Post on 04-Apr-2018
7/30/2019 Buying and Selling Scrap Metal
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Ferrous Processing & Trading
Buying and Selling
Scrap Metal
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Understanding the Ferrous Scrap Market
Scrap Sources
Mill or Revert Scrap
Produced within the steelmaking operation
Prompt Industrial Scrap
Produced at manufacturing plants: blanking, punching, stamping,torch cutting, machining, rejections
Obsolete Scrap
Consumer and industrial discards of old steel-bearing buildings,structures, machinery, autos & consumer goods. Virtually of thisrequires processing prior to recycling (remelting).
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Understanding the Ferrous Scrap Market
Players in the Scrap Market
Scrap Generators
All of us..focusing here on automotive manufacturing plants
Scrap Collectors, Processors, Dealers
Compete with each other for raw material
Convert (process) as required to meet consumer specifications:
Reduce piece sizing: torching, shearing, shredding
Increase piece sizing: baling, briquetting
Increase bulk density: baling, shredding, briquetting
Improve metallic yield: shredding, shearing, hand sorting
Reduce tramp metals: shredding, shearing, hand sorting
Agglomerate / blend parcels for shipment
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Understanding the Ferrous Scrap Market
Players in the Scrap Market (cont d)
Scrap Brokers
Act as principals in scrap sales (taking ownership & selling)
Deal with a number of consumers and dealers
Provide fluidity of month-to-month scrap movements to
accommodate local & regional changes in supply / demand Exporters
Historically provided dock facilities for moving bulk cargos
New trends in containerized scrap shipments make domestic dealersand overseas consumers less dependent on export docks
Carriers
Truckers and Railroads
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Understanding the Ferrous Scrap Market
Players in the Scrap Market (cont d)
Consumers
Steel Mills
Conventional Integrated Steelmakers
Iron ore-based (80% hot metal, 20% scrap)
Historical buyer of automotive scrap (bundles)
No new mills in the US since 1962
Electric Furnace (Mini-mill) Steelmakers
100% Scrap or Scrap Substitutes
Major investments in flat-rolled market
Primary buyer of automotive scrap today
Foundries
Iron and Steel Castings
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Understanding the Ferrous Scrap Market
How the Scrap Market Works
Consumer versus supplier driven.scrap is bought, not sold
Suppliers have no long-term pricing power or control
Scrap is not manufactured, it is processed
No commodities exchange to establish pricing or futures
Economies of scale work in reverse:
Higher volume = Higher unit pricing
Price Elasticity
Obsolete scrap price elasticity perhaps .3 (10% price increase =3% increase in supply)
Industrial scrap is price INELASTIC
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Scrap Grades
Stamping Offal
Produced by stamping and blanking operations
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Scrap Grades
Stamping Offal-based Grades
#1 Bundles (Bales) from
Onsite or Offsite Baling Operation
Clipress (Busheling) from
Onsite Clipress Operation
#1 Busheling
Blanking or Punch Presses
#1 Shredded Clips from
Offsite Shredding Operations
RamPress Wafers from
Onsite RamPress Operation
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Scrap Grades
Machining-based Scrap Grades
Machine Shop (Steel) Turnings
Machining of Steel
Cast Iron Borings
Machining of Cast Iron
Hot Briquettes produced from
Cast Iron Borings
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Scrap Grades
Obsolete Scrap Grades
Scrapped Autos
Miscellaneous Unprepared
(Tearouts, demolition, etc)
#2 Shredded Auto Scrap
(Fragmentized)