Russian scrap market structure
Metal Expert Consulting’s investigation includes assessment of competition in the scrap market, identification of the largest scrap collectors and consumers.
Although scrap collectors compete toughly, their market is dominated by scrap collection networks, which are members of steel holdings in most cases. According to our estimates, the networks account for 20-25% of all scrap collection in the country (2012-early 2013 data). The share of big independent scrap collectors (there are 15-20 of them) is 15%.
The majority of companies however collect less than 100,000 tpy.
Some 30 companies have been buying most of scrap in the recent years. 50-60% of the total is the share of the five biggest operators.
Most consumers are located in the Urals and Volga Federal Districts. At the same time, scrap purchases both in these and other districts are usually determined by one or two companies’ policy.
In 2011-2012, scrap collection exceeded purchases by local consumers by 1.27-1.29 times. The ratio between the indicators is different for different districts.
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