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Scrap Metal Recycling Cycle

The scrap metal recycling industry is very specialized and requires a management team proficient in metallurgy, engineering and international trading. The key players in the recycling process are the Processors, the Processors’ Agent, Brokers, and Consumers.

Scrap Recycling Cycle

Processors buy scrap from sources such as corporate institutions, engineering plants, demolition sites and shipyards. They then prepare the scrap metal for reuse by engaging techniques like torching, baling, cutting and shredding. They play a very important role in the Scrap metal Recycling Cycle.

Processors’ Agents play a supporting role to the Processors. They collect and sell the scrap metal in their respective grades to the Processors.

Brokers serve as the intermediaries between the Processors and the Industrial Consumers (or in other words, users of scrap). They play an important role by bringing the Processors and Industrial Consumers together in the scrap recycling market. Brokers help the Processors find demand as well as locate new markets for the Processors’ prepared scrap. Another role played by Brokers is to assist the Industrial Consumers locate a supply of the scrap they need to facilitate their manufacturing operations.

Industrial Consumers are the mills and foundries that buy the processed scrap. They bring the recycling cycle to its final stage when they remelt the processed scrap and manufacture a new metal product from it. The scrap metal recycling process comes to its end in this cycle when the new product is returned to the market place.

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