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Thread: Are scrap yards middlemen or melters?

  1. #1

    Default Are scrap yards middlemen or melters?

    Hi all So your comments about stacking scrap got me interested. Question: When you sell to a scrap yard are you selling to a middleman or do they melt metal on site?

    If they don't melt, they must sell it to someone further upstream, probably a melter. Is it possible to cut out the middleman and get a better price by going upstream directly? Or do the upstream players require lots that are too large?

    Thanks for your feedback.

  2. #2

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    I believe that concerning iron and steel scrap, most of it goes over-seas as shred to be refined and re-used. Several years back when scrap iron was at the highs, most of it was going to China for their building boom.

  3. #3

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    Quote Originally Posted by LeadHead View Post
    I believe that concerning iron and steel scrap, most of it goes over-seas as shred to be refined and re-used. Several years back when scrap iron was at the highs, most of it was going to China for their building boom.
    Good to know, thanks.

  4. #4

    Default

    For what I have seen the role of the scrap yard is to collect the material and prepackage it in lots that the upstream accepts.

    I'm pretty sure that if you can pack it (think a few metric tons, palleted or boxed as per their specifications) the upstream will be happy to take it. I have seen the palleted stuff that goes out of there, it is not something you can carry on a pickup truck.

    If you want to cut the middle man the best angle is retail. I'm helping my daughter build her first $1k for her brokerage account (she has her own silver stash, thanks for asking) and currently we are doing it by retailing lead. I can get wheel weights at .50c a pound at the local yard, she retails it for $1.20 a pound. Occasionally I get a bucket of wheel weights from the gas station for free but about 2/3rds of that is steel and zinc, it is more efficient to just buy the stuff clean and spend the time on the marketing and retail side. There is a guy on fleabay that sells home poured copper ingots.

  5. #5

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    Middle men, They have contract with larger yards to fill every month.
    I wish a buck was still silver, back when the country was strong. -The Hag

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