Metal Wholesaling in the US - Industry Market Research Report

Scrap parts: Consolidation will continue as difficult conditions force out smaller wholesalers

Metal wholesalers purchase primary metal products in bulk from manufacturers and distribute them to markets on a customized basis. The primary metals they deal with are iron, steel and nonferrous metals including copper or aluminum. Success in this industry hinges on downstream production and the prices of metals. Shifts in the prices of metals have a mixed impact on the industry, as higher prices increase purchase costs, but make up for it by having a higher resale value. Low prices reduce the cost of stocking up but come with the chance of not providing a sufficient return to turn a profit. So, steady and predictable metal prices are ideal for wholesalers. Recently volatile prices and decreased production during the pandemic have caused revenue to decrease at a CAGR of 1.3% to $230.3 billion over the past five years, including a drop of 5.7% in 2023 alone.

Metal wholesaling operators distribute primary metal products, both ferrous and nonferrous, to industrial and construction markets. Operators maintain inventory and may perform functions, such as sawing and cleaning on a custom basis and also as part of the distribution service. However, operators do not distribute precious metals, such as gold, silver and platinum, nor do they distribute insulated wire or recyclable metal scrap.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.