how can I buy metal scrap ?

Hi

I live in Virginia and my brother in Pakistan started scrap business, he wants me to buy metal scrap from USA market and send it to him 500 MT's to 1000 MT's a month.
I was contacting scrap yard dealers from last few months but with no luck, everyone says they don't sell scrap. my question is how can I buy scrap from USA and export it to Pakistan
and what kind of licenses do I need.

Thanks in advance

RafShaf

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Originally Posted by rafshaf

Hi

I live in Virginia and my brother in Pakistan started scrap business, he wants me to buy metal scrap from USA market and send it to him 500 MT's to 1000 MT's a month.
I was contacting scrap yard dealers from last few months but with no luck, everyone says they don't sell scrap. my question is how can I buy scrap from USA and export it to Pakistan
and what kind of licenses do I need.

Thanks in advance

RafShaf

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I believe metals contracts at that scale are traded on a metals exchange. For example:

https://www.lme.com/Metals/Ferrous/S...rap#tabIndex=0

You would need to become a member and bid for contracts. At least that is my assumption.

Or you'll just have to go to scrap yards and offer more than whoever they are currently selling to. But even then, they might rather keep their existing relationship with their current reliable buyer, rather than take a chance selling to you for a few more bucks, who they might never see again.

I wouldn't presume to know .... but geopolitics may play a role.

Quote:

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Originally Posted by rafshaf

Hi

I live in Virginia and my brother in Pakistan started scrap business, he wants me to buy metal scrap from USA market and send it to him 500 MT's to 1000 MT's a month.
I was contacting scrap yard dealers from last few months but with no luck, everyone says they don't sell scrap. my question is how can I buy scrap from USA and export it to Pakistan
and what kind of licenses do I need.

Thanks in advance

RafShaf

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Hi RafShaf,

All the scrapyards you went to sell scrap. But they might already have contracts to fill for where it goes or might have state or local regulations on who they sell it to. But they do sell it. The yard I'm working out of at the moment just today loaded three full truckloads of light iron for Pakistan (about 65 tons) so for sure you can make it happen. At a minimum you'll need a business license from the state of Virginia where you are and you'll probably have to get something from the following linke for the exporting end https://www.bis.doc.gov/index.php/licensing

Depending on how much you plan to store preparing to export you'll probably also need a solid waste permit for the storage of scrap metals unless you're buying containers full directly to port. But if you have a business license and the means to receive loads and do any physical prep for export, and if your buy price is competitive, you'll find sellers soon enough.

JJ

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Originally Posted by JJinLV

Hi RafShaf,

All the scrapyards you went to sell scrap. But they might already have contracts to fill for where it goes or might have state or local regulations on who they sell it to. But they do sell it. The yard I'm working out of at the moment just today loaded three full truckloads of light iron for Pakistan (about 65 tons) so for sure you can make it happen. At a minimum you'll need a business license from the state of Virginia where you are and you'll probably have to get something from the following linke for the exporting end https://www.bis.doc.gov/index.php/licensing

Depending on how much you plan to store preparing to export you'll probably also need a solid waste permit for the storage of scrap metals unless you're buying containers full directly to port. But if you have a business license and the means to receive loads and do any physical prep for export, and if your buy price is competitive, you'll find sellers soon enough.

JJ

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yea.... that lol. Well said, good stuff!

I would just go to a metal store. Kinda like Goodwill, but for metals. They should have all you need.

I already tried that by going to different yards and meeting with yard managers but no one is willing to sell.
I will try lme hopefully it will work. Thanks KSS for your suggestion

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Originally Posted by rafshaf

I already tried that by going to different yards and meeting with yard managers but no one is willing to sell.
I will try lme hopefully it will work. Thanks KSS for your suggestion

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What is your pitch? I don't know anything about Virginia's regulations but unless your pricing isn't competitive or the yard has rigid supply lines it's usually not a problem. My first big clients were scrapyards and I bought from them just walking through the door even before I had a business license.

that what I thought they might already have contracts and don't want new buyers. I already have registered company ,I was planning to get export license when someone is willing to sell.
I will export it directly so I believe I don't need waste storage license .Looks like its not easy to buy scrap for new buyers with no buying history.

