Scrap Metal Myths and Misconceptions Explained
Explaining Myths and Misconceptions about Scrap Metal is a reoccurring theme for most scrap yard employees. It’s human nature to want to believe, especially when things seem to good to be true. Trust me I know, every year I convince myself that the Buffalo Bills will make the playoffs. Over the years I have tried to help educate my customer base the best I could. For the most part it worked and the lessons seemed to be appreciated. The Myths and Misconceptions below never seemed to fit into that category. For whatever reason these topics normally caused arguments, mistrust, hurt feelings and worst of all broken professional relationships. I hope this list clears the air and helps scrappers keep up a good relationship with their chosen recycler.
Scrap Metal Myth #5
Bigger isn’t always Better
Finding large over sized steel objects always feels like an instant win. That concept is very understandable. Conventional wisdom would say “this has to pay more than the refrigerator I sold here last week”. The truth is you are right and wrong. A large majority of Steel before it can be recycled must first be sent through a shredder before finally being passed on to a smelter. In order for this to happen the Steel must be first be cut down to certain sizes allowing it to safely pass through the shredders. Now it’s not all bad news, if you have the tools and are capable, scrappers can “prepare” the Steel before selling it. Simply call your favorite Scrap Yard and ask them for their (standards change from place to place) dimensions for prepared steel. Cutting the Steel yourself could bring on average an extra 3-5 cents per pound. Now on the flip side if you can’t prepare the Steel, someone has to. That is why most yards have an “un-prepared” or “torch steel” price that is normally lower than normal shred prices.
Scrap Metal Myth #4
Stainless Steel isn’t always Stainless Steel
Stainless Steel in the appliance world is more about the look than the real material. Remember scrappers the magnet is your most important tool. Every spring Scrap Yards become flooded with back yard grills. Out with the old and in with the new. It is rare that a “Stainless” grill is what it seems. The same could be said for most kitchen equipment. If there are Stainless components attached most times it is for decoration and accounts for very little of the total weight. The rule of thumb that I have always told customers, is unless you paid over $1000 it’s not very likely going to be all Stainless.
Scarp Metal Myth #3
Burning Copper Wire
I couldn’t possibly think of how many times I have tried to explain this misconception. First lets start with the legal side of this. I know in NC and probably every other state, burning copper wire is illegal. I could be wrong, there might be a state or two where this isn’t a problem, but I will speak for the state that I’ve worked in. So on top of facing a huge fine, the math behind burning wire makes no sense. Scrap Yard pricing is based on of copper recovery. If the wire is 35% copper the pricing normally reflects that. You are investing a lot of labor and legal risks for close to nothing in return. There are cases where customers have been taken advantage of and not paid correctly but that’s a whole different story. Here is the math based on the current market. Keep in mind prices vary and so do categories.
35% #2 ICW (common recovery) 100lbs @ .60= $60.00 sold as wire.
#2 copper 35lbs @ $1.75= $61.25 sold as burnt copper.
Scrap Metal Myth #2
Recovering Gold from E-Scrap
I’m going to handle this Scrap Metal tip in a classic true of false style. This is a highly debated topic. I am a huge believer in Risk Vs. Reward.
True in older computers and communication equipment there was a higher Gold content. Naturally technology has changed drastically, making manufactures less dependent on gold. What was once a $2,000 computer is now a $300 computer. At $1,200 per ounce how much Gold do you really expect to extract from a $300 product?
False Gold can be extracted in a safe manner by an amateur from home. According to this theory a Chemistry degree is a waste of time. The phrase long-term health risk is just that. Feeling healthy the next day does not translate to safe. Remember when Doctors smoked in hospitals? That changed once the long-term effects became obvious.
Please anyone reading this blog. Take this serious, there is nothing safe or profitable about extracting Gold from computers.
Scrap Metal Myth #1
Pop can tabs and their value
The reason that I chose Pop Can Tabs as my #1 Scrap Metal misconception is simple. Hope and heartbreak. Many times customers have approached me with milk jugs or larger quantities of pull tabs. In most cases it was obvious that they were saving up for that special moment to cash in huge. The myths about the value of tabs has varied. I have heard that the aluminum used is worth anywhere from $2.00 per pound all the way up to $100 per pound and even time on a dialysis machine. The basis of this myth began when charities began using the tabs as fundraising tools. Sponsors would give X amount of money for X amount of tabs collected. Over time the myth began to give the pull tabs a dollar value instead of the donation pledge.
That wraps up my 5 Scrap Metal myths and misconceptions. I hope you found my list informative. If you have any questions or future topics please contact me. Check back next week for another Scrap Metal Guide.