The metal scrapyards & recycling industry is made up of approximately 1,000 businesses in the U.S., comprising approximately 5,000 scrapyards where metals are recycled through sorting, shearing, shredding, torching and baling, among other processes. Two thirds of U.S. scrap metals are processed domestically and one third is shipped overseas, with China consuming about 10%. Within that 10%, China consumes over 80% of U.S. scrap copper.
Ferrous and non-ferrous scrap have industry classifications to determine their respective market values based on location, condition and weight. The major market for processed ferrous scrap is steel-making at integrated mills and mini mills. Aluminum scrap is re-melted at primary and secondary smelters.
Common machinery and equipment (M&E) includes scrap-metal shredders and balers, briquetters, scrap shears, material-handling equipment, sorting equipment and rolling stock.
Besides determining scrap inventory values, we’ll find out whether equipment usage and maintenance are typical for the industry, understanding that when a company is financially stressed, maintenance is often the first to suffer. On the other hand, well-maintained equipment means the company is more likely to meet their financial obligations.