Bypassing the "middle guy" for copper sales.

Does anyone know where the copper goes when the scrap yard sells it off? I mean if the scrap yard is paying between $3.10 and $3.40 a lb for #1, what are they getting for it? Does anyone on here bypass the middle guy and deal with a specific buyer for more profit?

I thought of this. Like mech688 said, " Semi load" and you got to find the mills. My buddy still runs flatbeds. he would help me and he scraps too. Also my moms cousin's husband owns a trucking co. that hauls rock so i could maby get my hands on some dump trailers. hmmmmmm

You can try selling to a wholesale scrap yard who purchases scrap from all the other smaller retail yards in your area.

Originally Posted by Mechanic688

You would need a semi load to even get noticed by the big buyers. The yards are probably only making $ .10-.15 a lb. above what their paying you. Here's a place you can keep track for yourself. http://www.scrapmonster.com/
http://www.metalprices.com/

Thanks for the links, very useful.

Keep in mind that the copper market is volatile. You could save up for a year and when you go to cash in on your copper, it could be down around $2.50. This would blow your whole profit margin. Just food for thought...

Originally Posted by High Voltage Processing

My copper NEVER goes out of the U.S. I only use companies that are in the U.S and that keep the copper here as well. I am always amused when I read comments from people who want to start chopping wire on a large scale. Its not easy and really not cheap. Yes I make money and good money at that but to do it right you need a lot of start up cash and even more luck.

My partner and I cashed out our retirement funds, we borrowed from friends and family, we sold our cars and bought cheap Kias, and our families ate hot dogs and beans while we got the business up. The risk is large but it can pay off if done right. Still, when I think back to the start up and what would have happened if we made one mistake I shudder. I could have ruined my family for life.

Well said jim...some on here think they are makin profit if they get 500 lbs...dont get me wrong it is worth it but to do it and make money you need large quantitys!

Jim makes an excellent point I have seen and witnessed a wire chopper running firsthand and to keep it feed and going is a different animal altogether. Say your wire chopper does 1,000 lbs an hour. For a full week you have to find a trailer load of wire and hope for like he said 78 percent recovery or better. Thats running it 7:30 to 4:00 o clock. Most companys will run two shifts or buy a bigger wire chopper eventually. Most wire is 80 percent but all scrap yards mix 45 percent and 60 percent recovery in with there wire because they can get away with it. I have witnessed it a million times make small bale with BS wire bale good wire in with bad wire and boom you have what looks like a great bale of wire but will only recover 75 percent or less. The copper game is very tricky with very little margin for error or else you have to grab your ankles and take it like a champ and take the loss. Businesses aren't in business to lose money they are in business to make money. All I can say is give it a shot maybe you make it maybe you don't but if you lose your pants take it as a learning experience. Some people make it big in this business some people lose there ass.

Originally Posted by High Voltage Processing

That is more common then you would think. It amazes me how they will screw over someone and then can't figure out why they get no repeat business. Lucky for them a lot of people try to get in this business and there are a lot of new suckers for them.

Hey I resemble that remark!!

I have witnessed it all in my lifetime bales of 1 1/2 steel being turned into number one bundles with new production scrap being baled around it. I have seen old painted aluminum bales turned into new aluminum bales simply by taking a bath in silver paint. That was the best f-YOU I have seen to date and made me chuckle allot. I have to be honest though I am guilty of mixing low recovery with high recovery. The problem with the wire chopping business is you always always get the crap they couldn't strip themselves. You also get the wire thats so covered in tar and other crap that they couldn't strip to. Here take this junk and turn it into money and call me back if it works for you. There's so many suckers out there though they come and they go.

There's risk in everything we do. Jim, I commend people like yourself and your partener. You saw an opportunity, took a risk and it sounds like it is paying off. I was speaking with one of the owners of a local scrap yard, a small one. This guy is the underdog around here, but he pays the best price for copper per pound in this area (3.15 lb). He was telling me about "gypsies" that come from the NYC area and drive around in there trucks paying top dollar for #1. He expained that these guys have no overhead, no employees to pay, no taxes, etc so how can he compete. These guys even come to you so theres no labor on your end and your not burning your gas. Check under "gypsie's" and "copper" on You Tube. I had to see for myself.