In the scrap metal business, large transactions can be accomplished in very short periods of time. Wary identification of scrap, research and market participation are the paramount ways to make sure you’re not left scratching your head as your receipts come in. If you learn to price scrap metal meticulously, you will come to market equipped, which is your best defense.
Identify Your Scrap
It may seem palpable, but the very first step in figuring out how to precisely price your scrap metal is to appropriately identify it. With scrap falling into hundreds of various ferrous and non-ferrous categories, merely guessing that “These car parts are steel” or that “The red stuff is copper” isn’t going to get you very near to your scrap’s true value.
Use Analytical Instruments
Portable hand tools can identify the structure of unknown metals with astonishing accuracy and speed. X-ray fluorescence (XRF) analyzers can be carried into the field and trusted upon to give accurate measurements of even smidgen impurities in scrap metal. Make sure to invest in the best apparatus you can afford so that you can rely upon your instruments without question.
Factor in Extra Conditions
Though your buyer wouldn’t care, you’re going to have to eat the costs of warranting your scrap is in saleable condition. Scrap dealers and mills will only take scrap that is fairly clean and free of corrosion, so you may need a technique of cleaning your scrap before delivery. You may experience hitches in collecting and transporting the scrap, which can have a particularly big bearing on your profits on lower-value scrap.
Be Market Savvy
Based on confirmed sales and future trading, the metals markets and related publications are a great way to keep well-run on the ins and outs of scrap pricing. Involving yourself in the market as much as probable is the next step in gaining prized intuition and bargaining skills.
Consider the Real Costs of Your Scrap Transactions
Every scrap dealer in the world can’t pay exactly the same prices for the same scrap. First off, there is a price premium to use a dealer instead of selling straight to mills. The level of premium should be tied to the amount and quality of flexible services they offer. Scrap dealers must also factor in the expenses of delivering their recyclables if they are not close any end-users, and will also be accepting accountability for radiation screening and cleanliness.
Scrap Metal Sydney is your key to a successful scrap metal business! Call us on 02 9707 2955 or visit our website at ScrapMetalSydney.com for more details.