Page 1 of 2 12 LastLast
Results 1 to 20 of 22

How much profit do the scrap yards make per pound?

| General - Let's talk business
  1. #1
    mikenofx2000 started this thread.
    SMF Badges of Honor


    Member since
    Jun 2011
    Location
    Aliquippa, Pa
    Posts
    25
    Thanks
    16
    Thanked 18 Times in 11 Posts

    How much profit do the scrap yards make per pound?

    Ive been selling mostly P & S to a yard that is famiy owned because they are smaller and easier to deal with. There are 2 other yards within a mile drive and both of the smaller yards sell to the one big yard. Last weekend i checked prices at all 3 yards and they were all the same, so i used the small yard like normal. On my way to the yard it was 730 in the morning before the yard opened and i saw the family yard i use hauling their dumpster full to the big yard. My question is if they paid me 13.00 per hundred what do they make when they sell to the big yard? It has to be enough to want to deal with 100 different people and to sort and move around before they sell.






    Mike


  2. #2
    newattitude's Avatar
    SMF Badges of Honor


    Member since
    Jun 2011
    Location
    Hinckley Ohio, home of the buzzards
    Posts
    2,163
    Thanks
    1,431
    Thanked 2,479 Times in 903 Posts
    I've always wondered too. For instance, if my yard pays me $2.80 lb for #2 copper, what do they sell it for to the bigger guys? I would think it would have to be at least twice as much because I can't see them paying me $2.80 and them only getting $3.50 a lb for it. Or something along those lines.

  3. #3
    SMF Badges of Honor


    Member since
    Jun 2012
    Location
    Jamestown, MI
    Posts
    50
    Thanks
    0
    Thanked 59 Times in 24 Posts
    The profit margins are a lot smaller than you may think. When I was running a yard last summer we made about. .50-.70 cents on copper and $50 a ton on sheet metal.

  4. The Following 2 Users say Thank You for This Post by diesel:


  5. #4
    SMF Badges of Honor


    Member since
    Jun 2012
    Location
    Fort Lauderdale FL
    Posts
    38
    Thanks
    6
    Thanked 21 Times in 11 Posts
    Well i have just sold my intrest in a yard located in South Florida I have a non compete so i am getting into the E-waste end of the Industry.I CAN TELL YOU THAT THE MARGAINS ARE NOT AS BIG AS YOU THINK,We do a large volume and if we make 40-50- a ton on shredabile we were doing good Copper is not realy a money maker 20-30 cents a lb is great the money is in the blind iteams electric motors,compressors stainless is ok also the money is made when loads are droped off as shred and thy leave the motors wires and miss non ferrous attached.

  6. #5
    SMF Badges of Honor

    Member since
    Jun 2012
    Location
    Australia
    Posts
    7
    Thanks
    2
    Thanked 0 Times in 0 Posts
    Yea it's mainly the quantity they can turn over is how they will make there money.. They probably have a deal with the bigger yard on large lots of scrap..

  7. #6
    SMF Badges of Honor


    Member since
    Nov 2011
    Location
    Florence,Co
    Posts
    242
    Thanks
    93
    Thanked 161 Times in 86 Posts
    I usually make anywhere from 10% (shred) to 30% on material that I do not process. smaller yards usually make a better percentage than larger ones...but larger yards move such high quantities they make more overall. It is very tricky running a yard, some customers will scam you,prices drop in the market and you are left "holding the bag", and you have to properly evaluate material that is being brought in. This is a very,very competitive business.

  8. The Following 3 Users say Thank You for This Post by Area67:


  9. #7
    SMF Badges of Honor




    Member since
    Mar 2012
    Location
    ks
    Posts
    2,159
    Thanks
    2,495
    Thanked 2,085 Times in 875 Posts
    Not to mention overhead, and wages, running a sucessful yard is tricky At best
    Alvord iron and salvage
    3rd generation scrapper and dam proud of it

  10. The Following User Says Thank You to taterjuice for This Post:


  11. #8
    SMF Badges of Honor


    Member since
    Jan 2013
    Location
    Midwest
    Posts
    18
    Thanks
    38
    Thanked 9 Times in 6 Posts
    I live next to a large scrap yard.
    I talked to the owner one day and asked why they didnt pay more for scrap. (competion was 10-20 higher per ton)
    His answer was great.
    They don't want to work that hard and they set a goal of 200,000 tons per year.
    Any more than that and trucking becomes a problem.
    They are currently building a rail spur to load onto trains.
    Hopefully that increases the price.

  12. #9
    BurlyGuys's Avatar
    SMF Badges of Honor


    Member since
    Feb 2012
    Location
    Waterford Michigan
    Posts
    1,568
    Thanks
    1,068
    Thanked 1,582 Times in 619 Posts
    Quote Originally Posted by quaz View Post
    They are currently building a rail spur to load onto trains.
    Hopefully that increases the price.
    Nah, just will increase their profits.
    Slaying dragons and rescuing damsels in distress. It's just what we do.

