Scrap Metal Recycling Business
Collect, process, and sell scrap metal from various sources to processors
Overview
Scrap metal recycling businesses earn $0.05-$2.50 per pound depending on metal type (aluminum, copper, steel, brass).
Processing 30,000-150,000 pounds monthly generates $100,000-$500,000 annually with 25-45% margins after acquisition, processing, transportation, and facility costs.
In 2025, demand for recycled metals in manufacturing keeps scrap metal valuable, creating opportunity for collection and processing businesses.
Services include collecting scrap metal from contractors, businesses, and individuals, sorting metals by type and grade, processing (cutting, baling, crushing) for transport, weighing accurately with certified scales, transporting to mills and processors, and providing competitive pricing.
Successful businesses invest in scales, processing equipment (shears, balers, crushers), understand metal grades and pricing, build relationships with reliable suppliers (contractors, demolition companies, manufacturers), and efficiently process high volumes.
Pricing metals accurately and offering competitive rates attracts suppliers.
Commercial and industrial clients provide steady volume.
Focus areas might include automotive scrap, construction metals, or industrial by-products.
Required Skills
- Metal Identification
- Commodity Pricing
- Heavy Equipment Operation
- Business Relations
- Logistics
- Material Processing
Pros and Cons
Pros
- Consistent demand for recycled metals
- Can scale to high-volume profitable operation
- Environmental benefits of metal recycling
- Multiple revenue streams (ferrous, non-ferrous, specialty)
- Industrial clients provide reliable supply
Cons
- Very high startup capital for facility and equipment
- Commodity price fluctuations affect profitability significantly
- Heavy labor and equipment maintenance intensive
- Environmental regulations and permitting complex
- Competition from established recyclers
How to Get Started
- Research local regulations and secure facility permits
- Invest in certified scales and processing equipment
- Build relationships with metal suppliers (contractors, demolition)
- Understand metal grades and commodity pricing
- Set competitive acquisition pricing to attract suppliers
- Establish accounts with mills and metal processors
- Market to contractors, manufacturers, and industrial businesses
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