Scrap Steel

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  • Scrap Steel

    So I usually just donate my small amounts of scrap steel from tvs and computers to my local scrap yard for free. I recently bought a trailer so I thought why not load up and do a run to the big scrap yard. (Sims Metal - Kwinana - Perth)
    First time there and although they have a public drop off area, it really was a hassle. Had to have all the high vis, hard hat,safety glasses, gloves ect. (I work in the mining industry so I’m used to this...just not when hobby scrapping).
    I had about 480kg of scrap (I weighed it at home as I loaded it) I off loaded and went to the bridge. After watching Ben’s recent videos of his runs in Melbourne getting 16 cents a kilo , I was optimistic. Well, their public price in Perth is $76 a ton! To top it off they calculated my load @ 400kg. I guess they only work in 100kg increments. And after all that there was a $26 a ton Contrib charge. No idea what that was for but it took me down to a piddling $50 a ton. 5 cents a kilo!
    I don’t know if there are many other scrap yards in Perth paying for scrap steel but I’ll be going back to offloading it at my local yard from now on.

  • #2
    I go to one in Melbourne and get 15c a kg. I work out of my old, slightly beatup, but wonderful Nissan Pulsar and even then it's worth doing steel only runs.

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    • #3
      I don’t know if it’s just Sims metal being cheap bastards or it’s just a Perth thing, but I was looking forward to doing big steel runs as the scrap season is starting next month in my area. I’ll be avoiding the steel and scrapping most things on the road side.

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      • #4
        From what I see on your ticket, the weight is 400Kg.
        Gross weight (2840Kg) - Tare weight (2440Kg) = 400Kg.
        So I guess there are 2 options :
        (1) your scale at home is off (2) they ripped you off
        About the contrib charge or the price I have no idee what they are or if they are high or low, I'm still to new in this field

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        • #5
          I think the contrib charge is to account for any plastic and other rubbish that is thrown in with the shred light gauge steel. Many yards simply factor that in to their price rather than deducting it afterwards. I would assume that if you brought in heavy gauge steel they would not have a contrib charge.

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          • #6
            Yea I guess that makes sense, still not happy at the price compared to the eastern states.

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            • #7
              Yeah Cliffy, whilst I have no idea what this contribution charge is, they have paid you for light gauge steel #2. So the 5 cents a kilo they paid is probably very close to the mark. Think you might find that some yards don't even want to take light gauge.

              My mate where I am is currently trying to buy a crusher so that he can make nice solid bricks out of the light gauge. He will then get a premium price for this light gauge. I've probably got 2-3 tonnes of the crap piled up here, and at today's prices, I'd probably get about $100/tonne. Beats the hell out of $50/$60.

              I'm eastern state but in Queensland, and that is quite different to say Melbourne or Sydney. What about you local fella who you were donating it to? What sort of a price would he give for the 400kg load you had? Might be worth asking mate.
              OKEDEN SCRAP & PM's
              http://www.okedenscrapandpms.com.au

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              • #8
                My local scrap yard has a few big sims metal steel bins for their own use as they buy bulk lots of mixed scrap that they dismantle themselves. They will take steel but not pay for it. I would assume they get a slightly better price then I did but not much more.

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                • #9
                  Hey Cliffy,

                  Where abouts in Perth are you based? I know a couple of good local scrap metal people who are approachable and friendly. I've never actually sold steel to them, but happy to send you the names etc and see if they can help

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                  • #10
                    Hey RWLauren

                    Im south of the river between Rockingham and Mandurah.

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                    • #11
                      Scrap steel prices are based on international rates, just like gold it doesn't change country to country, the yards that don't pay for light iron don't because they don't have an economical way to transport it, sims on the other hand have large volumes so they don't need small scrappers loads, they used to deduct 12%, think they still do here for rubbish or something, but to deduct 33% off of what is already under priced is a total rip off, there's not one item on their price list that's up to competitors prices, but steel is a joke to pay 5c kg in todays market.

                      currently we get 15c kg for light iron, but non ferrous is booming, motors/tranformers 62c kg, extruded ally $1.50 kg, candy copper $7 kg, milberry $7.20 kg, batteries 85c kg
                      Buying eWaste link here

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                      • #12
                        this makes me feel a whole better getting 10ckg just b4 easter and reinforces the age old adage..It could always be worse. I took 1.2 tonne for $122 when BB was getting $160 a tonne where he is. I made the mistake of not checking the rate b4 unloading and just expected something around the same value. When the rate came in low I naturally thought WTF and queried it with the yard owner who struggled through his broken english to reassure me the price was right insisting it was the market value. When he mentioned they are a feeder for Sims I accepted I just got low balled and would look for a better yard. The week after easter I decided to double check their price and it had risen to 12ckg. I rang around and found other yards were similar, a little higher but not high enough to warrant the extra travel for the amount of trips I had to make. I came to the conclusion that what they paid was a bit less than I could have gotten at that time but wasn’t really the big bend over and cop it sweet I thought it was. This IS Sydney after all where we get free prostrate checks with every transaction but it’s not for health reasons, it’s just a ploy to do you over. I decided to just suck it up and stick with them since they are close by. Two months later they were paying $140 a tonne.
                        the first time I went there I wore thongs and got told to wear something safer so the next time I wore some Dunlop volleys. That was acceptable and with no other safety code requirements I blended in with the yard workers.
                        I think you’re right about the rounding off of weights but have no way of double checking without the hassle and expense of going to a public weighbridge beforehand and for the extra cost and the difference involved when dealing with low quantities it’s just not worth it.
                        The contrib. charge is a bit rich but obviously offsets their dump costs from all the non scrappables they receive. A m8 who subs for them and picks up from industries told me they pay him based on how “fat” the load is and adjust the rate accordingly so sounds like he is getting charged it as well. I imagine they deal with their feeders the same way so scrap yards would want to remove any rubbish to get the higher rate.

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