Starting a scrap metal business can be very profitable after the first couple of years. Depending on which level of business you want to go in to, the initial investment can be very small or very large. First, it’s essential to know your metals, and which types of metals you’ll be collecting.
Collecting Scrap Metal
Collecting metal is by far the simplest way to enter the business. Many people and companies have old equipment and machinery lying around that they would love for you to haul off. Before you begin, connect with the nearest metal recyclers to understand how they do business. For this aspect of a scrap metal business, all you’ll need is a pick-up truck, sturdy clothes, boots and gloves, a magnet, metal snips, saw, wire-strippers, a scale, and some tie-downs. You’ll need to strip the metals of any other materials such as plastic, paint, or rubber coatings and sort the metals into ferrous (iron-based) and non-ferrous metals. While all alloys have value, ferrous metals are the most profitable.
Melting, Refining, and Finishing
If you decide you want to enter this sector, you’ll need land and a structure to house the materials and machinery. Each type of metal will need a different furnace because metals have different melting points, and you’ll only make more work for yourself if you try to mix them. Once they’re in liquid form, you can run a current through them to extract any other metals from the alloy. At this stage, the metal is ready to be poured into ingots, rods, or sheets and you’ll need metal casting services to get the molds.
There is a high profit to earn for the vast amounts of scrap metals that people no longer want. The time and investment it takes to go from junk to a marketable product may be well worth your efforts.