How to Set Up Your Scrap Yard?

Scrap metal business has a huge market because recycled and scrap metal is cheaper than pure metals, therefore a wide scope of businesses can benefit from buying these raw materials at a cheaper price. If you are thinking of starting a scrap metal business, you need to know and consider a lot.

First, you need to be able to identify and sort different metals. Buyers will purchase specific metals by weight.So you must can accurately identify your scrap for sale. To do this, a magnet is very useful, which can check the metal’s ferromagnetism. At the same time, you should know the difference of basic metal scrap kinds. For example, iron is ferromagnetic, strong, and lighter than most other metals except for aluminum. Pure copper is slightly pink, while lower grades are a reddish brown.Copper is non-ferromagnetic and slightly heavier than iron. Another point you should also remember is that within these basic categories, there are also many different grades with their own properties.

After you know some about the market, you can start to set up your own scrap yard or recycling center. First, you should find a place. Scrap yards require a lot of space to store and process materials. Different states, countries and municipalities have their own regulations regarding business and the collection and processing of materials. Check with state and city government offices so you can find a place where you can set up the kind of scrap business you want to have. Then you must ensure yourself have all the necessary licenses to open a salvage yard. If need, you also need to do an environmental impact study. They will test and verify the impact of your business on the surrounding ground water and ecosystems.

To keep the normal operation of your scrap yard, many things still wait for you to do. One thing is keeping track of metal prices. Check metal prices regularly to be aware of what to charge and what to pay for scrap. To do this, simply use the internet to search for”commodity trading prices.” Be sure to ask local contacts in case you area sells at a different rates.

Another thing is to invest in equipment and machinery. In order to sort your scrap, you will likely need to break down large items into smaller component parts. Some objects can be easily taken apart with simple tools, while others will require a machine. Take copper wire as an example. Most scrapper choose to strip it or granulate it to get the full copper value. At this moment, you need copper cable granulator or wire stripping machine. For other metal like steel with big volume, you may need scrap baling press while for aluminum cans, you may need metal crusher.

The last but not the least, you need to build network within the industry like building relationships with trucking services, other scrap yards and manufacturers that use recycled materials. The business is all about buying and reselling. Advertising on website and joining some related associates are also very helpful for letting people know your scrap yard and helping you find the buyers.

Of course, there are still many details you should pay attention to, but these are more important. Amisy Metal Recycling Machinery like to grow with you together!

How Do We Assess Present Scrap Metal Market

Whether you are a small-scale scrapper or a large scrapper yard or refinery, prices of scrap metals are always very important. When scrap prices are in downward trend for a long period, recycling rates decrease with the trend and scrap metal firms struggle to make profit. So how to judge the present scrap metal market？

Present Scrap Metal Price Is Stable

Herein, I pay more attention to copper and aluminum scrap. As I observe, the price of copper and aluminum scrap is stable and with a little increase(as shown in the following table).

Scrap Kinds	Price	Change	Change%	Unit
Al/Cu Radiators	1.01	0.01↑	1%	$US/Lb
Al/Cu Radiators/Fe	0.87	0.01↑	1.16%	$US/Lb
Aluminum Radiators	0.44	0.01↑	2.33%	$US/Lb
E.C. Aluminum Wire	0.70	0.02↑	2.94%	$US/Lb
#1 Copper Bare Bright	2.15	0.05↑	2.38%	$US/Lb
#1 Insulated Copper Wire 85% Recovery	1.59	0.03↑	1.92%	$US/Lb
#2 Insulated Copper Wire 50% Recovery	0.78	0.02↑	2.63%	$US / Lb
Copper Radiators	1.35	0.02↑	1.5%	$US / Lb
Cu/Al Radiators /Fe	0.87	0.01↑	1.16%	$US / Lb

Table.1 Parts of Copper and Aluminum price    Sourcing: Scrapmonster

Which Factors Influence Scrap Price

Keeping an eye on the scrap prices certainly can help you, but knowing what determines the current prices is also important because you can better assess the change in prices at your scrap yard. There are several factors affecting the prices of scrap metal commodities through the US and international scenes, that is, market Price, industry demand, quantity, location, time of year and international trading.

Although we ca see market price on LME or other site, it is not an expected price that a customer of a scrap yard would receive. Market prices are determined for commodities at the end of their life cycle.

Different industries such as construction, electronics and package directly affect the commodities market and scrap. If the electronics industry is slow, the demand for copper will go down and usually affect the price of the materials.

Quantity can influence the price to some extent. If a scrap yard hauls and ships more copper scrap than another location, their prices usually will be higher because they need more to keep its operation.

Also along with quantity, the location of the scrap yard has to do with the current prices..Those which is closer to ports will generally be able to pay more money tor materials because of less travel cost.

Just like the markets with the holidays, different times of the year and weather can greatly affect the output of new product. In turn, it will affect the demand and scrap price.

On a global scale, international trade is a large factor influencing scrap prices. Countries like China and India who have a large amounts of imports of scrap metal can affect the scrap prices globally.

Give An Objective Assessment by Yourself

Since we know the present market and the factors affecting scrap price, we can better assess the trend and what to do for future. Now it is a relatively good period for metal scrap market for its trend is up. How can we win a step? If you have adequate capital or ambition, you can buy some machine like copper cable granulator, radiator recycling machine, wire stripping machine,etc., which is good for improving efficiency and decreasing labor cost. With quality machine, accurate analysis and perfect recycling system, you can do better!