Worked scenario
Bought mixed, sold sorted, margin in the sorting
Sorting is where a scrap dealer's margin is made, and dealers who do not measure yield by source cannot tell which suppliers are worth buying from.
3 min read
A mixed load is bought at a rate reflecting an assumed composition. Sorting reveals the actual composition, and the difference is the dealer's margin or loss.
Assumed composition is rarely revisited
The rate offered to a supplier is set by convention and relationship. Whether that supplier's loads actually contain what the rate assumes is knowable and usually unknown.
Cheap loads are not always cheap
A supplier offering a low rate on loads that sort badly can be worse business than one charging more for clean material. Only yield data distinguishes them.
What changes
- Yield by grade recorded against the load and the supplier
- Purchase rate assessed against realised composition
- Suppliers ranked on yield, not only on rate
- Sorting labour costed against the value recovered
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