New Guy
Happy New Year to You!
I'm thinking of becoming a scrap metal dealer and I hope that you can help me by giving me some advice.
For a start, I'm looking at buying a few tons of aluminum UBC and selling them to the local buyers for a slight profit margin.
However, before I start on this business venture, I hope you could give me some advice on what to look out for and the pitfalls in the UBC business.
Thanks in advance!
Last edited by smfmichael; 01-05-2013 at 08:58 AM.
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Things to look out for? Crushed cans with rocks in them.
We're the renegades of Junk!
How are you going to be buying them? Reverse vending machines, stationary location or a mobile route? Each one is a completely different kind of business. A little more information will get you better advice back.
New Guy
Hi Filthy, thanks for your advice.Originally Posted by Filthy
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what state are you in? is there a deposit on cans in your state?
New Guy
Hi freonjoe, thanks for your reply.
I intend to import the ubc from another country and sell them to a local buyer.
The profit margin is about 10% (after deducting all expenses), that's why I have to buy tons of ubc to make this business venture worthwhile.
From your experience, do you think it's advisable to start with ubc, or should I start with other scrap metals?
Are the cans condensed into standard size bricks? For that volume you might want to go to a regional buyer rather than a local buyer. Also if the quality standards don't meet specs (percentage of foriegn materials) then you will be liable for it.
New Guy
Yes, i'll be buying baled ubc.
Actually, I'm not too worry about selling because the local buyer's price is already quite attractive and they're not so strict on specs. Of course, if i can meet the regional buyer's specs, then I can have a higher profit margin.
As this is the first time I'm buying ubc, I'm more worried of the sellers. A lot of time, the sellers tell me that their ubc are free from foreign materials, or less than 1% or 2% impurities.
May I know is there a way to check for impurities for baled ubc?
The problem with buying baled UBC is that there is no easy way of telling the percentage of foriegn materials without tearing the bale apart. I've passed on a few of these deals because of that. The last thing you want is to be blacklisted by a buyer because of an inferior product.
New Guy
It seems like impurities is the major concern for the UBC industry, I'll need to be extra careful when dealing with the sellers.
Last edited by smfmichael; 01-05-2013 at 12:34 PM.
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