how can I buy metal scrap ?

Hi

I live in Virginia and my brother in Pakistan started scrap business, he wants me to buy metal scrap from USA market and send it to him 500 MT's to 1000 MT's a month.
I was contacting scrap yard dealers from last few months but with no luck, everyone says they don't sell scrap. my question is how can I buy scrap from USA and export it to Pakistan
and what kind of licenses do I need.

Thanks in advance

RafShaf

I already tried that by going to different yards and meeting with yard managers but no one is willing to sell.
I will try lme hopefully it will work. Thanks KSS for your suggestion

Originally Posted by rafshaf

I already tried that by going to different yards and meeting with yard managers but no one is willing to sell.
I will try lme hopefully it will work. Thanks KSS for your suggestion

What is your pitch? I don't know anything about Virginia's regulations but unless your pricing isn't competitive or the yard has rigid supply lines it's usually not a problem. My first big clients were scrapyards and I bought from them just walking through the door even before I had a business license.

I have clients in Pakistan ,I was planning to buy 100 Mt's initially then 500 to 1000 per month. I also walked in to some yards in Virginia and some in Maryland but they don't give any detail on pricing and just refuse to sell.
I will keep visiting yards hopefully someone will sell.
Thanks JJ

Originally Posted by JJinLV

What is your pitch? I don't know anything about Virginia's regulations but unless your pricing isn't competitive or the yard has rigid supply lines it's usually not a problem. My first big clients were scrapyards and I bought from them just walking through the door even before I had a business license.

I have clients in Pakistan ,I was planning to buy 100 Mt's initially then 500 to 1000 per month. I also walked in to some yards in Virginia and some in Maryland but they don't give any detail on pricing and just refuse to sell.
I will keep visiting yards hopefully someone will sell.
Thanks JJ

Originally Posted by rafshaf

I have clients in Pakistan ,I was planning to buy 100 Mt's initially then 500 to 1000 per month. I also walked in to some yards in Virginia and some in Maryland but they don't give any detail on pricing and just refuse to sell.
I will keep visiting yards hopefully someone will sell.
Thanks JJ

Yards aren't going to give you pricing most times. They're gonna respond to your pricing. Set your pricing then send it to yards. If yours is as good or better than what they already have, you can lock in an order or two from them. Depending on the yard you'll also need to pass a credit background check so they can see you have the resources to pay.

I wouldn't presume to know .... but geopolitics may play a role.

Originally Posted by rafshaf

Hi

I live in Virginia and my brother in Pakistan started scrap business, he wants me to buy metal scrap from USA market and send it to him 500 MT's to 1000 MT's a month.
I was contacting scrap yard dealers from last few months but with no luck, everyone says they don't sell scrap. my question is how can I buy scrap from USA and export it to Pakistan
and what kind of licenses do I need.

Thanks in advance

RafShaf

Hi RafShaf,

All the scrapyards you went to sell scrap. But they might already have contracts to fill for where it goes or might have state or local regulations on who they sell it to. But they do sell it. The yard I'm working out of at the moment just today loaded three full truckloads of light iron for Pakistan (about 65 tons) so for sure you can make it happen. At a minimum you'll need a business license from the state of Virginia where you are and you'll probably have to get something from the following linke for the exporting end https://www.bis.doc.gov/index.php/licensing

Depending on how much you plan to store preparing to export you'll probably also need a solid waste permit for the storage of scrap metals unless you're buying containers full directly to port. But if you have a business license and the means to receive loads and do any physical prep for export, and if your buy price is competitive, you'll find sellers soon enough.

JJ

Originally Posted by JJinLV

Hi RafShaf,

All the scrapyards you went to sell scrap. But they might already have contracts to fill for where it goes or might have state or local regulations on who they sell it to. But they do sell it. The yard I'm working out of at the moment just today loaded three full truckloads of light iron for Pakistan (about 65 tons) so for sure you can make it happen. At a minimum you'll need a business license from the state of Virginia where you are and you'll probably have to get something from the following linke for the exporting end https://www.bis.doc.gov/index.php/licensing

Depending on how much you plan to store preparing to export you'll probably also need a solid waste permit for the storage of scrap metals unless you're buying containers full directly to port. But if you have a business license and the means to receive loads and do any physical prep for export, and if your buy price is competitive, you'll find sellers soon enough.

