Global metal recycling leader Sims has raised its full-year fiscal 2026 underlying earnings guidance, driven by robust non-ferrous scrap markets and stronger ferrous trading conditions in North America. The Australia-based company adjusted its underlying earnings before interest and tax (EBIT) forecast for the year ending June 30 to a range of A$420 million to A$435 million ($297 million to $308 million), up from its previous March outlook. Strong operating performance across its North American metal recycling businesses has successfully offset ongoing market headwinds in the Asia-Pacific region.
North American Metals Performance Drives Growth
The primary driver behind Sims’ upgraded financial outlook is the strong operational performance within its North American divisions. This includes both North America Metals (NAM) and its prominent joint venture, SA Recycling (SAR). The region benefited from a steady climb in US ferrous scrap prices during the first half of 2026. Domestic shredded scrap averages reached $419 per gross ton delivered mill in June, marking a $50 per gross ton increase compared to the previous year.A strict 50% tariff on imported steel effectively restricted foreign supply into the United States. This policy trade wall sustained robust domestic steel mill utilization rates. Consequently, it generated consistent, healthy demand for domestic ferrous scrap inputs.
Non-Ferrous Volatility and Regional Divergence
Non-ferrous scrap prices climbed sharply between January and May due to tight regional supply and firm export demand. However, this momentum experienced a partial retreat in early June. Prices for copper scrap and zorba—a mix of shredded non-ferrous metals consisting primarily of aluminum—softened after benchmark base metal prices dipped and Asian buyers adjusted their bids downward.Despite this late-quarter non-ferrous volatility, the strength in North America remains sufficient to counteract weaker recycling markets in Australia and New Zealand. The Oceania divisions have faced intense pressure from elevated Chinese steel exports. These cheap exports have consistently deflated regional ferrous pricing power across major Asian trading hubs.
Data Centers Support Electronic Waste Volumes
Sims Lifecycle Services, the company’s e-waste and data center decommissioning arm, is projected to deliver an underlying EBIT between A$170 million and A$175 million. This specialized division has enjoyed stable revenue from global data center construction and modern cloud infrastructure expansions.The company noted that corporate decommissioning programs can fluctuate seasonally. This dynamic introduces slight variability to intake volumes and earnings. However, the long-term trend remains firmly supported by continuous hardware upgrades within the technology and enterprise server sectors.
Market Impact
○ Impacted Metals: Ferrous shredded scrap, zorba, copper scrap
○ Direction: Bullish
○ Time Horizon: Near-term
○ Affected Industries: Steelmaking, aluminum smelting, electronic recycling, cloud infrastructure
○ Related Price Reports: Copper Weekly Price Report, Aluminum Weekly Price Report
○ Watch Item: Monitor whether US steel mill utilization rates hold steady amid broader macroeconomic adjustments in Q3 2026.
SuperMetalPrice Commentary:
Sims’ upgraded earnings outlook highlights a stark regional divergence in the global scrap supply chain. While North American metal recyclers are shielded by protective trade tariffs that preserve domestic steel mill demand, the Asia-Pacific market remains vulnerable to the overflow of cheap Chinese steel exports. The profitability boost from non-ferrous scrap like zorba and copper underscores how tight global supply and green manufacturing mandates are keeping scrap materials highly valued, despite temporary dips in benchmark exchange pricing.
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