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Scrap metal market booms despite increasing energy prices

The UK metal recycling industry has grown in volumes and sales during the past year but profitability has been hit by environmental taxes, according to market analysts.

In 2013, sales in the sector were up 3.4% year-on-year and volumes increased 2.6%, according to Metal Recycling, a study from market intelligence information provider KeyNote.

It also found increasingly high energy prices - driven up by a number of EU and UK environmental taxes - have hit the profitability of the sector.

The report says some recyclers had moved their facilities overseas to benefit from lower energy prices.

But it noted that the Government’s recent Budget had introduced concessions, including a freeze of the carbon tax, which could reduce energy bills and help the metal industry to grow.

The research indicated that the industry generates over £5bn per year in revenue and provides more than 8,000 jobs and services to other industrial sectors such as manufacturing, engineering and construction.

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