Scrapyards have a specific purpose in that they collect waste metals that would otherwise be tossed in a landfill and convert them into scrap that can be reused. They serve as a clearinghouse or collection point for once-used items made from metal, then they sort that scrap and sell it to refiners who can convert the scrap into refined raw metals for industry and manufacturing. Since refiners are only interested in purchasing scrap in bulk, the scrapyard serves as a middleman between those who have small quantities of scrap metal to sell and refiners who need tonnage.
In the scrap business, the customers of scrapyards are the refineries that reprocess the metal back into its natural state. In other words, refineries transform finished metal products that were discarded back into raw materials that can be used in new manufacturing. Scrapyards also have the task of recruiting suppliers to meet the demand for scrap. In the case of the scrapyards, the suppliers could, for example, be anyone with a junk car or a fabrication business that has unused metal scraps that are otherwise discarded.
When you take scrap metal to a salvage yard, you may have no idea what it’ll be worth. There are two primary factors that are considered when determining the value of scrap metal. First, it’s tested with a magnet to determine its content. Ferrous metals, or metals that contain iron, will stick to a magnet. Nonferrous metals, or metals that don’t contain iron, such as copper, aluminum, or zinc, are usually assigned a higher value than ferrous metals. The second determining factor is the weight of the metal. The more the metal weighs, the more it’s worth.
Because of the laws of supply and demand, the prices offered for specific metals may vary significantly from day to day. Scrapyards may store scrap when prices are extremely low with the knowledge that they will eventually rise. They then sell when the price is high to realize the greatest profit. By that token, you should sell your scrap to the scrapyard when prices are high to get the greatest windfall.
If you have scrap metal and don’t know what to do with it, consider selling it to a scrapyard. Not only will you generate some personal revenue, but you’ll also be playing a role in the reuse of natural materials that would otherwise need to be freshly mined. To learn more about scrapyards and how the scrap business works, contact Fair Salvage Company at (989) 386-7552.
