Metals Recycling Industry Structure

Canada's metals recycling sector is both mature and extensive, comprising in excess of 2800 firms geographically diffused across every province and territory. Virtually every major Canadian community is serviced, in some manner, by a Canadian metals recycler.

The individual firms comprising the Canadian metals recycling industry vary widely in size, scope and level of sophistication. The infrastructure of this industry has been likened to that of a pyramid in which a large number of small and medium-sized enterprises form the base of the pyramid and a smaller number of larger, more sophisticated firms occupy the apex. Regardless of a firm's position in the pyramidal structure, all perform vital, inter-related activities and are reliant upon each other for the smooth, efficient functioning of the collection, recycling and recovery activities.

For a definition of the industry subsectors contained in the pyramid, click on that section of the pyramid.

Consumer/End User of Recycled Metals

Firms that use recycled metal as a raw material component in the production of semi-fabricated or fabricated industrial or consumer products.

Wholesaler/Processor

Operations that process and prepare industrial tonnages of recyclable metals to meet international specifications and standards for sale on domestic and international markets.

Dealer/Processor

Operations that process recyclable metals in varying degrees (sort, segregate, bale, shear, cut, grade) for sale to larger, usually domestic wholesalers/processors.

Collector

Entities that may collect and transport recyclable material in small or larger quantities arising from residential, commercial or institutional sources to intermediate processing facilities or final consumers. Does not normally include operators of recycling facilities. Engages typically in limited processing of materials to any significant degree.

Generator

Any entity can generate scrap metal as a direct or indirect result of their core activity. The larger generators are the manufacturers that use metal to build products. These types of businesses will have collection contracts with one of the other sub-sectors. The automotive scavenging and parts industry also generates metal scrap that flows into the recycling industry. Other generators include municipalities that have drop-off depots or curbside collection of scrap metal. 

Broker/Trader

Act as a principal agent in the purchase and sale of recyclable metals, having legal control of the recyclables from time of purchase to sale and may arrange and/or facilitate the international movement of recyclables destined for recovery operations.