Scrap metal recycling collects, sorts and melts used metal back into new steel, copper and aluminium. Recycled aluminium uses about 95 percent less energy than primary production, recycled copper about 85 percent less and electric arc steel 60 to 75 percent less. That energy saving is what a smelter is really paying you for, and it is why recycled supply now sets the direction of several metal markets rather than following them.
Scrap Price Today editorial guide, checked against current exchange settlements, recycler grade specifications and mill buying programs. Figures are examples; today's prices are on the live scrap price board.
This is the chain your material moves through, and the points in it where the price you are offered is decided.
The chain, and who takes a margin at each step
| Collection | Yard processing | Consumer | Product | |
|---|---|---|---|---|
| Measurement | Who handles the material and what they add | Same | Same | Same |
| Who | Households, trades, demolition contractors, dismantlers | Scrap yard or processor | Mill, smelter or refiner | Manufacturer |
| What happens | Material is gathered and delivered | Sorted by grade, sheared, baled or shredded | Melted and refined | Rebar, cable, sheet, castings |
| What they add | Sorting, which is worth 15 to 25 percent | Grading, size reduction, freight consolidation | The energy saving over primary metal | Nothing, they buy metal |
| Where your price comes from | The end of this chain, working backwards |
Every step takes a margin for what it adds. That is why a yard board sits below an exchange price rather than at it, and why the arithmetic in our yard pricing guide starts at the consumer and works back.
Ferrous: shredders, magnets and furnaces
Cars and appliances go through a shredder that reduces a vehicle to fist-sized pieces in seconds. Magnets pull out the steel, eddy-current separators throw non-ferrous into a separate stream, and air systems remove plastics and foam.
The steel is charged into an electric arc furnace, which runs almost entirely on scrap. Those furnaces produce close to 30 percent of world steel and the share keeps rising as mills cut emissions, which is why ferrous demand is structural rather than cyclical.
Non-ferrous: sorting, smelting, refining
Non-ferrous is graded by hand and increasingly by sensor-based sorting, then melted in a secondary smelter. The cleanest grades go almost straight to a rod mill; lower grades are refined electrolytically.
Aluminium is melted by alloy family, which is the entire reason sorting by grade pays. Lead from batteries, zinc, nickel and the platinum group metals from catalytic converters each follow their own route with their own economics.
Why recycled supply now moves prices
This is the part that has changed, and it matters to anyone selling.
The International Copper Study Group revised its market balance twice in a year, most recently back toward surplus, partly because secondary production from scrap is growing faster than primary. Recycled copper already meets roughly a third of world demand. Scrap is the flexible part of the supply balance, which means collective selling behaviour feeds back into the price.
Industry analysis of recycled platinum group metals shows the same effect more sharply: recovered volumes ran about 10 percent above what vehicle scrappage rates alone would predict when prices were high, and about 18 percent below them when prices fell. Material does not disappear when prices drop; it waits in sheds.
The global trade, and why the same grade pays differently
Scrap moves from countries that generate more than they melt to countries that melt more than they generate. The United States, European Union, United Kingdom and Japan export ferrous; Turkey, India, Bangladesh, Pakistan and South Korea import it.
Turkey imports roughly 20 million tonnes of ferrous scrap a year, more than any other country, which is why its import price functions as the world benchmark. Policy sits on top: China admits only material meeting its recycled raw material standards, and export restrictions in South Africa and Saudi Arabia hold domestic prices below world levels.
The result is a spread of more than 20 percent between our strongest and weakest markets for the same metal on the same day, which our local prices analysis sets out.
Key numbers
- Recycling aluminium saves about 95 percent of the energy of primary production; copper about 85 percent (International Aluminium Institute and industry data).
- Electric arc furnaces produce close to 30 percent of world steel and run almost entirely on scrap (World Steel Association).
- More than 600 million tonnes of steel scrap are recycled each year, the largest recycled material stream in the world (Bureau of International Recycling).
- Recycled copper meets roughly a third of world demand, and secondary production is growing faster than primary.
- Recycled platinum group metal volumes ran about 10 percent above scrappage-based estimates in a high-price period and 18 percent below in a low-price one (CME Group analysis).
- Turkey imports roughly 20 million tonnes of ferrous scrap a year, more than any other country.
Recycling household metal well
- Separate metal from general waste; cans and small items to municipal recycling, larger items and copper to a yard.
- Sort before you sell. It is worth more than any timing decision and it is the step the whole chain rewards.
- Follow the refrigerant, battery and vehicle rules in the preparation guide.
- Use licensed yards with certified scales. They keep stolen metal out of the chain, which is what keeps the legitimate market working.
A scrap price is the recycling chain's bid for your material. The live board shows what that chain is paying today, and the country pages show it in local currency and units.
Questions people ask
Does recycled metal lose quality?
Copper and aluminium do not; they can be melted and reused indefinitely. Steel loses only a small share to slag each cycle, which is why the same scrap can become new rebar, beams or car bodies repeatedly.
Where does my scrap actually go after the yard?
Steel goes to an electric arc furnace or a steelworks, at home or abroad by ship. Copper and aluminium go to secondary smelters and refiners. Exporting countries send a large share to mills in Turkey, India, Bangladesh and South Korea.
Why does recycling affect the price I am paid?
Because your price is the recycling chain's bid for the material. When furnaces are short of scrap they pay up; when supply is strong or exports are restricted they pay less. Recycled copper already meets about a third of world demand, so scrap is part of the balance rather than a side market.
Common mistakes
- Putting large metal items in general waste instead of taking them to a yard.
- Mixing alloys the smelter would have paid more for separately.
- Using unlicensed collectors who cannot show a scale ticket.
- Assuming recycled metal is second-rate; refined recycled copper meets the same standard as primary.
- Ignoring import standards and export rules that decide which grades pay in your country.
Sources and further reading
- Bureau of International Recycling: world recycling statistics
- World Steel Association: electric arc furnace output and scrap use
- International Aluminium Institute: energy and recycling data
Related guides
- Ferrous vs Non-Ferrous Metals: Telling them apart with a magnet, and what the difference means for price.
- How Scrap Yards Calculate Prices: Margins, contamination deductions, moisture and tare between the market price and your receipt.
- How to Prepare Scrap Metal for Sale: Cleaning, separating and loading scrap so it grades higher at the scale.
Check today's numbers before you sell: the scrap price board, the price charts, the scrap value calculator and local rates on our scrap prices by country pages.
Frequently asked questions
Does recycled metal lose quality?
Copper and aluminium do not; they can be melted and reused indefinitely. Steel loses only a small share to slag each cycle, which is why the same scrap can become new rebar, beams or car bodies repeatedly.
Where does my scrap actually go after the yard?
Steel goes to an electric arc furnace or a steelworks, at home or abroad by ship. Copper and aluminium go to secondary smelters and refiners. Exporting countries send a large share to mills in Turkey, India, Bangladesh and South Korea.
Why does recycling affect the price I am paid?
Because your price is the recycling chain's bid for the material. When furnaces are short of scrap they pay up; when supply is strong or exports are restricted they pay less. Recycled copper already meets about a third of world demand, so scrap is part of the balance rather than a side market.