Recyclable Material Wholesalers

The 6,270 recyclable material wholesalers in the US distribute metal scrap, glass scrap, paper scrap, plastic scrap, and other recyclable materials for reuse in manufacturing, construction, and other applications. The industry includes auto wreckers who dismantle motor vehicles to resell scrap materials, rather than selling used auto parts.

Dependence On Economy

Demand for recyclable materials is dependent on economic conditions, particularly the strength of the manufacturing and construction sectors.

Volatile Scrap Prices

Prices for recycled materials can vary widely from year to year, affecting revenues and inventory valuations for wholesalers.

Sep 11, 2026 - US-Canada Trade Fight Could Reshape Recovered Material Markets

• Escalating US-Canada tariffs are expected to raise costs and disrupt packaging supply chains for fiber, metals, and other materials, according to Packaging Dive. Canada announced tariffs of up to 50% on $27.6 billion of US goods after the US imposed similar duties, with paper, aluminum, and steel among the affected materials. Industry groups warn that disruptions to corrugated trade could ripple into recovered fiber markets. At the same time, aluminum producers say the US must expand the output of recycled metal as imported primary aluminum becomes more expensive. Recyclable material wholesalers could see shifting domestic demand and pricing for recovered paper and metals as manufacturers seek alternative supplies and greater use of recycled feedstock.
• US exports of aluminum-bearing scrap increased 21% in the first half of 2026 compared with the same period a year earlier, reaching about 1.25 million metric tons, according to AL Circle, citing US Census Bureau data. Thailand was the largest buyer, followed by India, while shipments to several other Asian markets posted double-digit gains. The rise in exports has intensified debate over whether more aluminum scrap should remain in the US to support domestic recycling and manufacturing. Strong overseas demand can create additional sales opportunities for recyclable material wholesalers and support scrap values, but potential export restrictions or other policies aimed at retaining material domestically could alter trade flows and buyer competition.
• US recycled plastic prices fell sharply in August as summer collection volumes increased and inventories rebuilt, PlasticsToday says. Prices for recycled PET, polyethylene, and polypropylene dropped by 50% to 60% from spring highs, while weak virgin resin pricing and cautious purchasing added pressure. Mixed-color polypropylene bales were down about 60% from May highs, and natural HDPE bale prices fell more than 50%. Demand for higher-quality recycled content tied to brand commitments remained steadier than demand for lower-value grades. Recyclable material wholesalers may face weaker margins and greater inventory risk when bale prices fall rapidly, making procurement discipline and access to higher-value end markets increasingly important.
• A US House Energy and Commerce subcommittee advanced two recycling-related bills on September 1, according to the committee. The Packaging and Claims Knowledge Act would establish a nationally consistent framework for recycled-content and related marketing claims, while the Recycled Materials Attribution Act also moved to the full committee. Supporters of the PACK Act argue that a common federal standard could reduce conflicting state definitions and make recycled-content claims easier for businesses and consumers to understand. More consistent rules could help recyclable-material wholesalers by supporting demand for verified recycled feedstocks and reducing uncertainty for customers operating in multiple states. However, the proposals would require additional congressional action before becoming law.

Industry size & Structure

The average recyclable material wholesaler has a single location, employs about 16 employees and generates $17.3 million in annual revenue.

• The industry consists of about 6,000 companies that employ 102,100 workers and generate $108 billion in annual revenue.
• The industry consists primarily of small family-owned businesses.
• The industry is fragmented, as the top 50 companies account for only 47% of industry revenue.
• Large companies include America Chung Nam (paper and plastic recycling), David J. Joseph Company (scrap metal and a subsidiary of Nucor Corp.), OmniSource (scrap metal and a subsidiary of Steel Dynamics, Inc.), Sims Metal Management (scrap metal and U.S. subsidiary of Sims Group Ltd. of Australia) and Radius Recycling (formerly Schnitzer Steel Industries).
• Some firms act as brokers, selling recycled materials for owners of material recovery facilities (MRFs), while others operate their own MRFs.
• Some large companies are vertically integrated and also process scrap material into finished products.
• The industry also competes with the recycling operations of large waste management companies, such as Waste Management, Inc. and Republic Services, Inc.