How to Start a Scrap Metal Business

In any case, starting a scrap metal business has a few fundamental rules that you may want to follow. This business is a very hands-on business, where owners and scrap workers work directly with the “product” – sometimes even handling junk and rusty pieces of metal.

Your first priority should be the accumulation of scrap: these are old, unwanted metal pieces that usually come from building supplies, discarded vehicle parts, and other surplus metal materials. Scrap metal is actually a very important commodity – and is usually almost always in demand for both production and recycling. Scrap metal or recycled metal is less costly than pure metal, and the market for scrap metal is expansive.

Scraps can be found almost everywhere – some are given for free, others have to be salvaged from wreckage or demolition sites, and others have to be bought outright. In order to remain competitive, owners of scrap metal businesses try to keep their rates low, and try to sell their scraps high.

As an owner of a scrap metal business, your second priority should be your holding area or the lot with which to hold all your scraps. Some people call it a scrap yard. Depending on the size and location of your holding area, your business may or may not be open to “browsers” or customers who wish to scan available scrap metal. Some scrap metal businesses allow browsers to walk into the holding area and extract whatever they need, provided that the customers supply their own tools for extraction, and that they waive any liability from personal injury during the extraction process.

Larger scrap metal businesses usually segregate metals by piles according to quality and its recyclable parts. Buyers of scrap metal then “bid” for a specific pile: something like an auction of sorts, where the highest bidder gets the pile he so desires. Sale of scrap metal is always measured by weight, and never per piece or item.

Some scrap metal businesses even have dual purposes. On one hand, they sell scraps to the highest bidders or browsers and the less desired pieces are inevitably sent to smelting companies. In both cases, there is always a fast exchange of money, making this a very lucrative business enterprise.

However, one great major concern, and one that should be the third on your priority list, is safety and security. Obviously, scrap metal holding area poses a lot of risks when it comes to physical injury. Haphazardly placed metal pieces may eventually topple over especially when “browsers” are covering the lot. There is also concerns regarding health and environmental issues – radioactive materials have been found in scrap metal yards before. As the owner of a scrap metal business, you and your people will most likely handle a lot of junk that came from unknown sources. It is best if you have protective gear or at least a contingency measure should something quite undesirable turn up in your holding area.

1. steve mcdonald on 9/7/2008

IM LOOKING TO START A SCRAP METAL BUSINESS . I WOULD LIKE INFORMATION ON WHAT IS NEEDED TO START . THANX

2. FABIAN TAIT on 9/24/2008

I AM LOOKING TO START A SCRAP METAL BUSINESS . I WOULD LIKE INFORMATION ON WHAT IS NEEDED TO START . THANX

3. Ronald Wainwright Jr. on 9/29/2008

I am thinking of starting a scrap metal and or a recycling business.Can I start a business with a relatively small investment and make it grow. What do I need?

4. SITHIK HAJAALAUDEEN on 10/22/2008

PLEASE EXPLAIN ABOUT THIS BUSINESS

5. SITHIK HAJAALAUDEEN on 10/22/2008

PLEASE EXPLAIN ABOUT THE BUSINESS .PLEASE SEND DETAILS TO MY E-MAIL ADDRESS.siddiqhaja@yahoo.com

6. Adam Adkins on 12/6/2008

Hey I've thought about starting a scrap yard, I mostly collect cans and have people save them for me, but I'll collect everything. I was wondering, do you need a license to start a scrapyard? And if I do, where would I go to get one?

7. Jasjeet Singh on 2/20/2009 10:42:23 AM

please tell me more relevant details about establishing a scrap business and please tell me the minimum amount of capital to be invested in this business to make it start.

8. Nivesh Agarwal on 2/25/2009 7:44:39 AM

I WANT TO KNOW ABOUT ALL ASPECTS POSSIBLE IN STARTING, HOW SHOULD I START THE SCRAP BUSINESS.. AND WHAT ALL THINGS I SHOULD KEEP IN MIND... I M FAIR INTERESTED

9. VASI SARWAR KHAN on 3/6/2009 3:35:04 AM

sir, I m thinking to start to metal scrap business. But having problem in how to and from where to start. please give me your suggestion.

