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| Global Metal Recycling Leader Sims |
Sims expects higher second-half earnings in its North American metal recycling business. Stronger non-ferrous scrap markets and improved ferrous trading conditions support this positive momentum. The Australia-based recycler revised its fiscal 2026 full-year underlying EBIT guidance. The company lifted the outlook to A$420mn-A$435mn. Previously, the March forecast projected a range of A$350mn-A$420mn. Robust domestic demand and strategic market shifts underpin this significant guidance adjustment.
Strong North American Metals Performance Drives Guidance Revision
Operating divisions in North America spearheaded the company's financial growth. Specifically, North America Metals (NAM) and joint venture SA Recycling (SAR) delivered impressive margins. US ferrous scrap prices climbed steadily during the first half of 2026. The national average shredded scrap price reached $419/gross ton delivered mill in June. This represents a substantial $50/gross ton increase compared to June 2025. In contrast, a 50% tariff on imported steel successfully reduced foreign competition. Consequently, US domestic mills maintained exceptionally high utilization rates.
Non-Ferrous Price Volatility and Regional Market Divergence
Meanwhile, non-ferrous scrap markets experienced mixed dynamics throughout the current quarter. Prices for non-ferrous materials rose sharply from January to May on tight global supply. Firm export demand also accelerated early gains for global recyclers. However, zorba and copper scrap values retreated slightly in early June. This minor correction occurred after base metal prices fell on international exchanges. Additionally, Asian buyers lowered their bids due to shifting regional demand. Therefore, strong North American performance must now offset weaker trading conditions in Australia and New Zealand. Elevated Chinese steel exports continue to pressure Oceania's ferrous scrap sectors.
ScrapInsight Commentary
Sims' upward guidance revision underscores the high profitability of non-ferrous scrap processing amid tight global supply chains. Furthermore, protectionist US trade policies, such as the 50% steel tariff, continue to shield domestic scrap demand from broader macroeconomic slowdowns. Moving forward, the recycling sector must balance regional margin compressions in Oceania against robust data center decommissioning volumes in the circular economy.
