How Scrap Metal Pricing Works

Prices Are Market-Driven

Scrap metal prices aren't set by the yard — they're derived from global commodity markets that trade millions of tons of metal every day. The yard applies a processing margin to convert the commodity price into what they can pay you at the gate, but the foundation is always the market.

This is why prices change daily, sometimes significantly. A shift in Chinese manufacturing demand, a major mine outage, or a trade policy announcement can move copper prices by several percent overnight.

The Key Benchmarks

Copper: The Comex (New York Commodities Exchange) is the primary copper price reference in the US. Comex prices are quoted in cents per pound. When a yard says "copper is at $X today," they're discounting from the Comex settle price.

Aluminum: The London Metal Exchange (LME) is the global benchmark for aluminum and most other non-ferrous base metals. LME prices are in US dollars per metric ton.

Steel: Ferrous metals track domestic steel pricing — the Midwest Hot-Rolled Coil price is a common reference, though scrap grades like HMS (Heavy Melt Scrap) have their own index.

These benchmarks are publicly available. Kitco and CME Group publish Comex prices. The LME publishes official closing prices daily.

How the Yard Price Is Derived

A yard takes the benchmark price and subtracts their processing costs — labor, equipment, transportation, overhead, and profit margin. The result is the "buy price" they post.

Example: If Comex copper is at $4.50/lb and the yard's processing spread is $0.60/lb, they'll pay around $3.90/lb for #1 copper. That spread is fairly consistent, which is why yard prices track the benchmark closely even when the absolute number changes.

Non-ferrous metals are almost always priced per pound. Ferrous metals (steel, iron) are priced per hundredweight (CWT) — meaning per 100 pounds. A price of "$8/CWT" means $0.08/pound.

How Material Grade Affects Price

Within each metal type, cleanliness and purity determine the grade — and the grade determines the price. This is where preparation pays off.

For copper: Bare bright (fully stripped, bright copper wire) is the top grade. #1 copper (clean pipe and tubing, uncoated) is just below. #2 copper has solder, paint, or minor contamination. Insulated wire is priced based on estimated copper content.

For aluminum: Clean cast aluminum pays more than painted cast. Clean extruded aluminum pays more than dirty. UBC (beverage cans) are a separate grade.

For steel: Heavy melt (HMS 1&2) is the cleanest grade. Light iron includes thin sheet, tin, and small pieces. Auto shred comes from vehicles. Each grades differently.

Why Prices Change Daily

Commodity markets move on supply and demand signals that update constantly:

• Manufacturing activity in China (the world's largest metal consumer)

• US construction and manufacturing data

• Currency movements (metals are priced in dollars; a strong dollar suppresses prices)

• Mine production and disruptions

• Energy prices (aluminum smelting is extremely energy-intensive)

• Trade tariffs and policy announcements

For sellers, this means the price you see today is accurate for today. A load you're planning to bring in next week may be worth more or less. Most regular scrappers check prices weekly and bring loads when prices are favorable.

How to Get the Best Price

Know the current benchmark. Our price page is updated daily. Checking it before you load up tells you whether today is a good day or whether waiting makes sense.

Bring clean, sorted material. Grade determines price. The same metal at a higher grade pays more.

Ask about volume pricing. Commercial accounts and large loads can sometimes negotiate rates above the standard posted price.

Don't wait too long in a falling market. If prices are trending down, holding a load of copper hoping for a rebound is a speculation bet — not always the right call.