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Metal Wholesaling in the US - Industry Market Research Report

  • May 2017
  • 32 pages
  • Ibisworld
Report ID: 198838

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Slight rusting: Volatile metal prices have continued to plague industry revenue growth

Metal Wholesaling in the US

Operators in the Metal Wholesaling industry distribute primary metals and metal products to manufacturing, utilities and construction industries and businesses for end-use. Oversupply of steel, aluminum and other metals over the past few years has put downward pressure on prices, reducing the value of inventory and weakening the industry's profit margins. Recovering manufacturing and construction activity has spurred growing demand for metal inputs, underpinning some growth for metal wholesaler services. Even so, drastic price drops in steel and aluminum drove the industry into decline during the majority of the five-year period to 2017.

Moving forward, the Metal Wholesaling industry's performance will remain tied to conditions in key industrial markets and movements in primary metal prices. Sustained need for metals in key manufacturing, mining and construction industries will propel demand for industry services, especially as disposable income, business investment and interest rates continue to improve. The price of steel is expected to trend upward, after its decline over the past five years.

Metal wholesaling operators distribute primary metal products, both ferrous and nonferrous, to industrial and construction markets. Operators maintain inventory and may perform functions like sawing and cleaning on a custom basis and also as part of the distribution service. However, operators do not distribute precious metals, such as gold, silver and platinum, nor do they distribute insulated wire or recyclable metal scrap.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

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