10. Edy on 3/6/2009 12:07:57 PM

hi!! i am interested in starting a scrap yard business but i am having problems in formulating a proper business plan, and to know all the aspects of the business. Like you should contact first like ministry of forestry and stuff like that. So please help me!!!

11. SUMIT RUSTAGI on 3/7/2009 5:58:36 AM

WANT TO KNOW ABOUT ALL ASPECTS POSSIBLE IN STARTING, HOW SHOULD I START THE SCRAP BUSINESS.. AND WHAT ALL THINGS I SHOULD KEEP IN MIND... I AM FAIR INTERESTED.

12. Keitsile Mabe on 3/11/2009 2:49:00 AM

Hi, I would really like to start scrap metal business as to how to start and how much do i need, whom to register with and places where i will be able to sell the melted steel. Please if possible supply me with the business plan as this will be the first time starting a business. Also would like to know where to find information on how to differentiate the types of steel. What to do like washing the steel before melting what to be careful of. Please help!!

13. stevin muturi on 3/20/2009 12:25:34 AM

i need to know how to start a small scrap metal business. I am along the highway. the area is about 15*20 ft.

14. josh p. on 3/21/2009 9:44:25 AM

the problem is that there are no information about this topic on the Internet but i recently came across this site www.metal-scrap.net. I think its not the best, but at least it has really valuable info, hope that helps you guys

15. jitesh ptel on 4/3/2009 5:34:24 AM

dear sir? i really wanna know about scrap business, please send me information about this business.. please.. thank u

16. snipes metal industries on 4/11/2009 8:28:56 AM

I want to start my own scrap metal business, how do I get started?

17. krishnan chandran on 4/12/2009 4:37:49 AM

dear sir? i want to start a scrap metal business i don't know how to start can u help me how to start the business. please send me information about the business. thank you......

18. Chandra Patl.comel on 4/22/2009 2:26:19 PM

Could you please email me the related information about metal scrap business? I will highly appreciate it. My email is cbh2207@gmail.com

19. jaganathan on 4/27/2009 5:56:52 AM

I want to start my own scrap metal business, how do I get started? cell no : +91-9884469900, please guide me ... thanks

20. md rizwan uddin on 4/29/2009 1:26:36 AM

I want to start my own scrap metal business, how do I get started? and what's the minimum capital required. please send details to md_rizwan1001@yahoo.co.in thank u

21. Margi Williams on 5/2/2009 7:39:18 PM

My husband's job will end in June and he has decided to start a metal recycling business. Any resources you can provide for his success would be very much appreciated. My email address is margiwilliams@yahoo.com.

22. shoaib shah on 5/3/2009 2:27:45 PM

i wanted to join someone who does the scrap business. if you know someone then please let me know its very urgent and please guide me that how to start this scrap business and how much money will it need and how much time will it take to start this business. please contact me on 9920977345. please do call me its very important. please sir, thanks your obedient shoaib.

23. pankaj on 5/29/2009 9:05:41 AM

I want to start my own scrap business. i don't know how to start. please help me. thanks

24. reinaldo altuve on 5/30/2009 9:22:24 PM

I just started a few days ago my scrap metal recycling business. I am collecting and stripping cooper from the electronic and electric, I need some information about this matter to keep going in my recycling business.

25. stacey on 7/1/2009 1:32:53 AM

Looking to start a small salvage yard out on the small farm of mine. I got a lot of sources of scrap I can get just looking for more info on starting a scrap yard

26. Tosin on 7/10/2009 6:13:48 AM

i want to start scarp metal business but haven't got any idea about it. kindly contact me about the necessary requirement of starting and owning a scrap yard. my email address is toesyn@yahoo.com. Looking forward to receiving messages from you about my new business.

