How to Make Money Selling Scrap Metal
Australia's manufacturing industry has long supported a thriving scrap metal recycling sector worth $2.2 billion in 2020. Cars and household appliances like dishwashers and washing machines are among the valuable items for recycling companies. Metals like copper, steel, nickel, aluminium and lead are also in high demand.
More and more people are making serious cash from scrap metal recycling, either as a side hustle or a main business. You don't need much capital to engage in scrap metal recycling services, and you can get started with just a truck. The tips below will give you a footing in the industry:
Understand the Product
Various scrap metal types sell at different price points, and it is essential to know your product to avoid underselling. Metals can either be ferrous or non-ferrous, depending on your sources.
Ferrous metals include iron, iron alloys and stainless steel. Iron is prevalent in mechanical construction, and it is commonly salvaged in automobiles, trains, rail tracks, tractors, refrigerators and ovens.
Non-ferrous metals mainly consist of copper, nickel, aluminium and tin. A savvy scrap collector knows that the real money is in the less abundant, but valuable metals like copper compared to more available metals like aluminium. For example, mixed copper prices range between $5.00 to $7.00 per kilo, while aluminium cans sell for only $0.10 to $0.20 each.
Look for Sources
Many people start by scraping unused items around their property or from their family and friends' yards. However, if you want to make substantial profits, you will need a steady supply of scrap metals.
You can reach out to local tradespeople like HVAC contractors and plumbers who typically deal with scrap metal in their jobs. Check construction sites, automobile repair workshops and small businesses for free or cheaply-priced scrap. You can also use Internet sites for scrap metals near you.
Keep Up with Scrap Prices
Scrap metals are bought and sold much like stock, which means that prices will depend on demand. You should be aware of your locality's current prices to get the best deal from scrap metal recycling services.
Scrap metals have to be graded, and the higher the grade, the more money you can expect. Grade one metals are highly-valuable because they are not mixed with different alloys. Grade two metals consist of primary material and alloys, which should not be corroded. Other scrap materials include sheets and castings.
Look around for scrap metal recycling services that pay higher prices. These companies will evaluate your haul and pay cash immediately. Although you will make more in some days than others, recycling can be a legitimate side hustle.
To learn more, reach out to a local scrap metal merchant.