Friday, 1 November 2019

Raising scrap value through mill-direct pricing

Raising scrap value through mill-direct pricing

If a metal mill stands in proximity to a scrap recycler, then they inherently develop a strong bond as they operate and grow together. Besides, they also learn the operation procedure of their counterpart to yield more efficiency. And, by doing this, they often build up a strong relationship that benefits both their businesses. This bond is also profitable for the dealer who sells scrap material in that particular area. Let's delve a bit deeper to check out how.

If you want to sell a stack of scrap in the open market, then the scrap recycler will give you the final quote, depending on the type of scrap, the service it will provide, and the overall transportation cost of your scrap. But, a recycler with an adjacent mill knows about the specific demand of that particular mill. So, they are well aware of the quality of scraps they are looking for, the proper assessment, and the efficient sorting process.

Selling your scraps to this kind of recycler has many benefits. It will have meagre transportation cost as the mill is located nearby leading to a boost in the final price of your scrap. Besides, a scrap recycling broker can also negotiate the final price of the scrap with the mill confidently, as they have vast experiences of operating businesses together.

By proper sorting and low-cost transportation, the scrap recycler actually enhances the final value of your scrap. Besides, it is beneficial for the mill itself as it gets the materials which it needs. The seller and the recycler both will earn more money compared to the earning that they can get by selling scarps in the open market.