Questions You May Have About Selling Scrap Metal

If you're thinking about taking materials to a scrap metal yard, you likely have some questions about how the process works. Fortunately, the scrap metal recycling business is relatively standardized across most regions of the United States. Folks who are interested in finding a scrap metal recycling yard may be interested to hear the answers to these three questions.

How Is the Price Set?

Scrap metal buyers start by looking at the spot prices from the commodities markets for non-recycled materials, given that the folks they're turning around and selling to will always want a discounted price relative the best possible options. These spot prices in the US are typically derived from New York Mercantile Commodity Exchange, sometimes called the COMEX, and some yards also use the numbers from the London Metal Exchange if they have overseas buyers of the materials they recycle.

Recycled metal prices tend to be significantly lower because they reflect the fact that getting down to base metals is difficult, making purity inherently questionable. There are also concerns about wear and tear.

The majority of materials are priced by the pound. Some items, particularly heavy sections of steel, may be priced on a per-ton basis.

What's With Rating the Scrap?

There's no formal structure in place for rating the quality of the materials that arrive at a scrap metal recycling facility. Consequently, the grading of metals is always done on site by someone from the business. There is always the question of how much work will have to go into extracting a sellable product. For example, having to clean up aluminum or shred steel takes additional work, especially if it has to be separated from other materials that can't be sold.

Many sellers go to the effort to make products more sellable for scrap metal buyers. This may include doing things like burning the outer coatings of copper wiring.

What's the List of Accepted Materials?

While every location is likely to have a few variances in what it buys, you can expect most major types of metals to be purchased. This includes copper, steel, aluminum, and brass. Depending upon local regulations, they may also accept lead.

It's also normal for a scrap metal yard to acquire items that have to be torn down, such as vehicles and motors. If you're hauling a heavy load, though, call ahead.

To learn more, contact scrap metal buyers in your area.

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