Getting started in the scrap metal recycling industry is actually fairly easy. Just about anyone can start collecting and selling scrap metal for profit – you don’t need a significant capital outlay and in some cases,you may not need any capital at all!
Here are some simple tips to get started selling scrap metal for profit.
Start by understanding the different types of scrap metals
Scrap metals are broadly categorized as ferrous or non-ferrous. The easiest way to differentiate the two is to remember that ferrous metals stick to magnets while non-ferrous metals don’t stick to magnets. The most common ferrous metals are iron and steel while the most common non-ferrous metals are copper, aluminum, brass, and aluminum.
Get acquainted with local scrap yards
One thing most people don’t know is that scrap dealers can only buy certain types of scrap metals. No single dealer can buy everything from everyone. Sometimes your closest scrap metal recycler may not accept the types of metals you’re trying to sell. In that case, you need to have alternative solutions. Try finding multiple potential dealers on the internet and on Yellow Pages and build relationships with two or three dealers that you like most.
Understand how scrap metals are priced
Most people also assume that all scrap metals have the same price. That’s not true. Generally speaking, non-ferrous metals are scarcer and attract higher prices compared to ferrous metals. Copper, in particular, is valuable and very scarce and therefore attracts very high prices. Aluminum and steel, on the other hand, are some of the most common metals used the world over and as a result attract rather low prices.
Assemble the necessary tools and machinery
The first tool you need is a magnet for differentiating between ferrous and non-ferrous metals. A grinding wheel may also be needed to help identify the type of metal you have. Hammers, screwdrivers, a pocket knife, wire cutters, plies, drills, and pry bars may also come in handy at different stages. Then, you also need a truck or utility trailer to transport the material and tie down straps to secure the load.
Determine your best sources of scrap
These may include small businesses, auto repair shops, plumbing businesses, demolition sites, residential collection sites and so on. After identifying them, develop collection routes and a schedule outlining when you’ll visit each pick-up point.
With that, you’re ready to get started selling scrap metal for profit!Keep in mind that while scrap metal prices fluctuate demand is always very high.
