How to Start a Metal Recycling Business

Starting a metal recycling business may be the option you are looking for to improve and boost your economy. You may think that it is a bit complicated because of the high value of the elements in some cases, but you need to be aware that in this type of business not only gold is traded or negotiated, but also all the materials that are part of the recycling of “scrap”, for example copper and other metals that can be extracted from various products or common items.

How to start my own metal recycling business?

At this point you are going to learn about 2 different types of processes that you can carry out to recycle metals:

The first is the indirect collection of the material. In the case of individuals or small microenterprises, we are talking about collecting small quantities of metals to then proceed to sell them to larger and more experienced recyclers, who are responsible for sorting, shredding and melting the metals to carry out their purification by applying techniques such as electrolysis, powerful magnetic systems or other types of technologies that in some cases are not very accessible to all metal recyclers.

This is one of the alternatives, but of course it will not be the one that can make you the most money, since selling the metals in their scrap state will not leave you much profit. If what you really want is to start your own metal recycling business, you must invest a little more and get the necessary elements such as machines and other shelves you need. The steps to achieve this are:

Step 1: get a location and the materials.

This point is the most basic, but also the most important. If you decide to consolidate as a materials recycling company, you must look for a suitable place with the necessary machines to start “scrap” or direct recycling. This will take you to the next level, being the one who buys the metals from the small recyclers.

Step 2: Start recycling

This point is key in this whole process. After you have your own physical business, the necessary machinery and staff, you must start recycling. You can do this by scavenging yourself, collecting “scrap” from businesses, metal owners and construction sites. Also, if you want to make everything flow better and faster, you must get safe and responsible sources. You can choose to promote your business, either with flyers, on the radio or more economical media such as the local newspaper. You can also build your own website and advertise on online websites, making sure to make your priorities clear: buying and selling the metals.

Step 3: Identify potential buyers

This step is just as important as setting up your business and buying material. A metal recycling business is not only about selling, it is also important to identify who your potential customers are, i.e. which or how many companies are available and willing to do business with you.

Remember that, in order to be able to buy the “scrap” you must have sufficient funds, obtained from the sale of the metals already purified and passed through a specific process.

Benefits of metal recycling

Apart from the detour of material from landfills (a great positive environmental impact), one of the greatest benefits is the reduction in energy consumption and the use of other polluting materials, thanks to the decrease in the creation of new virgin metals. For example, if aluminum is recycled, it requires 95% less energy, copper 90% less and steel 56% less. In addition to this energy benefit, if we talk about recycling one ton of steel, we avoid the use of 2,500 pounds of iron ore, 1,400 pounds of coal and 120 pounds of limestone.

What materials are part of the metal recycling business?

This is one of the most common questions asked by prospective recycled metals dealers. First of all, you must take into account the demand where you live. It is not the same to trade gold where it is simply not available, as it is to do it where the geographical and social location demands the purchase and sale of gold.

In the same way, you must be very aware of the prices, that is to say, how they are paying that type of metals in the market. This, to ensure a successful business that will not embezzle or bankrupt you in a short time, because of a bad strategy.

Now, these are the main metals:

• Gold
• Silver
• Steel
• Copper
• Aluminum
• Lead
• Nickel
• Zinc
• Among others.

You can start to see if starting your own metal recycling business is what you are looking for to invest your money. Analyze the environment around you, the needs of the territory and the people, and how this can help you and improve the local economy.