How to Set Up Your Scrap Yard?

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Scrap metal business has a huge market because recycled and scrap metal is cheaper than pure metals, therefore a wide scope of businesses can benefit from buying these raw materials at a cheaper price. If you are thinking of starting a scrap metal business, you need to know and consider a lot.

First, you need to be able to identify and sort different metals. Buyers will purchase specific metals by weight.So you must can accurately identify your scrap for sale. To do this, a magnet is very useful, which can check the metal’s ferromagnetism. At the same time, you should know the difference of basic metal scrap kinds. For example, iron is ferromagnetic, strong, and lighter than most other metals except for aluminum. Pure copper is slightly pink, while lower grades are a reddish brown.Copper is non-ferromagnetic and slightly heavier than iron. Another point you should also remember is that within these basic categories, there are also many different grades with their own properties.

After you know some about the market, you can start to set up your own scrap yard or recycling center. First, you should find a place. Scrap yards require a lot of space to store and process materials. Different states, countries and municipalities have their own regulations regarding business and the collection and processing of materials. Check with state and city government offices so you can find a place where you can set up the kind of scrap business you want to have. Then you must ensure yourself have all the necessary licenses to open a salvage yard. If need, you also need to do an environmental impact study. They will test and verify the impact of your business on the surrounding ground water and ecosystems.

To keep the normal operation of your scrap yard, many things still wait for you to do. One thing is keeping track of metal prices. Check metal prices regularly to be aware of what to charge and what to pay for scrap. To do this, simply use the internet to search for”commodity trading prices.” Be sure to ask local contacts in case you area sells at a different rates.

Another thing is to invest in equipment and machinery. In order to sort your scrap, you will likely need to break down large items into smaller component parts. Some objects can be easily taken apart with simple tools, while others will require a machine. Take copper wire as an example. Most scrapper choose to strip it or granulate it to get the full copper value. At this moment, you need copper cable granulator or wire stripping machine. For other metal like steel with big volume, you may need scrap baling press while for aluminum cans, you may need metal crusher.

The last but not the least, you need to build network within the industry like building relationships with trucking services, other scrap yards and manufacturers that use recycled materials. The business is all about buying and reselling. Advertising on website and joining some related associates are also very helpful for letting people know your scrap yard and helping you find the buyer.

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