I have clients in Pakistan ,I was planning to buy 100 Mt's initially then 500 to 1000 per month. I also walked in to some yards in Virginia and some in Maryland but they don't give any detail on pricing and just refuse to sell.
I will keep visiting yards hopefully someone will sell.
Thanks JJ

Quote:

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Originally Posted by JJinLV

Hi RafShaf,

All the scrapyards you went to sell scrap. But they might already have contracts to fill for where it goes or might have state or local regulations on who they sell it to. But they do sell it. The yard I'm working out of at the moment just today loaded three full truckloads of light iron for Pakistan (about 65 tons) so for sure you can make it happen. At a minimum you'll need a business license from the state of Virginia where you are and you'll probably have to get something from the following linke for the exporting end https://www.bis.doc.gov/index.php/licensing

Depending on how much you plan to store preparing to export you'll probably also need a solid waste permit for the storage of scrap metals unless you're buying containers full directly to port. But if you have a business license and the means to receive loads and do any physical prep for export, and if your buy price is competitive, you'll find sellers soon enough.

JJ

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that what I thought they might already have contracts and don't want new buyers. I already have registered company ,I was planning to get export license when someone is willing to sell.
I will export it directly so I believe I don't need waste storage license .Looks like its not easy to buy scrap for new buyers with no buying history

Quote:

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Originally Posted by JJinLV

What is your pitch? I don't know anything about Virginia's regulations but unless your pricing isn't competitive or the yard has rigid supply lines it's usually not a problem. My first big clients were scrapyards and I bought from them just walking through the door even before I had a business license.

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I have clients in Pakistan ,I was planning to buy 100 Mt's initially then 500 to 1000 per month. I also walked in to some yards in Virginia and some in Maryland but they don't give any detail on pricing and just refuse to sell.
I will keep visiting yards hopefully someone will sell.
Thanks JJ

Quote:

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Originally Posted by rafshaf

I have clients in Pakistan ,I was planning to buy 100 Mt's initially then 500 to 1000 per month. I also walked in to some yards in Virginia and some in Maryland but they don't give any detail on pricing and just refuse to sell.
I will keep visiting yards hopefully someone will sell.
Thanks JJ

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Yards aren't going to give you pricing most times. They're gonna respond to your pricing. Set your pricing then send it to yards. If yours is as good or better than what they already have, you can lock in an order or two from them. Depending on the yard you'll also need to pass a credit background check so they can see you have the resources to pay.

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Originally Posted by JJinLV

Yards aren't going to give you pricing most times. They're gonna respond to your pricing. Set your pricing then send it to yards. If yours is as good or better than what they already have, you can lock in an order or two from them. Depending on the yard you'll also need to pass a credit background check so they can see you have the resources to pay.

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I have no idea how to calculate price for a particular scrap item, I'm not sure how to make an offer even more because no one replies email or want to talk on phone about scrap selling.
I will revisit yards again and will leave my offer with them, it might work
Secondly do they take care of shipping to overseas as well , how that part works ? thanks JJ in advance.

Go into any place, have cash or certified funds, pay higher than what they are getting, have trucks ready to go to haul it away, follow all laws. 99% of any metal dealer will sell in the US to you.

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Originally Posted by rafshaf

I have no idea how to calculate price for a particular scrap item, I'm not sure how to make an offer even more because no one replies email or want to talk on phone about scrap selling.
I will revisit yards again and will leave my offer with them, it might work
Secondly do they take care of shipping to overseas as well , how that part works ? thanks JJ in advance.

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I would think they would just supply the material and you would be responsible for all logistics. Otherwise they would just do the work to sell it overseas themselves. I was under the impression you have a way to get it from here to there, but if you don't know pricing, how to move the stuff, where youll keep it, etc Im not sure I would sell to you either. You have to go in there looking like you know what youre doing. Meaning you need to have the funds to purchase the material, and trucks ready to take it away from their yard. Other than that I dont think they care about much else. If you can pay, and can take how much you pay for in a timely manner, they would work with you. But if they dont KNOW that you can do those 2 things they arent going to sell to you. Why would then when there are other that have proved they CAN pay and can take the materials.

If you have a buyer lined up internationally I would think you would have your shipping costs wrapped up into whatever you are charging them.

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Originally Posted by kss

I would think they would just supply the material and you would be responsible for all logistics. Otherwise they would just do the work to sell it overseas themselves. I was under the impression you have a way to get it from here to there, but if you don't know pricing, how to move the stuff, where youll keep it, etc Im not sure I would sell to you either.

If you have a buyer lined up internationally I would think you would have your shipping costs wrapped up into whatever you are charging them.

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Thanks KSS for your response, Basically I'm new in this business and buying it for my bother in Pakistan. I am trying to take as much information as possible. some scrap dealers also provides Shipping services with a different price ,that's why I asked.