    Also, Burly Smash!


    John Terrell
    Burly Guys Junk Removal LLC
    4885 Highland Road
    Waterford, MI 48328
    (248) 224-2188

    http://www.burlyguys.com

  13. #10
    BurlyGuys's Avatar
    SMF Badges of Honor


    Member since
    Feb 2012
    Location
    Waterford Michigan
    Posts
    1,568
    Thanks
    1,068
    Thanked 1,582 Times in 619 Posts
    "We pass the savings on to you" is always a lie...

  14. The Following User Says Thank You to BurlyGuys for This Post:


  15. #11
    EcoSafe's Avatar
    SMF Badges of Honor



    Member since
    May 2011
    Posts
    3,705
    Thanks
    3,710
    Thanked 6,764 Times in 1,947 Posts
    Like I said before, in scrapping size does matter. it's all about volume, volume, volume.
    "anyone who thinks scrappin is easy money ain't doin it right!"

  16. The Following User Says Thank You to EcoSafe for This Post:


  17. #12
    NobleMetalWorks's Avatar
    SMF Badges of Honor

    Member since
    Sep 2012
    Location
    East Bay California
    Posts
    665
    Thanks
    293
    Thanked 1,861 Times in 504 Posts
    I think it all depends on who the scrap yard is selling to or how it's being processed. Copper all day long is awesome if you are having it refined, representing it and asking for a full accountability. If you refine 5,000 lbs of copper II for example, that leaves you with 95lbs of other metals. Copper II is only refined to 99.9, which leaves .19 of other metals you can recover the other values associated with the copper, which are more than likely to be worth far more than the copper itself because a percentage of them is going to be gold, silver and maybe platinum or other PMs.

    A lot of scrap yards are selling their scrap outside the US now, because they get better pricing, and there is a lot more copper refining outside the US rather than inside the US. Most scrap yards are too far away from a copper refinery to make it cost effective to have it processed here, specially when China and India are so willing to pay the extra to obtain it. It's sad, very sad, that the US is allowing so much metal worth so much to leave our shores only to re-purchase it again in the form of consumer goods and building supplies. Makes me sick to be honest.

    In any case, a very savvy scrap yard can make double on copper if they are geographically close enough to a metal refiner to make it worth their while. Otherwise, it seems most scrap yards are just selling to another larger scrap yard down the line.

    Scott
    At the heart of science is an essential balance between two seemingly contradictory attitudes--an openness to new ideas, no matter how bizarre or counterintuitive they may be, and the most ruthless skeptical scrutiny of all ideas, old and new. This is how deep truths are winnowed from deep nonsense. -- Carl Sagan

  18. The Following User Says Thank You to NobleMetalWorks for This Post:


  19. #13
    SMF Badges of Honor

    Member since
    Apr 2012
    Location
    knoxville, tn
    Posts
    4
    Thanks
    2
    Thanked 0 Times in 0 Posts
    Our margin on copper is relatively thin (5-10%)--Probably move 250,000 lbs in a good year (we are a small yard). Fortunately, our good cash flow position over the years has given us the ability to speculate on cu. In other words, we try to buy alot when comex is low and sit on it until the markets improve. Many yards don't play around with this as you can get burned. But if played correctly--our margins can improve to 10-15%. That's the plan anyway... Sometimes it isn't that easy. When comex is high we buy and turn red metals as fast as possible.

    Someone mentioned it earlier... the wide-margins are in some of the non-sexy items (motors, sealed units, insulated wire, batteries and lead, coils, stainless and scrap iron-(for us anyway).

    Volume is essential for the larger yards (where margins are smaller) but we try to find a good balance between volume and margins. It costs a lot money to be a high-volume yard (Eqpmnt, labor, supplies). It's not easy work running/owning a yard... I see these yards popping up everywhere now and I wonder if they know what they are getting themselves into. Good luck everyone!

  20. #14
    SMF Badges of Honor

    Member since
    May 2011
    Location
    Saint Louis, MO
    Posts
    762
    Thanks
    15
    Thanked 893 Times in 348 Posts
    Non sexy items I love it can we add torch material to this list of non sexy items. 50 dollars a ton for scrap steel is typical when you are talking about shred material and prepared iron. Most people don't consider shipping cost, labor, huge diesel chugging material handlers, crazy insurance and workers comp, Salesman account bonuses, keeping the lights on, upkeep on trucks, etc. All of that is figured into the cost of there buying price and whoever they can sell it to for the highest price. Keeping processing prices as low as possible is the aim of every yard. Turn around has to be lightning fast in order to bust off that huge profit.

