Selling Scrap Metal

[RobbyZ5001]

Who does it? Any advice? Where do you find some of your metals?

[Tin]

Copper pipes in abandon houses, catalytic converters off cars, sneaking into the landfill or local dump at night etc...

;D

[SirSnookalot]

I owned a scrap metal company for 35 years.  Scrap is a large business that flies under the radar, most have no clue as to the inner workings of the business.  Sounds like your intention is to obtain scrap, then sell it to a dealer.  People always come out of the woodwork and try and get into the biz when commodities are at high prices.  My first bit of advice is to get a magnet.  My metals and iron ( non ferrous and ferrous) were purchased from industry, either by canvas or bid, then sold to mills, refiners, smelters and users.  There is a lot to say, by the way ripping out insulated wire from abandoned buildings is against the law  , but someone probably will have beaten you to it.  Not to be smug, but there isn't much I don't know about buying scrap metals, precious metals ( the latest fad) plastics and paper.

[Tin]

by the way ripping out insulated wire from abandoned buildings is against the law

I know, just being a smart***, so are the other two I mentioned. We had a lot of people always trying to steal scrap and batteries when I worked for the state landfill for a while. It is for the most part an all cash, no holds barred business if you ask some. Pretty crazy how competitive and scary people will get.

[SPEEDBEAD.]

Brotha man, has it come to this?

She finally put you in the red?   ;D

[lightsout]

Its really competive these days. I'm a materials manager in the wireless industry. I have about four diffrent people come by our warehouse almost daily seeing what we have. Ive gotten to know a couple of them as I'll alot them some scrap for odd jobs that I need done.

Its a great way to supplement your income, but not consitent enough to be good day in day out job. You have to be diligent and put yourself out there to alot of diffrent people. Some items will bring more if you take the time to seperate undesired items out (stripping the jackets off wire etc.) Also check around on pricing, it is negotiable at most places and prices vary from scrap yard to scrap yard.

[Tin]

Brotha man, has it come to this?

She finally put you in the red? ;D

[SirSnookalot]

Tin, I was typing my post before I saw yours posted.  I could give many types of stealing done in that biz, both from petty thieves to the dealers themselves who are by far the biggest thieves, it's the nature of the business, not an honest one anywhere in the world.  I love these ads on tv buying gold , I call it the scrap business with a tie, many are real predators as the average Joe knows nothing about gold and how to weigh it properly.

It isn't the cash business it once was, dealers are required to record transactions and limit cash purchases to $50, not everywhere but becoming more common.

[lightsout]

Also junk cars are bringing $400 bucks now at certain places. My step dad hauled away about 15 junkers from the family farm and made bank. Some places will require you to take the tires off but its worth the trouble.

[lynyrdsky1]

My dad has worked for Simms Metal Management for 30 years. It's one of the largest scrap companies out there. Copper right now is very high and so is tin. I may be wrong but, i think you need a license to sell copper if I'm not mistaken. Or it may just be at a certain weight that you have to be license to sell.

[SPEEDBEAD.]

My dad has worked for Simms Metal Management for 30 years. It's one of the largest scrap companies out there. Copper right now is very high and so is tin. I may be wrong but, i think you need a license to sell copper if I'm not mistaken. Or it may just be at a certain weight that you have to be license to sell.

LOL, yeah he is.

[SPEEDBEAD.]

What other way should I have said it? The price of Copper right now is very high and so is Tin. Is that better?

PM sent. Not making fun. 

[lynyrdsky1]

It's fine just got the joke haha.

[lynyrdsky1]

Also junk cars are bringing $400 bucks now at certain places. My step dad hauled away about 15 junkers from the family farm and made bank. Some places will require you to take the tires off but its worth the trouble.

You also have to make sure to drain all liquids such as gas and oil out of the car before you scrap and the oil pan must be removed.

[SirSnookalot]

In Michigan papers have top be filed with county, D.B.A., partnership or corporation to do business.  I'll say most cities in Michigan, I don't know about other states, require a city license or permit to conduct business in scrap metal.  An individual picking up scrap, known in the trade as a peddler, does not need a city permit or license.

I'm not as familiar about autos and junk yards, a different facet of the scrap business.

Prices are very high,they vary from region to region.  This recession was unusual as prices did not plummet but they normally do in a bad economy.  Whatever goes up, always comes down.

[lynyrdsky1]

Automotive, i thought, was part of the ferrous category. My dad's place is a scrap metal company but it excepts vehicles which are immediately destroyed, compacted, and shipped off.

You do have to fill out papers and require a license to sell scrap in TN, AL, MS, AR as far as I know. But like you said, a peddler doesn't need a permit for the usual but they will need it if the amount of material is of a high weight.

[Lund Explorer]

For the last few years, the west-central part of Michigan that I call home was prime pickings in the scrap business.  Lots of guys out picking up whatever wasn't bolted down and hauling it to the nearest scrapyard.  It wasn't all that unusual to see a half-dozen rust heaps sitting behind Farmer John's barn, but not anymore.  People were paying $100 for a junker and turning it into $400 within an hour or so.  It didn't take long to see all the easy pickings vanish.

