Hello, New to Scrapping - Buying

Hello everyone, I've recently found myself in a position where I need to buy several truckloads of scrap. I'm brand new to all the terminology, but as I understand it, it should be cast iron, HMS, or P&S. I've found several yards in the area that can begin to fill the orders, but none of them will tell me the price. They all ask me to tell them what I'll pay. Does anyone know the current going price per ton to BUY these groups of metals from a scrapyard? Some of the specifications are that they have to be free of rust, oil, grease... I'm shipping this across the great state of Texas to Laredo and here I am, not knowing much about the subject, but trying to act like I do so that we don't pay too much. Can anyone give me an idea? (I'm familiar with the price the scrapyard will pay $0.035/pound, just not what they'll sell it to me for, per ton.)

Any insight would help!

Welcome to the forum.

MattIntheHat I think those are the most common specs for scrap metal. HMS is heavy metal steel, and P&S is plate and structural. I'm very new to this, but from what I've learned, that is the bread and butter for scrap re-sale?

Mechanic688 I'm hoping that the margins will be there, and I will only make a purchase if I can make money. I've got a good buyer in Laredo, Mexico that has given me a price that he will pay, I just am not familiar with what I should offer a scrap yard, being that I'm so new and don't know the market yet. Does anyone know the profit margin that scrap yards generally make?

I don't think it matters what percentage the scrap yard makes, for your purposes. You need to figure out your overhead, what will it cost you to transport the product across the border? Are you paying an employee? Subtract that number off what your buyer will pay. ex. buyer pays $200 GT - $50 overhead per ton = $150. You buy the scrap for $100 GT. That leaves you $50 per ton profit. Not sure if that is written clear, but it's monday.