SWOT ANALYSIS FOR METAL RECYCLING INDUSTRY

SWOT stands for strengths, weaknesses, opportunities, and threats. It is an analytical framework that used to determine business position and develop strategic plans to overcome challenges. (https://en.wikipedia.org/wiki/SWOT_analysis). Today, will apply this framework to understand the global metal recycling market.

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Strengths and Weakness

The metal recycling market is fuelled by the growth in construction sector – it held the largest market share of 35.1% in 2019. The demand for ferrous material in metal recycling sector is growing as it is used significantly. An ideal example would be of the year 2018 when the recycling rates for ferrous scrap in cars was 106% while structural steel was 98%. (https://global-recycling.info/archives/4094)

To sustain in modern world, products are made with due research and contains complex mixes of metals. For instance, a mobile phone can contain more than 40 elements. As we advance further, the biggest hit sector is the metal recycling industry. As a product becomes more complex, metal extraction and recycling become harder. As they form a significant source for recyclable metal, it is important for metal recycling companies learn more about becoming an urban miner. Urban mining refers to extracting metals from discarded electrical and electronic equipment stockpiles.

Many countries do not recycle the metal scrap they produce – either at its scale, or to its entirety. The reason behind this could be the traced to the uneven advancement made in recycling technologies. In some instances, the advanced recycling technologies are not affordable or accessible to all.  (https://www.resourcepanel.org/reports/metal-recycling)         

Opportunities and Threats

Some countries generate more metal scrap than others. In this case, there is an import/export of recycled metals/metal scraps. While metal recycling business faces its own challenges at some levels – it can be a bigger opportunity for the industry on global scale. For example, in the year 2018, demand for steel was slow in China. However, it corresponded with a rise in the rest of the world. One of the biggest reasons was the strength of the USA economy. It resulted in increased demand for recycled metals in the North American region. (https://global-recycling.info/archives/4094)

With the on-going pandemic, demand for recycled metals has seen a surge – especially as prices for copper, steel, and other raw materials have risen. (https://global-recycling.info/archives/4094). Metal recycling companies in Dubai see variety of metals in varying amounts of composition. Its biggest challenges lies in ensuring that scraps are recycled to its optimum limit. Lucky Group prides itself in contributing towards realizing its goal in contributing towards this cause on global level.

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