  21. The Following User Says Thank You to PistoneScrapProcessing for This Post:


  22. #15
    gustavus is offline Metal Recycling Entrepreneur
    gustavus's Avatar
    SMF Badges of Honor


    Member since
    Sep 2011
    Location
    Canada
    Posts
    1,209
    Thanks
    972
    Thanked 912 Times in 423 Posts
    Quota, premiums and penalty’s creates competition among smaller yards unless they have a monopoly in your neighbourhood.

    Quota is one reason yards are willing to up the price for incoming volume over the guy only bringing in a couple hundred pounds of copper or aluminium. It assures the yard owner will meet his quota.

    In another lifetime hauling scrap cars I formed a union with several other haulers upping the tonnage we brought in under a common name enabling the group to benefit on premium pricing.

    If you have the space to store wrecks you'll get paid premium prices from the guys who make the circuit doing the crush, plus you save on fuel by marshaling your inventory. When I had my yard in BC, we relied on the non ferrous to keep bread on the table, this material I would haul into Vancouver once a month while waiting for the crusher to make his yearly appearance.

    With each monthly or bi monthly haul of non ferrous i would have enough material to get my premium pricing. So you really dont have to haul serious tonnage daily to get this price, yards owners form bonds with regular guys who bring in tonnage, speak a different language. Yards seldom cheat if at all the heavy hauler.

  23. #16
    SMF Badges of Honor


    Member since
    Oct 2012
    Location
    Sacramento, CA
    Posts
    1,256
    Thanks
    427
    Thanked 1,205 Times in 598 Posts
    Prices are all over the board within a few miles from me. For example, $0.40 to $1.10 for #2 insulated. The place that pays $0.40 pays on the spot which is why it is so cheap. I don't know how they get away with it...they're not a new yard.

  24. #17
    gustavus is offline Metal Recycling Entrepreneur
    gustavus's Avatar
    SMF Badges of Honor


    Member since
    Sep 2011
    Location
    Canada
    Posts
    1,209
    Thanks
    972
    Thanked 912 Times in 423 Posts
    Quote Originally Posted by rawresale View Post
    Prices are all over the board within a few miles from me. For example, $0.40 to $1.10 for #2 insulated. The place that pays $0.40 pays on the spot which is why it is so cheap. I don't know how they get away with it...they're not a new yard.
    My guess would be that the yard pays less has a lot of walk in traffic pushing a shopping cart full of last nights pickings.

  25. #18
    TheRecycler's Avatar
    SMF Badges of Honor


    Member since
    Jan 2013
    Location
    Ithaca, NY
    Posts
    616
    Thanks
    31
    Thanked 399 Times in 197 Posts
    Hey Guys, I have a gift for you. I go to this site and check the price the yard sells for to determined if what I'm getting is fear. Here is the site, pass it on;

    Metal Scrap Recycle Market Free Price List Sell Buy Purchase Dealer Waste - SCRAPTIMES.COM
    Your Trash-My Cash
    Yours Truly, TheRecycler:
    RecycleReuseItAll@Facebook.com

  26. #19
    Mechanic688's Avatar
    SMF Badges of Honor



    Member since
    Mar 2011
    Location
    Warsaw , Ind. In the heart of the lakes, and down the street from the hotel where Al Capone stayed.
    Posts
    9,578
    Thanks
    11,248
    Thanked 10,621 Times in 4,697 Posts
    That sites prices are very deceiving cause their prices are based upon 20 ton (40000lb) at a time.
    P & M Recycling - Specializing in E-Waste Recycling.
    If you enjoy your freedom, thank a vet.

  27. #20
    TheRecycler's Avatar
    SMF Badges of Honor


    Member since
    Jan 2013
    Location
    Ithaca, NY
    Posts
    616
    Thanks
    31
    Thanked 399 Times in 197 Posts
    Nothing is ever exact or clear cut, like I said, its a good indicator to see if you are getting a fear price at the yard.


  28. Similar threads on the Scrap Metal Forum

    1. 3000+ pound pcb scrap lot in georgia
      By jghilino in forum General Electronics Recycling
      Replies: 6
      Last Post: 11-05-2012, 08:32 PM
    2. How can some one make a profit if ...
      By drewan in forum General - Let's talk business
      Replies: 10
      Last Post: 06-06-2012, 08:56 PM
    3. Is there a scrap profit opportunity here?
      By Jeremiah in forum Scrap Metal Questions and Answers
      Replies: 4
      Last Post: 03-03-2012, 09:16 PM
    4. JackTheScrapper How To Scrap A Car For Maximum Profit $$$$$
      By jackshmuc in forum Scrap Metal Videos
      Replies: 7
      Last Post: 12-21-2011, 01:11 AM

Page 1 of 2 12 LastLast

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

 
Browse the Most Recent Threads
On SMF In THIS CATEGORY.





OR

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

The Scrap Metal Forum

    The Scrap Metal Forum is the #1 scrap metal recycling community in the world. Here we talk about the scrap metal business, making money, where we connect with other scrappers, scrap yards and more.

SMF on Facebook and Twitter

Twitter Facebook