More for Insulated Copper Than It's Weight in Copper?

I'll be completely transparent here. Compared to most of the guys on this forum, we are relatively new to the recycling business. We only deal in copper wire, as we are a chopper. Obviously one of the best sources for insulated wire are scrap yards themselves. We have had varying success in being able to purchase bales of insulated wire directly from scrap yards.

But something I have noticed recently has me very curious. We are more and more often encountering scrap yards who are selling their baled #1 and #2 insulated copper at prices that are ACTUALLY HIGHER THAN THE VALUE OF THE COPPER CONTAINED IN IT. I am completely perplexed. For example, I spoke to one gentleman who was selling copper wire with an average recovery of %70 for $2.56 per pound. Let's do the math on this. 10k lbs of copper wire with a recovery of %70 yields 7k lbs of copper. Assuming you could sell it for the COMEX price (which is $3.53) today, you would have $24,710 lbs. worth of copper, that you paid $25,600 to obtain. This is before you even take shipping and labor costs into account.

Am I missing something? Could we get some wisdom from the veteran scrappers on this forum?

Thanks miked. We actually do advertise to and buy from the public, but in certain territories we have attempted to buy directly from the scrap yards, with the caveat that we will not compete with them within their territory. Of course, you are probably correct in thinking that the prices we are being quoted by these particular dealers are not an accurate reflection of what they are getting.

Yes, freonjoe, we definitely do buy from the public. We just figured that since scrap yards have to sell their product to someone, why not us? Especially given that we can sell back the copper chops to them, which they in turn can sell to whomever they sell to. The way I figure it, they have an opportunity to make money on their wire twice. Seems like a win-win to me.

Well before copper took a crap i could get $2.20 for 70%#1 insulated...$2.56?.. aint no way in hell unless they got told they only had 70% but had 90%..who knows lol

Well most of the time they're not selling on the current comex or lme but on 2-3 month out futures. Haven't checked it out this week but the prices do vary. They'll buy on the current, but sell on the future

Everyone is working off a discount off Comex whether it is today's spot or future. Anyone telling you they are getting more than Comex is full of it.
Keep knocking on doors and FOLLOW UP. I called Cape Coral Friday morning at 10 am for a price on 20 boxes of IWC (12k lb) and your guy said he needed to TT the boss for a price ..............still waiting ?????????

Welcome to the Shark Tank,they sence you are new and will throw all the B.S.at you,there are some legit yards out there but you have to find them,i do not know your business plan but may be offer the service to them of granulating there wire for them,keep the machine moving good luck

Can I ask, what shape was the wire in? MANY times I have gone to the scrap yard to buy project wire that was still useable. Sometimes it is still on the role nice and neat! Perhaps they are selling it to you based not on some sort salvaged value but on some still useful price? That's the only way I can see the justification. Maybe they figure this is not melt grade, but re-saleable?

(Oh and if you want awesome rims for your car or truck, my junk yard has amazing deals! Seems the jilted girlfriends sell those rims real cheap....)

Jeff