Atlas Metal Recycling and Processing
Scrap Metal - Ferrous
Scrap metals are divided into two major categories - "ferrous" and "non ferrous". Ferrous scrap metal primarily contains iron and steel while non ferrous scrap metal contains little iron or steel. Examples of ferrous scrap include scrap iron and steel recovered from old automobiles, farm equipment, household appliances, structural steel, and anything else that was made from iron and steel. Ferrous scrap itself is divided into two categories - "industrial" and "obsolete" scrap.
Industrial scrap is generated by the metal working industries. For instance, when a piece of metal is cut, or a hole is punched into it, the metal which is left over is industrial scrap. In order to obtain industrial scrap, the scrap metal processor will contract with the supplier/manufacturer. Along with competitive purchasing, the scrap processor must often provide containers or conveyances as well as shipping services at the industrial supplier's plant.
Obsolete scrap consists of old, worn out, or unwanted metal that has outlived its originally intended purpose. The scrap metal processor purchases this "secondary" raw material from the public or industry and then segregates, processes, and prepares the scrap into specific grades. The processor then sells and ships the scrap to a specific end-use consumer who remelts the scrap into a new product.
Scrap Metal - Non Ferrous
Non ferrous scrap metal is scrap metal other than iron and steel. Examples of non ferrous scrap include aluminum, copper, zinc, lead, and nickel and is also characterized as either obsolete or industrial. Although non ferrous scrap comprises a smaller percent of the scrap metal market by tonnage than ferrous scrap, the non ferrous metal is generally more valuable by the pound.
The Scrap Metal Market
The market for the sale of scrap metal is consumer-market driven. The demand for scrap metal is generated by the industrial consumer since scrap metal is used as a less expensive alternative to virgin materials. Scrap is not only less costly, but it is also more energy efficient than virgin materials, and as a result, significant energy savings are realized by using scrap.
The market for scrap metal, especially non ferrous, is highly volatile, and, therefore, prediction of scrap prices is extremely difficult. The large swing in metal markets pricing accounts for the dramatic changes in annual sales volumes of scrap metal firms. As such, scrap processors seek to reduce the impact of these volatile markets on earnings by hedging scrap metal in the commodities markets.
The Nonferrous Metal Service Center - Atlas Metal Sales
Atlas Metal Sales is a small, full service metal supplier. accounting for 8-10% of total sales volume and profits. Atlas Metal Sales sells new alloyed metal products to numerous manufacturers in the Rocky Mountain area. With almost double digit growth in the light manufacturing industry, the need for a local full service supplier of specialty metals will continue to grow. By purchasing modern equipment that can cut specialty shapes and sizes Atlas Metal Sales can grow at double digit levels. Profit margins for this type of sales and service will continue to grow and should reach levels that exceed 40%. By expanding this division and its ability to service light industry, Atlas will attain higher profit margins.