JJ

yea.... that lol. Well said, good stuff!

that what I thought they might already have contracts and don't want new buyers. I already have registered company ,I was planning to get export license when someone is willing to sell.
I will export it directly so I believe I don't need waste storage license .Looks like its not easy to buy scrap for new buyers with no buying history.

Originally Posted by JJinLV

Hi RafShaf,

All the scrapyards you went to sell scrap. But they might already have contracts to fill for where it goes or might have state or local regulations on who they sell it to. But they do sell it. The yard I'm working out of at the moment just today loaded three full truckloads of light iron for Pakistan (about 65 tons) so for sure you can make it happen. At a minimum you'll need a business license from the state of Virginia where you are and you'll probably have to get something from the following linke for the exporting end https://www.bis.doc.gov/index.php/licensing

Depending on how much you plan to store preparing to export you'll probably also need a solid waste permit for the storage of scrap metals unless you're buying containers full directly to port. But if you have a business license and the means to receive loads and do any physical prep for export, and if your buy price is competitive, you'll find sellers soon enough.

JJ

that what I thought they might already have contracts and don't want new buyers. I already have registered company ,I was planning to get export license when someone is willing to sell.
I will export it directly so I believe I don't need waste storage license .Looks like its not easy to buy scrap for new buyers with no buying history

I would just go to a metal store. Kinda like Goodwill, but for metals. They should have all you need.

Go into any place, have cash or certified funds, pay higher than what they are getting, have trucks ready to go to haul it away, follow all laws. 99% of any metal dealer will sell in the US to you.

I can see why the yards don't want to deal with you. You're going in on a whim. There's a difference between sniffing around and making offers. It's kind of like the guy who stops to buy a car on the side of the road with no posted price. They stop and ask because it might that little old woman who think the '69 Vette she has in the driveway all dirty and scummy is probably only worth like, 500 bucks. From the way it sounds, you're not serious. And if you have a buyer for what you get, they tell you what to offer.

Originally Posted by IamTheGreatest

I can see why the yards don't want to deal with you. You're going in on a whim. There's a difference between sniffing around and making offers. It's kind of like the guy who stops to buy a car on the side of the road with no posted price. They stop and ask because it might that little old woman who think the '69 Vette she has in the driveway all dirty and scummy is probably only worth like, 500 bucks. From the way it sounds, you're not serious. And if you have a buyer for what you get, they tell you what to offer.

how can you offer someone who says we don't sell. I'm willing to pay more than others, driving one yard to another takes time and if someone just refuse to sell and make and excuse that wastage of time.
how can I make an offer ? any suggestion ?. Thanks !

Make the offer. Offer a contract. You're not coming across serious enough. Not a long term offer. Make a "I want 20 tons now".

Originally Posted by IamTheGreatest

Make the offer. Offer a contract. You're not coming across serious enough. Not a long term offer. Make a "I want 20 tons now".

Thanks IamtheGreatest, that what I was looking for. so basically I should send them a contract with my offer more than others , some type of agreement that I will buy this much from you.

Originally Posted by IamTheGreatest

Make the offer. Offer a contract. You're not coming across serious enough. Not a long term offer. Make a "I want 20 tons now".

Thanks @IamTheGreatest,that what I was looking for, so basically I have to send them an contract with my offer including business and bank details etc, some kind of Agreement like I will buy this much from you.
just to prove that I'm a serious buyer. Thanks again.

Originally Posted by rafshaf

Thanks @IamTheGreatest,that what I was looking for, so basically I have to send them an contract with my offer including business and bank details etc, some kind of Agreement like I will buy this much from you.
just to prove that I'm a serious buyer. Thanks again.

I agree with this. Just showing up and asking a few questions about prices and amounts and stuff may come off as not a serious buyer and not someone they want to deal with. Also, for all they know you could be their competition just trying to get their pricing info/structure out of them so you can undercut them or for some other reason that would be detrimental to them.

I think if you go in there and say something along the lines of "I want to buy 20 tons for $X/ton, by next week. Here is my business card, and here is a paper detailing my offer. Is that something you are interested in?".... They may be more receptive. On that paper you can say when you want it by, how many tons you want, what price per ton you can pay, etc, etc.

Another thing that may be interesting to them is to offer the money upfront if they are worried about getting paid.... of course youd want to get a solid signed contract before turning over the money, but that would at least show you have the funds and are serious.