If you have a pile of old cable, plumbing offcuts or a dead air conditioner, the first question is usually what it is worth. There is no single answer, because several things are weighed up at once. This guide explains what affects scrap metal value, so you know what a buyer is looking at and how to prepare your material before you call.
Why Scrap Metal Values Vary
Scrap is valued on the metal that can be recovered from it, not on what the item cost new. Two loads of the same weight can be assessed very differently depending on what they contain and what condition they are in. Market movements then shift the number from one day to the next.
That is why we quote on the day rather than publishing a fixed list. Our guide to how scrap metal prices are worked out covers the quoting process itself. This article looks at the individual factors behind it.
The 7 Factors That Affect Scrap Metal Value
1. The type of metal
The biggest factor is what the metal actually is. Non-ferrous metals such as copper, brass, aluminium and lead contain no iron and are not magnetic. Stainless steel does contain iron, but it is usually handled alongside the non-ferrous metals because of its nickel and chromium content. These metals generally carry more value by weight than ferrous metals.
Ferrous metals, meaning iron and steel, are magnetic and plentiful. Oz Scrap Recycling accepts iron and steel only in bulk loads of 50 tonnes or more.
2. Grade and purity
Each metal is split into grades. Clean, uncoated copper wire sits above copper pipe with fittings attached, which sits above mixed copper. Aluminium extrusions, sheet, castings and wheels are all graded separately. The closer an item is to pure, single-grade metal, the higher it is assessed.
3. Cleanliness and contamination
Anything that is not the target metal reduces value. Common contaminants include plastic insulation, paint, heavy solder, oil and grease, rubber, dirt, and attachments such as steel screws, brackets or plastic fittings. These are either weighed out or they push the item into a lower grade. Insulated cable, for example, is valued on the copper recovered from it rather than its total weight.
4. Sorting and separation
A mixed bucket of copper, brass and aluminium is usually assessed at the level of its lowest-value content, because the buyer has to sort it later. Keeping each metal in its own container lets each one be graded on its own merits. A simple magnet test helps: if a magnet sticks firmly, the piece is likely ferrous and should be set aside.
5. Quantity and weight
Larger quantities are generally easier to collect efficiently, and material that is easy to reach makes the job simpler. Final weight is confirmed when the material is inspected, so a rough estimate when you call is fine.
6. Global metal markets and the Australian dollar
Metals such as copper, aluminium, lead and nickel trade on international markets, including the London Metal Exchange, and their prices move daily. Because metals are traded in US dollars, the exchange rate also changes what scrap is worth locally. This is why scrap metal prices in Sydney can change from week to week, even for identical material.
7. Mixed-metal items
Electric motors, air conditioners, compressors and gearboxes contain a combination of copper, aluminium and steel. They are assessed differently from clean, single-metal scrap, based on the type of unit and the metal likely to be recovered from inside it. Telling the buyer exactly what the item is helps them assess it accurately.
How to Get a Fair Assessment
A little preparation makes it easier for any buyer to grade your material correctly:
- Sort metals by type: copper, brass, aluminium, stainless and lead in separate containers.
- Remove steel screws, plastic and rubber where it is quick and safe to do so.
- Keep material dry and contained, away from dirt and rubbish.
- Describe what you have when you call, including cable types or the make of a motor or unit.
- Send clear photos and give a rough idea of the quantity.
When comparing buyers, ask each one which grade they are pricing your material at and how weight is confirmed. That makes the comparison like for like.
How Our Mobile Service Works
Oz Scrap Recycling works entirely on site, so there is no yard to visit and nothing to haul across town. We come to your home, workshop, business or job site, inspect the material there and confirm weight and grade. You can see the full range of scrap metal collection services we offer, or read more about us as mobile scrap metal buyers in Sydney.
Oz Scrap Recycling is a mobile scrap buyer. We come to you across Sydney, NSW and the ACT. Call 0413 609 674 to arrange a pickup.