← External Forces: Climate & Resource (all topics)
Secondary metal & scrap economics
What it is
Recycling aluminium uses roughly 5% of the energy of primary smelting, and copper and lead recycle indefinitely without property loss. Battery Waste Management Rules and EPR obligations formalise collection, while extruders earn a conversion margin over LME-linked metal
Informal recyclers operate outside hazardous waste compliance
Impact on industries
- The energy gap is decisive - secondary metal is structurally cheaper and far lower carbon, which matters as carbon border measures spread
- EPR and battery waste rules convert compliance into guaranteed feedstock demand for licensed recyclers
- Aluminium lightweighting in vehicles and packaging grows the downstream market independently of the recycling economics
- Scrap is fragmented and informal recyclers undercut compliant operators, while hazardous waste compliance is capital-heavy