The Australian scrap market underpins a circular metals economy worth more than $4.2 billion a year. Whether you run a demolition firm, a fab-shop or simply want to monetise leftover copper cable, understanding grades, pricing levers and recycling science is the fastest route to profit. This guide explains how the What Is Scrap Trade system works, where to Sell Scrap and why every tonne you recycle matters.
How the scrap market works
Prices move daily, driven by global exchanges, container-shipping rates and domestic mill demand. Most dealers buy against the London Metal Exchange minus a discount based on contamination, freight and yard overheads. Knowing your exact grade before you haul scrap to the yard can add $50–$200 per tonne to your return.
Key grades and current spreads
- HMS 1/2 (heavy melting steel): Clean structural steel ≥6 mm thick, typically fetching $280–$330 delivered. Track the scrap steel market for weekly swings.
- Candy / #1 Copper: Bare, unalloyed wire >99.9% Cu, priced $9.20–$10.10 per kg.
- Ali extrusion 6063: Clean window frames, siding, worth $1.90–$2.30 per kg.
- Stainless 304 solids: Solids turnings, clips at $1.60–$2.00 per kg depending on Ni content.
Always separate ferrous from non-ferrous, remove plastic, wood and excessive oil. A 5-minute sort can double the per-kg rate the yard pays you.
Recycling process & environmental wins
Once metal is weighed and graded, shredders reduce it to fist-size pieces. Magnets pull out ferrous fractions while eddy-current separators eject non-ferrous metals. Finally, furnaces remelt the material into billet or slab, ready for rolling mills. Recycling aluminium requires only 5% of the energy needed to mine bauxite, while each tonne of recycled steel keeps 1.4 tonnes of iron ore in the ground and prevents 1.9 tonnes of CO₂. Explore the full scrap metal recycling market to see how these numbers translate into carbon credits.
Trading tips to maximise profit
1. Batch clean loads: Dealers pay a premium for single-grade deliveries because they skip sorting fees.
2. Watch export parity: When the AUD weakens, exporters lift domestic prices to fill containers.
3. Negotiate weighbridge tickets: Bring your own printout or photo evidence of weight to avoid under-scales.
4. Build relationships: Regular suppliers often receive advance payments or floor-price contracts during downturns.
Publicly listed data and dealer apps now let small sellers track the same indicators the big traders use. Compare live bids on Scrap and the specialist Australian platform ScrapTrade.com.au before you lock in any deal.
Remember, the scrap market rewards knowledge and preparation. Sort correctly, time your delivery and you will consistently beat the published gate price while keeping valuable resources circulating in the economy.
Frequently Asked Questions
What is the scrap market?
It’s the network of yards, brokers and mills that buy, process and remelt discarded metal, setting prices by grade and global demand.
How do I get the best price for scrap?
Clean and separate metals, remove non-metallic attachments, weigh your load, then compare bids on ScrapTrade.com.au before delivery.
Is recycling metal really better for the planet?
Yes—recycling aluminium saves 95% of the energy versus mining, and every tonne of recycled steel cuts 1.9 tonnes of CO₂ emissions.
Are scrap prices fixed or negotiable?
Daily base prices move with exchanges, but yard margins are negotiable; clean single-grade loads and regular volume earn higher premiums.