I can see why the yards don't want to deal with you. You're going in on a whim. There's a difference between sniffing around and making offers. It's kind of like the guy who stops to buy a car on the side of the road with no posted price. They stop and ask because it might that little old woman who think the '69 Vette she has in the driveway all dirty and scummy is probably only worth like, 500 bucks. From the way it sounds, you're not serious. And if you have a buyer for what you get, they tell you what to offer.

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Originally Posted by IamTheGreatest

I can see why the yards don't want to deal with you. You're going in on a whim. There's a difference between sniffing around and making offers. It's kind of like the guy who stops to buy a car on the side of the road with no posted price. They stop and ask because it might that little old woman who think the '69 Vette she has in the driveway all dirty and scummy is probably only worth like, 500 bucks. From the way it sounds, you're not serious. And if you have a buyer for what you get, they tell you what to offer.

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how can you offer someone who says we don't sell. I'm willing to pay more than others, driving one yard to another takes time and if someone just refuse to sell and make and excuse that wastage of time.
how can I make an offer ? any suggestion ?. Thanks !

Make the offer. Offer a contract. You're not coming across serious enough. Not a long term offer. Make a "I want 20 tons now".

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Originally Posted by IamTheGreatest

Make the offer. Offer a contract. You're not coming across serious enough. Not a long term offer. Make a "I want 20 tons now".

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Thanks IamtheGreatest, that what I was looking for. so basically I should send them a contract with my offer more than others , some type of agreement that I will buy this much from you.

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Originally Posted by IamTheGreatest

Make the offer. Offer a contract. You're not coming across serious enough. Not a long term offer. Make a "I want 20 tons now".

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Thanks @IamTheGreatest,that what I was looking for, so basically I have to send them an contract with my offer including business and bank details etc, some kind of Agreement like I will buy this much from you.
just to prove that I'm a serious buyer. Thanks again.

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Originally Posted by rafshaf

Thanks @IamTheGreatest,that what I was looking for, so basically I have to send them an contract with my offer including business and bank details etc, some kind of Agreement like I will buy this much from you.
just to prove that I'm a serious buyer. Thanks again.

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I agree with this. Just showing up and asking a few questions about prices and amounts and stuff may come off as not a serious buyer and not someone they want to deal with. Also, for all they know you could be their competition just trying to get their pricing info/structure out of them so you can undercut them or for some other reason that would be detrimental to them.

I think if you go in there and say something along the lines of "I want to buy 20 tons for $X/ton, by next week. Here is my business card, and here is a paper detailing my offer. Is that something you are interested in?".... They may be more receptive. On that paper you can say when you want it by, how many tons you want, what price per ton you can pay, etc, etc.

Another thing that may be interesting to them is to offer the money upfront if they are worried about getting paid.... of course youd want to get a solid signed contract before turning over the money, but that would at least show you have the funds and are serious.

I'm a bit old fashioned in that business relationships are everything. These take time to develop because it involves trust building. It only takes a handshake between two honorable men to do good business because their word is their bond.

Maybe it's poor advise in this day and age of legal contracts.

It seems to me that the barrier you are trying to break through would be that first transaction. Do that one thing and successive deals might become easier to accomplish.

Maybe set your sights low on that first deal just to break the seal ?

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Originally Posted by kss

I agree with this. Just showing up and asking a few questions about prices and amounts and stuff may come off as not a serious buyer and not someone they want to deal with. Also, for all they know you could be their competition just trying to get their pricing info/structure out of them so you can undercut them or for some other reason that would be detrimental to them.

I think if you go in there and say something along the lines of "I want to buy 20 tons for $X/ton, by next week. Here is my business card, and here is a paper detailing my offer. Is that something you are interested in?".... They may be more receptive. On that paper you can say when you want it by, how many tons you want, what price per ton you can pay, etc, etc.

Another thing that may be interesting to them is to offer the money upfront if they are worried about getting paid.... of course youd want to get a solid signed contract before turning over the money, but that would at least show you have the funds and are serious.

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Thanks KSS for putting me on some right direction. I will definitely try that, one last question about offer, for example if they are buying an item 0.15 per pound (listed on website) how much should I pay so it looks reasonable ? I don't want to offer too high or too low . Thanks again

U might as well figure double what they are paying

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Originally Posted by mikeinreco

U might as well figure double what they are paying

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that what I thought. thanks @mikeinreco

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Originally Posted by hills

I'm a bit old fashioned in that business relationships are everything. These take time to develop because it involves trust building. It only takes a handshake between two honorable men to do good business because their word is their bond.

