SRG Expands Low-Copper Shred

Southeast Recycling Group will acquire NuCycle and merge with Morris Scrap Metal, creating a larger regional scrap platform with expanded ferrous scrap, non-ferrous scrap, and low-copper shred production capacity in the southeastern United States.

SRG Adds Shredder Capacity Through NuCycle Acquisition

Southeast Recycling Group, known as SRG, plans to buy Rock Hill, South Carolina-based NuCycle, which operates under the Palmetto Recycling name. The acquisition gives SRG access to an established automotive shredder instead of building a new shredding operation at one of its existing sites.

The acquired equipment includes a 4,000-horsepower, 80×108-inch Danieli shredder. For scrap buyers and steel producers, the key feature is the shredder’s ballistic separator, which can produce a lower-copper ferrous scrap product. Copper contamination remains an important quality issue in electric arc furnace steelmaking, especially for mills targeting cleaner flat-rolled, automotive, and higher-specification steel grades.

Low-Copper Ferrous Scrap Becomes More Strategically Valuable

The NuCycle shredder also includes downstream recovery equipment for non-ferrous scrap, giving SRG added exposure to aluminum, copper, stainless steel, and other recovered metals from end-of-life vehicles and mixed scrap streams. This improves both yield recovery and product flexibility across ferrous and non-ferrous markets.

Low-copper shred is increasingly relevant as steelmakers demand cleaner scrap units to manage residual chemistry. As more EAF capacity enters the US market, processors with separation technology and better scrap upgrading capability may gain a stronger commercial position with mills seeking reliable feedstock quality.

Morris Scrap Merger Builds a Larger Regional Scrap Network

In a separate transaction, Kings Mountain, North Carolina-based Morris Scrap Metal will merge into SRG as a new partner. After both deals close, SRG is expected to operate seven locations with annual capacity of 300,000 gross tons of ferrous scrap and 150 million pounds of non-ferrous scrap.

SRG was formed last year through the merger of Carolina Metals Group and Spartan Recycling Group. The NuCycle acquisition and Morris Scrap merger show a continued consolidation trend in the US scrap recycling sector, where scale, logistics coverage, processing technology, and product quality are becoming more important competitive factors.

Market Impact

○ Impacted Metals: Low-copper shredded ferrous scrap, obsolete ferrous scrap, automotive shred, zorba, recovered aluminum scrap, recovered copper scrap, stainless steel scrap

○ Direction: Bullish

○ Time Horizon: Near-term to medium-term

○ Affected Industries: Scrap recycling, electric arc furnace steelmaking, automotive recycling, non-ferrous recovery, steel mills, secondary metals processing

○ Related Price Reports: Stainless Steel Weekly Price Report, Copper Weekly Price Report, Aluminum Weekly Price Report

○ Watch Item: Monitor whether SRG’s low-copper shred output secures stronger demand from EAF steelmakers seeking cleaner ferrous scrap feedstock.

SuperMetalPrice Commentary:
SRG’s move is more than a regional scrap acquisition. By buying an existing shredder with low-copper separation capability, the company is positioning itself closer to the quality-driven side of the ferrous scrap market, where cleaner chemistry can carry more commercial value than simple volume.
For steelmakers, the deal highlights a broader shift in scrap procurement: processors that can separate, upgrade, and certify better scrap streams may become more important suppliers as EAF steel production continues to expand.