Metal Wholesaling in Canada - Market Research Report

Nonferrous and Furious: Forecast Growth in the Global Economy Will Likely Contribute to Growing Demand from Certain Markets

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.

Metal wholesalers in Canada distributes metals and metal products to a variety of markets that use these products as inputs in their operations. Three manufacturing subsectors account for the bulk of demand for metals, including machinery manufacturers, fabricated metal product manufacturers and transportation equipment manufacturers. Demand from these segments has been mixed through the end of 2023 but has ultimately increased. Throughout the period, industry performance has been highly volatile in response to sharp fluctuations in the price of steel and iron. Industry volatility has also been influenced by the fluctuating prices of oil and natural gas, as this has knock-on effects related to demand from the attendant manufacturing and construction markets. Changes in consumer activity related to the COVID-19 pandemic also altered demand from downstream markets and continued the trend of volatility. Metal wholesaling revenue has been rising at a CAGR of 0.5% over the past five years and is expected to total $26.6 billion in 2023, when revenue will fall by an estimated 3.2%. Profit will decline due to rising wage and purchase costs. Operators in the Metal Wholesaling industry in Canada distribute primary metals and metal products to end markets. The majority of products distributed are ferrous, although the industry also distributes aluminum and other nonferrous metals. Operators may also perform functions such as sawing and cleaning on a custom basis and as part of the distribution service. The distribution of precious metals such as gold, silver and platinum is excluded from this industry’s operations.