Scrap You Later

10 Scrap Metal Questions with Our Founder

June 18, 2021 iScrap App Episode 37
Scrap You Later
10 Scrap Metal Questions with Our Founder
Chapters
Scrap You Later
10 Scrap Metal Questions with Our Founder
Jun 18, 2021 Episode 37
iScrap App

Where do you get your scrap questions answered? From catalytic converters to stripping copper and getting better prices at the yard, Tom answers your questions.  We had a nice range of general scrap questions to specific inquiries. Want your questions answered on the next Q&A? DM us on any of our socials, comment on our posts, or email us at [email protected] Happy Scrapping!

📲Download The App

✌️
Become A Patron

Support the show (https://www.patreon.com/iscrapapp)

Show Notes Transcript

Where do you get your scrap questions answered? From catalytic converters to stripping copper and getting better prices at the yard, Tom answers your questions.  We had a nice range of general scrap questions to specific inquiries. Want your questions answered on the next Q&A? DM us on any of our socials, comment on our posts, or email us at [email protected] Happy Scrapping!

📲Download The App

✌️
Become A Patron

Support the show (https://www.patreon.com/iscrapapp)

Tom  0:00  
Hey, scrappers, it's Tom from the iScrap App. And we're so happy that you're joining us in this episode of Scrap You Later. Now, this is going to be a longer podcast. But you know what this is going to be a Q and A driven Podcast, where we're going to be answering all of the questions that we've been asked over the last couple of weeks, just going over a bunch of different things, and hopefully will help you learn more about how to make more money, and might even give you some ideas on questions that you didn't know you had in your head that you want answered. If those questions come up, you can always email us at info at iScrapApp.com, but by following the podcasts that we have, either through the Apple Store or the Google Play Store, and subscribing, you will be able to learn more about scrap and of course, how to make more with your scrap. So without further ado, let's start with our first question. So quick question. Newer catalytic converters, did they have more precious metals inside than older ones? What happens when they get chewed up? What happens when they get broken? How do I know as being 20 years old? How do I know what to look for? What not to look for? So that's a great question by landlord picker. And when we look at the answer, you know, a lot of the newer catalytic converters have higher emission standards that were placed on them from whatever presidential administration was there. So we know that California has really high emissions, and multiple other states have adopted those policies, which have caused auto manufacturers to make catalytic converters for different states worth more money. Now, older cars have a higher probability of the catalytic converter being used more because there are more miles, and of course, nothing is made to last forever, regardless of what people tell you. So the catalytic converters, over time, could slowly have the precious metals worn away. Think about a year you're driving a scrap vehicle you're drunk going over bumpy roads, things could get broken chips, something could happen your engine you could have a minor fender bender, the cat could break a little bit, and you never know because you don't hear the rattling so while older catalytic converters have really good value. newer ones also have really strong value. And of course, by working with our RRCats.com, you'll always make more money with your catalytic converters by working with a United States-based company. Next question from Ken Ricketts. How, how about old flywheels clutches, brake rotors, and hubs? Do they have any value? Now those are generally considered a prepared number one steel prices could range depending on where the markets are. But if you have a lot of those items, you definitely should separate the things that you should think about. Brake pads could have that extra, you know, padding on there, which is in steel, and they're a little lower in value. But if you have a lot of these smaller items, heavy rotors, springs and, and hubs, you should be able to get a number one steel for them at any scrap yard you go to, unless it's a yard that's primarily a non-ferrous focused yard. And we know a lot of companies, a lot of people across the country do only non-ferrous, so you might have a problem there. So hopefully, that helps you out. Another question we had is the metal alloy from transformers worth more than regular scrap steel. So we've done a couple of videos and blogs on taking Transformers apart. And the outside of the transformer, of course, is going to be steel. And then, once you get into it, the windings themselves are either copper or aluminum. But underneath those windings, if you're taking apart larger units, I'm not talking about light ballasts to the smaller transformers, but I'm talking about larger ones that would actually be used to move electrical current in a building or something like that. That steel is called silicon bushing. And to get a premium price from your yard, you generally need five to 10,000 pounds, and you should probably should be working with a yard that has a little bigger steel volume because when you go to sell them something like bushing, that's not a phrase that they're going to hear very often from scrappers. So you want to make sure that you know what you're talking about. And of course, if you have questions on the material, send us pictures through our social sites or [email protected]; we'll help you with that. Now inside of our scrap metal group, we had another question what hot water heater be worth much more money. How much would it be worth? I have to replace my heater. I'm wondering if the old ones worth anything to sell for scrap? Is anyone going to pick it up if I put it on the road, or is it just not worth it? So water heaters absolutely have value. The water heaters are generally going to go as a light iron now some scrap yards no my yard and run

