Recyclable Material Wholesalers NAICS 423930
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Industry Summary
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.
Recent Developments
Nov 10, 2025 - Regulatory Shift in China Rattles OCC Export Market
- China’s new regulation requiring recycled pulp importers to disclose dry or wet milling methods is shaking the market for old corrugated containers (OCC), according to Waste Dive. The policy targets dry-milled pulp, viewed as more contaminated, prompting price drops and production halts across Southeast Asia. US recyclers are bracing for inspection protocols and enforcement details, while wet-pulp mills report rising demand. The move echoes past Chinese import crackdowns, like National Sword, which disrupted global fiber flows and led to a surge in recycled pulp exports. With over 60% of China’s pulp imports previously dry-milled, the shift could raise raw material costs and deepen OCC market volatility. Analysts expect long-term impacts to hinge on enforcement, but many believe a full ban on dry pulping is likely. The recycling industry faces renewed uncertainty, with OCC’s price swings and structural imbalances intensifying.
- Redirecting 50% of plastic waste from landfills to recycling could generate 173,200 US jobs, $12.8 billion in payroll, and $48.7 billion in economic output, according to the American Chemistry Council (ACC). The report highlights the combined potential of mechanical and advanced recycling technologies, which together can process a wider range of plastics. While mechanical recycling handles common curbside items, advanced methods convert hard-to-recycle plastics, such as flexible packaging and textiles, into raw materials for new products. The U.S. has 245 plastic recycling facilities, but many plastics still end up in landfills due to infrastructure limits. Over $10.5 billion has been invested in recycling, with $4.6 billion toward advanced systems. ACC advocates for federal policies like extended producer responsibility and harmonized recycling legislation to boost innovation and investment.
- In October, prices for curbside recyclable materials continued to trend downward across most categories, according to RecyclingMarkets.net. The US average price for post-consumer PET bottles and jars fell 3.4% month-over-month in October and plunged 74.4% year-over-year. Natural high-density polyethylene (HDPE) rose slightly by 1.1% from September but declined 10.1% compared to October 2024. Color HDPE increased 22.2% month-over-month but was down 62% year-over-year. Polypropylene (PP) remained flat month-over-month in October and dropped 43% year-over-year. Prices for old corrugated containers (OCC), used in manufacturing new boxes, fell 22.8% from September and were down 39.0% year-over-year. October's aluminum can prices remained unchanged month-over-month and dipped 0.4% compared to the same time last year. Sorted residential paper prices declined 23.1% from September and were 43.7% lower than a year ago.
- Speakers at a recent conference of the Pennsylvania chapter of the Solid Waste Association of North America (SWANA) emphasized that well-designed, audience-specific recycling systems are key to boosting participation and reducing contamination, according to Waste Dive. Tailoring programs to local realities—such as income levels, housing types, and waste stream composition—can improve outcomes, especially in multifamily buildings where bin placement and sizing often hinder recycling. Convenience centers with intuitive layouts and engineered bin designs help residents sort materials correctly. Landfill operators are urged to adopt creative diversion strategies to recover valuable recyclables and extend landfill lifespans.
Industry Revenue
Recyclable Material Wholesalers
Industry Structure
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.
Industry Forecast
Industry Forecast
Recyclable Material Wholesalers Industry Growth
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