Non-ferrous markets as a whole and copper grade values in particular are dropping precipitously across the scrap metal world. Most of the volatility is directly related to trade tariffs and restriction of material into and out of the US recently imposed by the Chinese government in response to Trump administration moves. 

Copper has dropped on the COMEX (Commercial Metals Exchange) from $3.30 as of June 6th to $2.66 on July 18th. This creates drops in scale prices of up to $.50 on premium grades. It also reduces greatly the value of insulated copper wire grades, brass and aluminum copper radiators. 

The best guidance available from brokers across the world is that there will be continued instability without any expected improvements until early fall. The hope that many people hold is that these trade tariffs are largely maneuvering by the US with the goal of bringing the countries throughout the world to the table to renegotiate trade agreements. 

Be Sure To Separate Your Materials Before Your Trip To The Scrap Yard

Many scrap yards will not let people do separating at the door because the yard will make less money. You’ll also tie up their labor and could hold up other customers. Having materials separated before going to a scrap yard is important. If you don’t sort your scrap then the scrap yard owner will classify all of your scrap as the least valuable in the load. Think about it – if you have a ton of #1 Bare Bright Wire with a few strips of #2 Copper Tubing/Wire mixed in then you can easily be paid the price for #2 Copper Tubing for the whole load. That price difference can really add up – just think about it!

Being Mislead By Different Scrap Metal Grades

When you’re new to scrapping, you may think you have a load of the good stuff until you get to the yard and find out what you thought was #1 Bare Bright Wire is only Insulated Copper Cable (many variations) because you didn’t strip it. That’s a big difference in price per pound! Even if you’re a veteran around the scrap yard who usually recycles copper wire, say you land a nice load of Insulated Cable only to find out you really got your hands on Data Wire. You’re going to feel the difference when you get paid! Make sure you find out what material you have and how your yard likes it prepared before you get to the yard.

Another material that is important to have an idea about is stainless steel. A common metal that you will come across it’s important to know there are different kinds and grades of stainless steel. Stainless steel has nickel inside, the different grades are determined by the amount of nickel content inside. Ask your scrap yard about how they identify their stainless steel grades.

There are some very successful stories coming out of the recycling industry lately. The one that is in the news today is the nearly perfect rate of recycling for lead acid batteries. These are the batteries that are in your car, lawn mower, motorcycle etc. They can be found in sizes ranging from a few pounds up to steel case batteries in forklifts weighing thousands of pounds.

Battery Council International (BCI), Chicago, and Essential Energy Everyday have released a study showing lead batteries have a recycling rate of 99.3 percent, making them the No. 1 recycled consumer product in the U.S.

There are many factors that contribute to this success. Credit must go to environmental groups both private and public who have made it clear to everyone that lead acid batteries can be dangerous to ourselves and the environment. Secondly, the strong value of the recoverable lead in these batteries make it an attractive scrap products for small scrap sellers and large dealers alike. 

Excel Recycling purchases lead acid batteries at all of our locations.

COPPER

• Copper is the best non-precious metal conductor of electricity.

• The United States annually recycles enough copper to provide the copper content for nearly 25,000 Statues of Liberty.

• Copper and copper alloy scrap provides one-third of the U.S. copper supply. •

ALUMINUM

• The recycling rate for aluminum cans remained at 67 percent in 2013 as more than 60 billion cans were recycled in the U.S.

• In 2013, the energy saved from recycling aluminum beverage cans in the U.S. could fuel more than 1 million cars on the road for a full year.

• In recent years, recycled content has provided 50-60 percent of apparent aluminum consumption.

• Lead-acid batteries, a primary use for lead, have a 98 percent recycling rate.

• A used aluminum can is recycled and back on the grocery shelf in as little as 60 days.

• An estimated 85 to 95 percent of all automotive aluminum is recovered and recycled.

NONFERROUS SCRAP In 2015, the U.S. scrap industry processed (exports plus domestic recycled): • 5 million metric tons of aluminum; • 1.8 million metric tons of copper; • 1.2 million metric tons of lead; • 175,000 metric tons of zinc; and • 622,000 metric tons of nickel/stainless steel. The United States exported nearly $11 billion worth of nonferrous scrap to 85 countries in 2014, including China, Canada, Mexico, South Korea, Japan, Taiwan, Belgium, India, and Germany.

INDUSTRY STATS Energy saved using aluminum scrap vs. virgin materials is up to 92 percent.

There are many factors that influence the prices of both ferrous and non-ferrous scrap metals. You may have seen the stock market making charges up and down in the last few weeks. These fluctuations don’t directly affect the value of scrap metal. The most significant influences that bear on the value of scrap are the volume of scrap in the market, where it is on the global stage, what construction or manufacturers are demanding and weather or time of year.

These influences are interwoven and affect each other in many ways. The weather at any given time of year can create a slow down in transportation. If demand is high this could create a rise in prices during what would seem like normally slow seasons. If heightened demand is coming out of the US domestic market then scrap consolidated in areas of easy rail access may have slightly higher values making for different prices regionally in the US.

The obvious question “how do you predict price fluctuations?” is virtually unanswerable. That doesn’t mean you can’t get a feel for the rhythm of the market and pull some insight from what happens on the global stage. Excel Recycling’s staff is constantly monitoring these influences to bring you an accurate value for your material relative to all these influences.

Copper scrap metal comes into the yard in many different forms. Here is a quick explanation of the descriptions we use and how to get the best return for your scrap copper.

The best  grade is (BB) bare bright copper. This is usually brought to our yards in the form of stripped wire and sometimes cut of and scrap from plumbing projects.The name really says it all. The material should essentially look like a brand new penny of like the big pennys you can get from the buyer Wayne. (If you see Wayne ask for one).

#1 copper is any copper pipe, stripped wire, sheet, chips or turnings that maybe discolored but don’t show any paint, solder, fittings or exceptionally heavy patina.

#2 copper is copper scrap similar to #1 copper but has paint, soldered fittings and heavy patina in the same forms.

Composition or comp is copper pipe that may still have brass fitting or small brass plumbing fixtures attached.

Copper scrap also comes in many other forms an you can always get more information buy calling the office, your buyer or requesting a response through any of our social media FB, Twitter and Instagram for more information.