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How to Sell Metal Scrap Material in Best Prices

Choosing the right vendor to sell your metal scrap is important to get its right value. But there are some tricks that you need to keep up your sleeve to get the best value.

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How to Sell Metal Scrap Material in Best Prices

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  1. sales@altparts.com HowtoSellMetalScrapMaterialinBest Prices Your system generates scrap material every day after the manufacturing or consumption process. And for years, you might’ve been following this procedure to scrap metal: calling a scrap company, deciding the price, sending the filled containers, and then getting paid for your metal. For you, this mightbethebestwaytohandlethescrapmetal. But, only some manufacturers know selling scrap metal the rightwaycouldbeanothersourceofprofitforthem. Everyone selects a particular scrap company for various reasons including lower prices, better services, or just transparency. But most of the scrap companies would buy very low and sell high. Hence, as a seller, it is important to understand the value of your scrap material and how to get the right value forit. www.altparts.com

  2. sales@altparts.com • So,we’vegatheredthestepstohelpyoumakethemostoutof your scrapmetal. • Fix the SettledPrice • In the fabrication industry, selling scrap metal isn’t aone-time event. Therefore, it is important to make sure that you don’t end up working with a company that tempts you with an above-market price, and after that gradually lowers your per-tonratetoabelow-marketprice. • You need to make sure that you tie the pricing to a defined commodity-market index. This way, you can protect yourself whenthemarketfallsandbenefitwhentherethemarketrises. Thedecideduponindexpricesare generallynotsimilartothe negotiatedpriceforthescrap.So,whenyounegotiate,youare basically negotiating the differential price. This means there will be a difference between the market index price and the amount that the scrap company would give you. And when yourpricesaretiedwiththemarket-index,thescrapcompany won’t be able to freewill their way around theprices. So, make sure that when the index goes up to $20, the scrap price shouldalsogoupbythesameamount. www.altparts.com

  3. sales@altparts.com • Be Aware of theDowngrades • It is a common industry practice to pay for the least valuable scrap material in a load. If the load contains 90% stainlessand 10%someother material, thelessexpensivematerialwouldbe graded. Looking from an ideal point of view, the payment should be based on the percentage of the material in a load. For dirty loads, downgrading the scrap amount is certainly fair, especially if a dirty load increases the amount of segregation work. Hence, if a scrap company downgrade a load,askfor properdocumentation.Makesurethatthereisan agreement to send documentation and pictures for any downgradedload. If you communicate with the scrap companyabouthowithandlesdirtyloads,youwillunderstand how itoperates. • Separate the ScrapPieces • This technique is all about maintaining transparency. This process includes everything that happens to the scrap before it’s sent to the mill. It includes shipping, processing costs, and other value-adding process costs. For instance, you get a pallet of metal pieces after a laser cutting process from a machine containing Amada partsor Bystronic parts. Before you put them for buying, they must undergo a number of value-adding steps. You need to segregate them by type and cutdowntoamill-acceptablesize. www.altparts.com

  4. sales@altparts.com • Justlikethat,stepsmayvarydependingonyourexactmaterial mix and requirements. It depends on your own processes and thepriceincreasethatascrapcompanyiswillingtogiveyou. • It might sound like a complex process, but remember thatjust like the production, scrap is also a revenue center, so it’s worthorganizingitwithaprocess. • Keep Track of the Load and TrackingReports • Usually, the truck arrives at your workplace, retrieves your scrap,andleaveapickupreceiptandscaleticketatyourdock. After a certain period of time, the concerned person would deliver them back to the front office. But it is not necessary that all those pickup receipts make it into themain office. You needtoverifythenumberofloadsthatleftthefacilityandfor how many of them you received the payment. Keep one responsible person to take care of this process. Especially, when you scrap aluminum, stainless, or other high-value materials. Because each load can account for thousands of dollars. • Summing itup… • Handling scrap material isn’t rocket science. But it is important to understand the process, market, and of course, havingabasicknowledgeoftheindustrypriceswon’tharm. www.altparts.com

  5. sales@altparts.com If done right, just like you produce products using Bystronic partsor Amada parts, you can turn scrap into a valuable profit-makingproduct. This Article Post isOriginally Posted here: https://penzu.com/public/182df822 www.altparts.com

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