Starting a metal recycling business may be the option you are looking for to improve and boost your economy. You may think it’s a little complicated because they are very valuable items in some cases, but you need to be aware that in this type of business you are not only trading or negotiating with gold, but also with all the materials that are part of the “scrap” recycling, for example copper and other metals that can be extracted from various products or common elements.
How do I start my own metal recycling business?
At this point you will learn about 2 different types of processes you can carry out to recycle metals:
The first is the indirect collection of the material. In the case of individuals or small micro businesses, we talk about collecting small quantities of metals and then selling them to larger and more experienced metal recyclers, who are responsible for sorting, shredding and melting the metals to carry out their purification using techniques such as electrolysis, powerful magnetic systems or other technologies that in some cases are not very accessible to all metal recyclers.
This is one of the alternatives, of course it will not be the one that can leave you more money, because selling the metals in their scrap state will not leave you more profit. If what you really want is to start your own metal recycling business you should invest a little more and get the necessary items such as, machines and other shelves you need. The steps to achieve this are:
Step 1: Get a location and materials
This point is the most basic, but also the most important. If you decide to establish yourself as a material recycling company, you should look for a suitable place with the necessary machines to start “scrap” or direct recycling. This way you will go to the next level, being the one who buys the metals from the small recyclers.
Step 2: start recycling
This is a key point in this whole process. After having your own physical company, the necessary machinery and your work staff, you must start to recycle. You can do this by searching for 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 in cheaper media such as the local newspaper. You can also build your own web page and advertise on online websites, making sure you make your priorities clear: buying and selling metals.
You may like: How to start a tyre recycling business
Step 3: identify potential buyers
This step is as important as setting up your business and buying equipment. A metal recycling business is not only about selling, but it is also important to identify who your potential customers are, i.e. what or how many companies are available and willing to do business with you.
Remember that in order to buy “scrap” you must have sufficient funds, obtained from the sale of metals already purified and passed through a specific process.
Benefits of metal recycling
Apart from the diversion of material from landfills (a major positive environmental impact), one of the biggest 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 aluminium is recycled, this requires 95% less energy, if we talk about copper it is positioned with 90% less and steel with 56% less. In addition to this energy benefit, we are talking about that if we recycle a 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 future recycled metal dealers. First and foremost, you must take into account the demand of the place where you live. It is not the same to trade gold where it is simply not available, as it is where the geographical and social location demands the purchase and sale of gold.
Similarly, you must be very attentive to prices, that is, how they are paying for that type of metal 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 yes, these are the main metals:
You can start to see if starting your own metal recycling business is what you are looking for to invest your money in. Analyze the environment around you, the needs of the territory and the people, and how this can help you and improve the local economy.