Now, the popularity of the 18v. reciprocating saw has soared!  The farm behind us uses above ground irrigation (called pivots) on most of their fields.  A few of the neighborhood boys went out one night for a five finger discount and loaded the pcikup with pipe.  They were caught the next morning driving down the highway headed to the scrapyard.  The cops thought it looked funny for those big long pipes sticking out of the back end of a pickup.

Others have resorted to stealing full wire spools from electrical contractors.  This isn't residential stuff, we're talking power lines.  One high school found that half of their aluminum bleachers were missing!  A resort on a local lake lost all of the rowboats!

All I can say is Thank God that headstones are made out of stone..... They stole all the veteran's markers.

[SirSnookalot]

I was a registered company in Michigan, I did business in other states, selling them my scrap, no license was ever needed for me.

Each company has it's own items they specialized in, I never handled junk cars.  Ran across just about every industrial metal, I handled quite a bit of sintered metals ( powder metals), ni alloys, tin clad copper and serviced a number of steel stamping plants and heavy fabrication plants.  I started off as a peddler, then had a yard and shop, finally finishing as a broker.

[Tin]

It isn't the cash business it once was, dealers are required to record transactions and limit cash purchases to $50, not everywhere but becoming more common.

It is all good...

Yea, I used to bring pallets of 12v batteries to the local scraper from the landfill I worked at. They had a great system, they charged the customer $10 to drop it off then we would go and get $6 per battery at the scraper. He wore a big pair of Carhart overalls year-round. He had big-wads of money in every pocket but one, he had a gun in that one. lol

Then you would have to fight with him to get a reciept.  :

LOL - Speedbead

[Stasher1]

The scrap-hunters around here have been a real nuisance. They've been stealing the heavy grates that are supposed to cover the big drains on the highways and covering the holes with road signs or scrap wood.

You have to be extremely careful pulling into the "breakdown" lanes on 85/285 in Atlanta. You may find yourself falling into a huge hole.  ;D

[Fishing Rhino]

My dad has worked for Simms Metal Management for 30 years. It's one of the largest scrap companies out there. Copper right now is very high and so is tin. I may be wrong but, i think you need a license to sell copper if I'm not mistaken. Or it may just be at a certain weight that you have to be license to sell.

LOL, yeah he is.

You beat me to it.  But it does explain some of his posts.

[Tin]

I cannot believe you would say such a thing Beader and Rhino. I'm a true role model to youngsters and adored by so many on this site. I'am disgusted that someone would actually accuse me of such a thing. Even though I can easily have a prescription for it.  ;D

Now downing the Nitrous out of the whipped cream container...well....lol

Want to hit Stafford this year Rhino? I had multiple 80 fish days there last year and the average fish was around 2 pounds. Not one keeper smallie in 4 trips though. :'(

[K_Mac]

I worked for a couple of years doing installation of medical equipment, e.g. sterilizers, instrument washers, cart washers, etc. I dealt with a lot of stainless, brass and copper. Many times I would also do de-installation of the stuff my equipment replaced. I would always rent a truck, find a local scrap yard, and sell the scrap. I worked all over the Midwest and was never asked for any kind of permit or license. I always asked for cash, and was never refused. That has been a long time ago. There may be more regulation now, but I always got the impression it was a don't ask, don't tell sort of industry.

[Fishing Rhino]

Sounds good to me.  I'll have to get an RI license.  Easy enough to do online.  I can be there in less than ten minutes from my house.

Ever fished Devol Pond?  It's surrounded by private property.  No license needed.  I'm hoping to start fishing it by mid March.  The past two years have seen good jig fishing.  Not big numbers, three to four per hour on a good day, but averaging over two pounds per.

[SirSnookalot]

I worked for a couple of years doing installation of medical equipment, e.g. sterilizers, instrument washers, cart washers, etc. I dealt with a lot of stainless, brass and copper. Many times I would also do de-installation of the stuff my equipment replaced. I would always rent a truck, find a local scrap yard, and sell the scrap. I worked all over the Midwest and was never asked for any kind of permit or license. I always asked for cash, and was never refused. That has been a long time ago. There may be more regulation now, but I always got the impression it was a don't ask, don't tell sort of industry.

K_Mac, back in the day ss was real cheap and cash was no problem, things are different today.  Prices are high and many companies are disposing of the scrap themselves.  The type of metal shops you sold the scrap to are referred to as 'junk shops ".  I knew a guy that opened up at 5 pm and worked till 4 in the morning, he mostly bought hot merchandise, back in the 80's when I knew him he was spending 10-$20,000 a night, can you imagine how much money that would be today.

When dealing with industrial accounts, payment by check is by far the popular method.  Can't say cash is never involved, someone always has their hand out, I won't get into that on a public forum..lol.

Scrap dealers know every trick in the book about creative accounting.