025-2030?

Looking ahead, the scrap metal recycling industry in Melbourne is set for continued growth. Key factors contributing to this include:

• Increased demand for electric vehicles: As Australia ramps up its adoption of electric vehicles, the need for recyclable metals like copper and aluminium will continue to rise.

• Sustainability policies: With ongoing government incentives and global commitments to reduce waste, Melbourne’s recycling sector is expected to receive continued support.

• Technological advancements: Innovations in sorting, processing, and recycling technologies will improve the efficiency and profitability of the sector.

By 2030, Melbourne’s scrap metal recycling industry could process over 3 million tonnes annually, with further increases in market value and employment opportunities.

Conclusion: The Future of Melbourne’s Scrap Metal Recycling Industry

Melbourne’s scrap metal recycling industry is poised for continued growth in 2025 and beyond. With increasing global demand, environmental sustainability goals, and advancements in recycling technologies, the industry will continue to evolve. For businesses, recyclers, and investors, staying informed and adapting to these trends will be key to maximizing opportunities in this thriving sector.