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That's a good deal, but if was me I would buy the wire at .70# and drive it right to my buyer for .90# and take the money and run. Now if the wire was a solid core wire and could get #1 price for it then it would be worth stripping. Like olddude said the copper that comes from electric cords is always #2 copper at the yards I go to. It's to thin to be any higher. Here lately I've been getting 1.00# for #2 insulated copper.
Metal Recycling Entrepreneur
One thing that nobody discussed when talking wire recovery is the spread. The spread is essentially how much cost per pound it would take to get a copper commodity to pure copper bullion that is traded on the open market (Comex). For example, the spread is much less for #1 MCM wire (about $0.07) than for power/extension cords ($0.35). That being said, it cost $0.35 lb. to make the copper in extension cords into copper bullion.
So...when I am calculating how much wire is worth to my company I use this formula: Comex - spread x recovery % of wire = my companies get price on wire.
You also have to factor in freight cost to the smelter (usually $0.02-$0.03 lb.) when estimating price.
Hey Redcross, I know it seems like they are getting over on you, but all the guys who have answered are right. The margins have to be there or your source of wire at a good deal could go out of business. I've actually talked to one of the yards I buy from to let him know he was selling too cheap (too close of a margin). I raised my buying price a little so he would have a better chance of staying in business.
If you can make money on stripping the wire you're getting, go for it and try to build up to bigger lots you're buying before negotiating a lower price, maybe not even then. Object: make money and don't kill your supplier.
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I would like to hear a wire buyer chime in here, I also believe some com wire is a higher % then some wire they class as #2.
"anyone who thinks scrappin is easy money ain't doin it right!"
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Why do you think you should be paying $0.50/lb? Why do you think you should be able to set someone else's profit margin?Originally Posted by redcrossnj
They don't have to sell to you. Rather than selling you 15-30 pounds of something, the yard's employee's time could be more profitably spent elsewhere. Start buying in the 1,000-2,000 pound range and you may be get better pricing.
As it is, you are still making a profit.
Olddude
Approximate Wire recovery percentages
Cat5. 50pct
Thhn small. 78pct
Thhn big. 82-85 pct
Romex. 63 pct
Ext cord varies but 33pct is in the range
How long does it take you to strip a 1000lbs of 750 mcm cable? How long does it take to strip 1000lbs of computer cable? Now pretend you only make .15 cents on copper only. Which one would you prefer to strip? Granulators are big strippers.
Computer wire ends up having a lot of tinned wire mixed in. If the mixed wire copper mixes with the number 1 wire all of it is downgraded. The copper value is in the wire but the time, cost and risk makes it not worth it.
Last edited by Mick; 01-07-2014 at 07:28 AM. Reason: delete buy offer
I'll take all the cat5 I can get for $1/lb
Labor is the killer on everything we do
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If you can turn a profit go for it. Just make sure your buying it with the owners blessing, buying stolen property is a felony. just my .02.
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