With the advent of technology, old establishments like the scrapyard are becoming rarer. However, if you find yourself near a scrapyard and do not know how important it is to society, this article is for you. When you see a scrapyard, the most common first thought in your mind is a dump for waste metal. Although that is not entirely false, a scrapyard is much more than that. A scrapyard contains waste metal; however, it is stored there for recycling purposes. A lot of metal from cars and appliances gets thrown out each year. Nevertheless, with a scrapyard, you can be sure it will get reused at some point.
How does a scrapyard function?
Scrapyards are places where the scrap metal is submitted and sold to refineries for reusing purposes. In simpler terms, scrapyards are wholesale metal collectors. For instance, say a regular customer buys a new car; the old car will go to waste. However, it might still have several equipment or machinery that can get used or recycled, mainly the metal. Since these consumers cannot directly go to refineries and sell their cars for metal, scrapyards are the next best thing. It collects a large sum of such metal and finally sells it to refineries to ensure that the scrap metal gets put to use later.
How is it priced?
Every scrapyard has a distinct way of paying its consumers. However, there is a standard rule throughout the industry. Metal gets priced on mainly two criteria, namely the weight of it and its composition. While ferrous metal, meaning metals that contain iron, are usually more common, they have a lower selling price. However, for non-ferrous metals like zinc, aluminium, or copper, the rate card is a lot higher. In other words, like the commonality of the metal increases, the price decreases.
This is typically tested by placing the metal under a magnet. Since iron is magnetic in nature, it will stick to the metal while the other does not. When it comes to weight, it is a fairly simple calculation. The heavier the metal is, the more prices you will get for it. That said, scrapyards have proven to be an easy and efficient way to recycle and reuse Scrap Metal Near Me.
Who is the buyer?
While the scrapyard is the customer for people selling metals in low quantities, for scrapyards, it is refineries. Refineries are always looking to buy waste metals and convert them into their natural state so that it can get used in manufacturing new products. However, scrapyards also have to find new suppliers every now and then. The suppliers provide the scrap with more metal, and that is how the cycle goes.