27. jenny on 8/11/2009 4:40:02 PM

like others i too need to know how much investment is needed for this business and how to start?.....please reply via email. thanks

28. Queeny on 8/16/2009 6:23:01 PM

I would like to know all aspects of starting a scrap metal business. I just wonder if it's possible that I buy scrap metals from metal recycling center then trade it. Do I need any license in this case? Could you send me more details? My email address is queenyfong@hotmail.com. Thank you!

29. Antoinette on 9/1/2009 7:46:34 AM

Goodday,i would like to know in details what is needed in terms of Licenses, capital and on establishing a Steel Recycling company. could you please give your advice on how to start. how to write a Business plan and funding.

30. Carlos on 9/3/2009 1:34:18 PM

I have 3 acres of vacant land and I would like to start a scrap metal business and was wondering what type of licenses or permits were needed and how do I get started.

31. Syless on 9/22/2009 9:19:55 PM

Hi there, How to register to do the Scrap Metal Business and where and how can i find a yard and what are the terms and conditions we are looking at. How long does it take to set up. My cousin is in Business 3 years in Mauritius, well he is prepared to establish a Company in here. What do you advise I will be in partnership in the Company. Please reply. Thanks

32. john on 10/7/2009 9:44:44 AM

why don't you start a job for scarp yard company and when you learn how to do it then open your place up

33. maaz on 10/11/2009 12:08:18 AM

i want to which type of scrap? i want to know all types of scrap and i want to start scrap business

34. Ahmed Ismail on 10/15/2009 3:37:33 AM

I'M LOOKING TO START A SCRAP METAL BUSINESS. I WOULD LIKE INFORMATION ON WHAT IS NEEDED TO START...please tell me more relevant details about establishing a scrap business and please tell me the minimum amount of capital to be invested in this business to make it start. do you need a license to start a scrapyard? And if I do, where would I go to get one? how much investment is needed for this business and how to start?.....please reply via email or contact me on my cell 714-553-8001

35. Ahmed Ismail on 10/15/2009 3:40:59 AM

I am also Interested in doing it internationally. Import and export. And if anyone interested please let me know. Again my cell number is 714-553-8001 thank you.

36. Jay Partner Wanted on 10/17/2009 6:17:28 PM

Hi there anyone interested in doing a joint venture with a scrap metal business in New Zealnd. please email me i have 16 years experience in the industry and export. but i am lacking funds to do it myself so anyone interested please get in touch. cgroup2009@hotmail.com

37. ABUBACKER on 11/10/2009 1:41:26 AM

I would like to start a scrap metal business in INDIA in TAMIL NADU. Please give me advise regarding of how to set up and choosing place in TAMIL NADU. Thank You.

38. Bruno on 11/11/2009 7:09:09 AM

DEAR SIRS, WE ARE AN IMPORTERS OF METAL SCRAP IN INDIA BASED AT EAST COAST CHENNAI REGULARLY IMPORTING H M S IN CONTAINERS. WE ARE INTERESTED TO COORDINATE WITH ANY INTERESTED PERSON WHO IS INTERESTED TO START or SELL THEIR MATERIALS FROM ANY DESTINATION. HIBISCUSSHIPPERS@GMAIL.COM CALL-BRUNO- +91 -9444 780 388

39. crazzzeeej on 11/11/2009 12:12:24 PM

I was wondering why all these rag heads and Habibs want to be in the scrap biz? We gave you all the corner stores and convenience gas stations. Then came the hotels. Now you want the scrap biz!???

40. eli khoro on 11/20/2009 7:44:50 AM

small town is king william town, eastern cape, south africa, with a small budget R5000.00 tell me how to start and make scrap business a success permanently

Restaurant Business

Small Business Ideas

Mobile Business Ideas

Starting a Scrap Metal Business

40 Responses to "How to Start a Scrap Metal Business".

Popular Articles

New in

Recent Articles