I just dont get it!!!

Dont understand why you would want to lose money just to win auction..lol
Coated Copper Wire - GovDeals.com

It's done on speculation. Also, the buyer is likely a scrap yard owner or exporter and can pay higher than you or I and still show a profit. I ran into that the other day at an auction where were several lots of copper wire I planned on bidding. A local yard owner was there and stated that nobody but him would be getting any wire. He actually owned several yards and was multi-millionaire. For instance, one lot I figured I could bid $300, strip it and still have some profit. I bid it to $250 and he countered with $500. He's not stupid - I figure he knows something I don't.

To me thats just crazy...after stripping it you have 827 lbs...and at 3.25 lb....it figures out to $2688...Profit wont even pay the taxes on it..lol

I work at a yard and I've seen the owner literally make only 3-5 cents a lb on things just depends on volume and alot also have machines that process it trust me how he ever makes money on 3 cents ill never know

It could also be someone planning on using some of it.

That is also true I buy alot of wiring that comes through that is still usable I see it kind of like investing when I build my shop ill have wire or if the market shoots up ill sell it all lol

Someone could also be buying material to make what they have more valuable. If you have, say 1000lbs of #1 copper, your negotiating power is less than with 2,000 lbs.