For most first-time scrap recyclers, that first visit to a scrap yard can make for a mix of excitement and uncertainty. You know you have a truck full of materials that are worth money. But the process by which your scrap metal is weighed and priced often seems like a mystery. The difference between walking away with a big check, or feeling taken advantage of, often comes down to simple sorting techniques.
“Sorting” here doesn’t just mean cardboard versus metal, either. Metals are graded by purity, size, and chemical makeup. Getting comfortable with these differences before you get to the scale is the easiest way to be sure you’re getting the most money for your materials. Your scrapyard will appreciate it — and so will your wallet.
What Factors Influence Scrap Metal Pricing?
When figuring out what your scrap metal is worth at the scale, there are many factors in play that influence pricing, beyond the daily market value. Sure, supply and demand from around the world can affect what metals are worth, but the condition of your scrap determines where your price falls in that range.
The first category is purity. Obviously, the purer your metal is, the less work a recycling yard will have to do to melt it down and prepare it for sale. If your copper is wrapped in plastic wire insulation or glued to a fitting with solder, it will decrease your grade significantly.
Volume can also be a factor. Many yards will pay more for “bundle deals” if you bring a lot of material that’s well-sorted.
Finally, yards hate inconsistency. If you deliver a ton of aluminum containing only aluminum, we will consider that “clean” aluminum and pay a higher price. If your copper has pieces of plastic, brass, steel or other metals in it, the entire load gets penalized.
Once you understand what grades pay which prices, sorting your scrap becomes less of a guessing game and more of a science.
Copper Grades | Copper 1 vs Copper 2
Copper. The holy grail of scrap materials. Copper’s natural conductivity makes it vital in construction and manufacturing, so it holds a consistently high value.
But all copper is not created equal. With copper, there are three main categories. Let’s start with the best:
Bare Bright Copper
Bare bright must be #16 gauge or larger and completely free of any materials that aren’t copper. Bare bright copper should have no insulation, paint or solder on it. If it’s shiny, like a new penny, you’re in good shape.
If your copper wire is thinner than the width of your pencil lead, or if it has green spots where it’s oxidized, it will likely be classified as copper 1.
Copper 1
Copper 1 is any large copper pipe or heavy-duty bus bar that is free of solder, paint or fixtures. Light oxidation is generally ok on copper one, but it can’t have any attachments.
Copper 2
We place most household wiring and copper plumbing in this category. Copper 2 allows for solder on the ends of pipes, paint and some oxidation. As long as the copper is 94% copper by weight, it usually falls into this category.
Below this is insulated copper wire — “ICW.” This is copper wire with significant amounts of plastic coating still attached to it. ICW pricing is determined by the percentage of copper we can recover.
Aluminum Grades | Sheet Vs Cast Vs Extrusions
Believe it or not, aluminum is actually the most prevalent metal found in American homes. From soda cans, foil and cookware, to building materials like wheels and siding. Chances are you already have more scrap aluminum than you realize.
Sheet Aluminum
This is the most common form of aluminum we sort. Don’t let the fancy name confuse you: By sheet we mean lawn chair frames, soda cans, siding, even some pots and pans.
When we talk about aluminum being “mixed” or “containing iron,” we aren’t referring to the element iron. In the scrap world, “iron” means steel screws, bolts or even heavy plastic attachments. If your load contains these pieces, your yard will downgrade it to “Dirty Aluminum” — which can dramatically decrease your price.
The best way to avoid this is to take the time and remove all these contaminants before you leave home.
Cast Aluminum
Cast aluminum has a different texture than the kinds above. Instead of being rolled into thin sheets, like most aluminum, it is poured into molds and allowed to harden. This process makes the metal grainy and brittle.
Look for old engine parts, grill lids, or light fixtures as examples of cast aluminum.
Extruded Aluminum
The highest paying grade of aluminum is usually aluminum extrusions. As the name implies, these are pieces that have been pushed through a die to create a shape. Think window frames, door tracks and balcony railings.
More often than not, these are 6063 aluminum: a very high-grade material. Make sure to remove any rubber seals or glass so you get the full value!
The Magnet Test
This is one of the easiest ways to sort scrap metal. Keep a magnet in your pocket at all times while sorting. If it sticks, the metal is ferrous and not worth much money.
Aluminum, copper, brass, and other non-ferrous metals will not stick to your magnet. These materials are the most valuable.
Steel and Iron Grades | HMS vs Prepared Steel
Steel may not have the same value per pound as copper or aluminum, but there’s a lot more of it. That’s why sorting steel is one of the most important parts of understanding how to maximize your payouts.
Steel can come to the yard prepared or unprepared. Prepared means the material has already been cut to specific sizes so it can be easily fed into the smelter.
Heavy Melting Steel (HMS) is considered the industry high grade for scrap iron. HMS is then sorted into numbers, 1 or 2. HMS 1 will not have any galvanized steel or black steel. If it does, then it will likely be considered HMS 2 grade. The biggest difference between the grades is the size of the steel. Thicker steel = easier milling = more value.
Also considered high grades are Plate and Structural steel, or P&S. This includes large I-beams, heavy plates, and channel iron. Essentially the bigger and denser the load the better.
On the opposite end of the spectrum is light iron, also known as “Tin.” Tin includes all your appliances — washers, dryers, refrigerators, etc. Most of these items contain plastic, foam, and other non-metal materials, which dramatically decreases value.
Sorting Your Metals
Sorting metal may seem like a daunting task at first, but once you learn the basic steps it can become second nature. Before you leave your driveway, make sure you have performed the following steps.
- Do the Magnet Test
- Sort Ferrous from Non-Ferrous metals
- Sort the Non-Ferrous group into copper, aluminum and brass
- Separate the different grades (remove screws, solder, insulation)
- Wipe off any obvious dirt, oil or grease buildup
This may seem like overkill — but trust us, it’s worth the effort.
Knowledge Is Power
Far too often, people start out discouraged because they don’t know what they should be getting for their metal. You should never let someone take advantage of you, but most of the time it’s that fear preventing people from taking their loads elsewhere.
Remember, yards make money by selling material to mills. They pay you little to nothing for that service. The more you can do before you arrive, the happier they will be to work with you. If you have sorted your load correctly, they make more money too. An educated customer is the best customer.
At Action Metals, we pride ourselves on making sure you know why we’re pricing a piece a certain way. Understanding these Industry standards empowers you to make decisions about how you break down your material, and how you can receive the highest payout possible.
Let Us Give You the Best Price on Your Clean Scrap Metal
If you’ve taken the time to sort your scrap metal properly, you deserve to be rewarded for it. Stop by Action Metals and we’ll show you how honest scrapyards operate. Transparency is something we don’t just preach — we practice it every day.
FAQ
Q. Why did the yard downgrade my copper pipe even though it was clean?
Tiny specks of paint, oxidation, or solder can cause an entire bucket of copper pipe to be downgraded. Copper 1 must be completely free of these substances.
Q. What’s the difference between clean and dirty aluminum?
If your aluminum has any steel screws, heavy rubber attachments or plastic, it’s considered dirty. Clean aluminum should only have aluminum in it.
Q. Does the size of the metal matter?
Yes! Prepared steel has to be cut to specific sizes so it can be easily placed into the furnace. The more work we have to do with your scrap metal, the less we will pay you for it.