Tom  5:00  
Rockaway, New Jersey, we're not heavy steel buyers. I don't mean heavy or light steel; just we don't do a lot of steel; we do more nonferrous here. So we would buy water heaters as a light iron, sometimes we buy them per piece. And that's because of the insulation that's inside of them. Now things that you do want to look for some of the older hot water heaters that are 25 years old, kind of built in the 1980s. Or earlier, believe it or not, they're still around, and they exist; they could have large copper heating coils inside, which are really good to take apart. Most of those units are generally blue on the outside, where your traditional hot water heater is an ugly white or an off-color gray. So that helps you learn a little more about that. Now, George Twist asked us about optical cable. Is it just trash? Now anytime you see the wire that has the word optical written on the side, you have a 99.99% chance that you're dealing with nothing but plastic. And telecommunications companies are able to move bandwidth for the internet through these optical lines. And a lot of phone companies are actually able to use them for their phone connections. But they look like wire. They taste like wire. They smell like wire, but they have no copper inside them. So it really is almost another fool's gold, if you will. So when you look at it, you definitely want to make sure that you read it because it says optical on it. You could have black, orange; orange is a really big one. You could also have it's a fiber optic. So the two different words that you really want to look out for the word fiber and the word optic or optical because that's going to really give you a good indication that you're dealing with plastic and they have no copper inside. Connie Key asked is copper going to drop. I told it was soon. So this was asked in May of 2021. And listen, if I knew what the markets were going to do moving forward, I would be doing this podcast from my own private booth on my own private island. But I'm not because I can't predict the future. I do think, though, that with the way that things are going politically, that we have a really strong chance of seeing copper staying strong for the next few months of 2021 and the next few years, especially if we have some infrastructure plans put into place if we have some further development in different cell phone services 6G also we have the electric vehicle market going on. So that could certainly lead to a massive demand for copper, and the supply would not be in a very good place. Another question from Buster Clover Hey Tom, do you foresee when scrappers are going to be required to have a local government permit to scrap? Will scrap yards have to report funds paid to scrappers for tax purposes? Will scrappers have to file taxes for their sales should scrappers from LLCs? Now we've taken this extremely tough topic to talk about, we've made it into a bunch of other podcasts as well as different articles online. So I'm going to try to make this a little easier. As of right now, I haven't heard of any scrapping permit in any of the 50 states. That's not to say that they won't come. But there have been restrictions on things like catalytic converter sales, where you have to have a copy of the title or sell the cat. I've heard about air conditioning units only been allowed to be sold.

Tom  8:29  
to scrap yards from HVAC vendors. But right now, I don't see that there's going to be any type of a scrapping permit. Now, long-term taxes. Well, listen, the government continues to print more money and raise the national debt in a way that we've never seen before. You know, for the last 80-90 years, the United States has had debt by just creating more money. So do I see scrap yards getting affected in the future with taxes for individuals? Unfortunately, the answer is yes. Because if you look at it from the side of a government point of view, a lot of the cash is not reported. And unfortunately, that's an area that they'll be able to go and target. Now it's going to be really complicated because what scrapper in their right mind is going to start giving out their social security numbers. And you have local federal state legislation that are going to work on these things, as well as different lobbyists trying to push away from this. Another question, hey, consistency to other scrap yards get give big or small customers better prices. So I might not bring in 1000 pounds at once. But if I bring in 1000 pounds a month, or excuse me 100 pounds a month over a year, will I get more money. Now at Rockaway Recycling, we do have tier prices for customers that are consistent sellers. So it gives us the ability to reward them for their loyalty and their consistency while giving us.

Tom  10:00  
large customers that might bring in 5000 or 6000 pounds of copper 5-10 cents extra pound because of the volume. And when you generally have volume, it gives you the ability to dictate your prices a little differently. So that's certainly something to think about. But working with a scrapyard consistently, we always recommend asking them before you ask them for more money; ask them for a printout of your last 3, 6, or 12 months of tickets, so you can show the consistency that you've had. And if you're able to really sort and separate your material really well, that's only a stronger point to help you make more money with your scrap.

Tom  10:41  
Travis Nichols asked, Why are copper prices in Kentucky lower than places like Texas and even in New Jersey? At the time that he wrote this in April, we saw Bare Bright at  $2.60 a pound, and we saw, on a national average, about 50-60 cents higher. So a couple of real quick answers that we've given many times number one, your scrap yard might not get aggressive, and they might keep their prices lower. So they have higher profits. It also could be a small yard that doesn't move material often and does not get strong prices. I know a few yards like this, where they always save 40,000 pounds of copper sell at one time. I know some yards that buy 40,000 pounds a week. I know some yards up by 40,000 pounds a month. I know some yards up by 40,000 pounds over three months, depending on their size. So pricing really relies on the size of the yard and really how aggressive they want to be if they're looking to grow, stay stagnant, or kind of stay, you know, in a lower position because they want those higher profit margins. So hopefully, that answers your question. Michael Lloyd says is it better to go to a small town scrap yard or scrap yard with multiple locations. And this again is a level of comfort and level material that you're selling.

Tom  12:00  
Smaller yards generally have that one-on-one approach. They know your name; they remember you you're dealing with the same two or three scale operators where larger yards you might be dealing with the same scale operators. But what you're not dealing with is the same owner of the company, you know, you have a company that as 6, 10, 15 yards, you're not going to really be able to reach out to the owner or upper management as easy as you would some of the smaller yards in our yard Rockaway Recycling. You know, we're locally owned; we only have one location as of 2021; who knows, going into the future. But we have really great relationship with our customers, and we want them to make more money with their scrap. So it gives us the ability to pay them a little more and be a little more aggressive in that manner. Now, scrappers, these are just some of the many questions that we get asked all of the time. If we answered a question that you didn't even know about just now. By all means, ask us more questions so we can continue to push the narrative to help you learn more about the industry. And by tuning into the iScrap App, whether it's becoming a supporter of Patreon getting more scrap tips. Whether you subscribe to our podcast through Spotify, through Apple, or wherever podcasts are broadcast by becoming a follower of all these different podcasts that we do, you don't hear me heavily advertising sure I'm going to talk about RRCats.com once in a while, but we really our goal is to help you make more money with your scrap. So if you have questions that you want us to answer that your scrap yard won't answer that people through our online forums haven't been able to successfully help you with. By all means, ask the questions. We're going to do more of these Q&A sessions moving forward. We love any type of criticism, good-bad, so we can grow from it so we can learn what you want. Learn what you don't want. But we love hearing the stories. We really love the questions. It gives us the ability to learn about what's going through your brain, and we love talking scrap so scrappers. This is Tom from the iScrap App. This is another episode of scrap you later. We look forward to seeing you next time. Don't forget, subscribe and follow our podcast today. Scrap you later!