Scrap metal recycling companies are basically made up of three dynamic departments, which are collecting, processing and reselling. The demand for iron and steel is driven by the auto, steel and construction industries. On average each year, recycling companies are responsible for processing over 70 million tons of ferrous metals (iron and metal) and well over 9 million tons of nonferrous metals (copper, aluminum, etc.).
Can you Sell Scrap Metal for Cash in Utah?Scrap metal is separated into two separate categories; leftover metal from industrial manufacturing operations called industrial scrap and metal that is collected from used metal products (scrap metal car pick up). After collecting these types of metals from junkyards, recycling centers, and industrial sites, metal processors shred the scrap into fist-sized shears. Ferrous metals are then separated from non-ferrous metals by the use of magnets. The quality of the new steel made from the scrap depends on the quality of the scrap, which was recycled. Because of this, there is an extensive grading system made up of over 80 grades of unprocessed ferrous scrap. Scrap metal from junk cars varies within this grading system.
Because of metals high demand on an international level, scrap metal has been a huge export commodity for the United States, especially to China. This has been economically beneficial to the US by helping reduce the deficit caused by importing so many products from China. Due to the fact that scrap metal is a global commodity, the global market affects its price. When the recession hit in 2008, the price of scrap metal dropped from $700 / metric ton to $250 / metric ton. This price reduction was a direct result of a slowed economy, resulting in lower demand for the product. On the flip side, scrap metal has seen artificial inflation due to companies holding onto their scrap metal resources, therefore shortening supply and creating a higher demand. A few years ago the industry experienced a 70% increase in price due to this artificial creation of higher demand. Nevertheless, it is a fact that in recent years China (along with South Korea, India, and Japan) has increased its demand for scrap, further raising the price. For example, in 2008 world steel consumption increased by 6.8% while global metal consumption by China alone rose from 10% up to 25%. There seem to be no end in sight for the demand of scrap metal.
Recycling of scrap metal is not only important for our economic growth, but it is also important for our environment. By recycling ferrous and non-ferrous metals, we limit the amount of ore that must be mined from the earth. In doing this we are saving natural resources for future use and stimulating economic growth. More recycling means less mining, which equates to reduced carbon emissions for a cleaner atmosphere. Also, some scrap metals like lead are toxic to the environment. Proper handling, recycling, or disposal can significantly improve not only our environment but developing countries as well. And a cleaner and safer world is a world we can all live in.