Sell aluminum cans directly to a smelter?

Originally Posted by gogert

Stevea41 -- a great question that I've also asked on another forum and never got a response. I plan on calling a big player like Alcoa or Novelis one day if my volume warrants it. Why not cut out the middle man and get the higher price that the yards get? The only problem is that top tier recycler is probably only interested in someone dealing in "x" number of tons of cans, and they would probably want them bailed. I'm guessing they may just refer a small-time collector back to the yard, or maybe even better and have you special deliver the cans to the yard for a higher price than normal. It goes without saying that a yard will typically give you 5 cents or more per pound if you have decent volume, say several hundred pound of UBCs.

I think you aren't reading the situation clearly. The yard is not the middleman, they are a necessary means to get the material to the mill. Yards have large costs and run on thin margins. Just because they get paid more money, doesn't mean they are making more money.

Additionally you are getting paid the day you drop the material off, avoiding market fluctuation as well as slow payment - 45 to 90 days (cashflow).

These mills require millions of lbs and they want minimum qualified suppliers.