Maybe it's poor advise in this day and age of legal contracts.

It seems to me that the barrier you are trying to break through would be that first transaction. Do that one thing and successive deals might become easier to accomplish.

Maybe set your sights low on that first deal just to break the seal ?

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that's a tough task to break that barrier, I will try my best to break it with some good business relations. thanks @hills

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Originally Posted by rafshaf

Thanks KSS for putting me on some right direction. I will definitely try that, one last question about offer, for example if they are buying an item 0.15 per pound (listed on website) how much should I pay so it looks reasonable ? I don't want to offer too high or too low . Thanks again

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Set your margin by your sales price minus your costs. So how much is a 43000lb load in a container going to cost you to ship from the DMV to Pakistan? What price is your brother buying it at? If the container is going to cost $3000 to ship? That means for a full 43000lb container load it's going to cost you $.07/lb just for the sea freight. So if you can buy that $.15/lb for $.22/lb, you'll need to sell it for .29/lb at least just to cover the sea freight (which varies in price). You make an offer based upon your sales price minus costs. Really if you're gonna be buying and selling anything you should know that already.

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Originally Posted by JJinLV

Set your margin by your sales price minus your costs. So how much is a 43000lb load in a container going to cost you to ship from the DMV to Pakistan? What price is your brother buying it at? If the container is going to cost $3000 to ship? That means for a full 43000lb container load it's going to cost you $.07/lb just for the sea freight. So if you can buy that $.15/lb for $.22/lb, you'll need to sell it for .29/lb at least just to cover the sea freight (which varies in price). You make an offer based upon your sales price minus costs. Really if you're gonna be buying and selling anything you should know that already.

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Yeah it seems that alot of these question are kinda amateur......Possibly start small and see how the scrap industry actually operates.....I've been doing this 10 years and watching/learning and I still really have very little knowledge about the top of the food chain in this industry....seems to be some well guarded secrets

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Originally Posted by mikeinreco

Yeah it seems that alot of these question are kinda amateur......Possibly start small and see how the scrap industry actually operates.....I've been doing this 10 years and watching/learning and I still really have very little knowledge about the top of the food chain in this industry....seems to be some well guarded secrets

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I'm new in this business that's why I have asked so many amateur questions . Spammers were contacting me through ali baba and some other sites, sending me scrap pictures taken from google and were insisting me to transfer funds but I was not satisficed, its better be safe than sorry but SCARAP METAL FORUM helped me a lot, I really appreciated whoever answered my questions.

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Originally Posted by mikeinreco

Yeah it seems that alot of these question are kinda amateur......Possibly start small and see how the scrap industry actually operates.....I've been doing this 10 years and watching/learning and I still really have very little knowledge about the top of the food chain in this industry....seems to be some well guarded secrets

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The more I started dealing with buying and logistics the clearer it seems that it's mostly applying new terminology to the same principles. Like don't hit up that free section craigslist ad for dead appliances that are 40min round trip when the gas costs more then the return on the steel. Same thing just freight cost vs gas mileage

Salam Rafshaf bhai, My name is Sbahat Ali, currently living in New York, actually from Lahore, I have the same situation,. my brother is also in Lahore, wants me to send scarp to him, How did you started, can you please tell me, Bhai meri help kar do, just info bata do, I hope you dont mind, mujy call kar do, mera ******** 0092 334 5066462, bhai Intezar rahay ga

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Originally Posted by rafshaf

Hi

I live in Virginia and my brother in Pakistan started scrap business, he wants me to buy metal scrap from USA market and send it to him 500 MT's to 1000 MT's a month.
I was contacting scrap yard dealers from last few months but with no luck, everyone says they don't sell scrap. my question is how can I buy scrap from USA and export it to Pakistan
and what kind of licenses do I need.

Thanks in advance

RafShaf

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Personally I would not get near that deal before researching current.

US sanctions on Pakistan

With the worlds largest ship breaking yard located in Pakestan, I would think you would be looking to export rather than import.

https://en.wikipedia.org/wiki/Gadani_ship-breaking_yard

Gadani ship-breaking yard is the world's third largest ship breaking yard located across a 10 km (6.2 mi) long beachfront at Gadani, Pakistan.

Hi. I’m in the same boat. I’m living in Orlando,FL and starting the same business with my cousin in Pakistan. Can you reach out to me on 832 4755480. I would appreciate your advice.