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How much do you break scrap down?

| Dismantling, Breaking Down & Maximizing Scrap

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  1. #16
    USGUYINCN is offline Metal Recycling Entrepreneur
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    If you can, find out what people are charging to break down the piece(s) in question. Start with the price you are getting for the whole piece. Let's say a motor. You have Motor A that buyers are willing to pay 1000 bucks / ton for whole. If the going rate to dismantle (or a calculation of the worth of your own time) is say 100 bucks per ton, and your dismantled motor is now (for the sake of simplicity) an iron housing (85%) and some motor wire (15%), then look at what the index prices / market prices are for the components (ie iron and motor wire). If the sum of the components are worth more that the un-dismantled price (1000) + the dismantle charge (100), then dismantle. If not, just sell the thing whole.



    Things we take in to consideration for dismantle are worker cost per ton, electricity, water, gas, etc., transport (if we need to send to another location to dismantle). Also, don't forget your "opportunity cost". Like a couple guys mentioned here, if you (or your workers) time is better spent finding new material or dismantling higher value pieces, or doing sales, or whatever, then you should calculate that into the cost of dismantle per hour, or add it in at the end. Also, storage. If you have no space, and you have some really great stuff to bring in, well, then just get rid of it.

    If you're in this business only for a profit, just run the numbers and see what makes sense. If you just enjoy dismantling then screw it... have a beer, put on some tunes, take everything apart, and enjoy!

    @parrothead: Man... the space problem never seems to end. The more you got, the more scrap you buy. I just replied to someone talking about "hoarding" material. If I had enough space in my yard I would dismantle everything and hold on to copper, gold, silver, nickel, etc. until prices were are record highs, but alas... is not an option.

    USG
    Last edited by USGUYINCN; 09-04-2012 at 05:49 AM.

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