Blog>Trade>How to recycle scrap metal for the best price
Last updated: 3 January 2024
How to recycle scrap metal for the best price
This post will share how to recycle scrap metal for the best price. It will cover the rules and regs you need to be aware of before you convert your metal into money.
Recycling scrap metal will not only earn you some extra money, but it's also much better for the environment.
The energy it takes to recycle scrap metal vs using new materials is significant. Plus, recycling scrap metal for money reduces the volume of waste that goes to landfill.
In a world of increasingly climate-conscious people, disposing of scrap metal responsibly could help to give your business an edge. It's also just the right thing to do!
Find out more about how to reduce waste in construction.
Where can I recycle scrap metal for money?
To recycle scrap metal legally, head to a licensed scrap metal yard. Before visiting your local scrap yard, make sure your scrap metal is separate from non-metallic items. For example, plasterboard, wood, and aggregates.
Next, sort your scrap metal into:
Ferrous metals, e.g. iron and steel. Generally speaking, if it's magnetic, it's classed as ferrous
Non-ferrous metals, e.g. aluminium, copper, brass, household cable, lead, stainless steel, and zinc. Basically, everything that's not magnetic
Waste electricals, e.g. power tools
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Scrap metal rules and regulations
The Scrap Metal Dealers Act 2013 forces all scrap metal buyers to ask for proof of identity with a photo ID.
It's illegal to pay for scrap metal in cash. A scrap metal dealer can only pay for your scrap metal by electronic transfer or cheque.
What documents do you need to sell scrap metal?
To sell scrap metal at a scrap yard, you will need to:
Verify your identity with a photo ID, e.g. a driving licence or passport
Show proof of your residential address, e.g. a bank statement or utility bill
The Scrap Metal Dealers Act 2013 states that dealers must check your proof of address every three months. The simplest way to tick both boxes is to show your UK driving licence.
Some scrap yards can cash your payment cheque on-site. If you want to use this service, you'll need to take additional proof of address.
How much is scrap metal worth?
Metal is a commodity. Therefore, the price of scrap metal fluctuates with the worldwide markets.
Some metals will fluctuate in price more than others. To give an idea of the variance in the value of different metals:
Stainless steel solids were worth £0.90/kg in June 2023*
Heavy copper was worth £5.80/kg in June 2023*
Aluminium (rolled) was valued at £0.90/kg in June 2023*
(*Guide prices only based on Scrap Metal Price index)
To get the best price for your scrap metal, especially something such as copper, clean it up and make it as pure as possible. For example, remove any additional materials.
When you take your scrap metal to a dealer, they will grade and weigh it.
They will then calculate how much the scrap metal is worth based on the current market value.
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Quick summary
Recycling scrap metal is a great way to earn extra money and is better for the environment than using new materials
To sell scrap metal, you must go to a licensed scrap metal yard and show proof of ID and residential address
It's illegal to trade scrap metal for cash. A dealer must pay you via electronic transfer or cheque
Before disposing of scrap meta,l sort it into ferrous and non-ferrous materials
Your scrap metal will be graded and weighed, and you'll be given a price based on the current market value
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FAQs
What scrap metal is worth the most money?
The scrap metal that's currently worth the most money is Copper.
Is it legal to collect scrap metal?
To trade scrap metal you must, by law, have a licence from your local council. The Scrap Metal Dealers Act 2013 aims to clamp down on rogue traders. It also gives authorities new powers to inspect premises where they suspect illegal activity.
Under this act, scrap metal dealers must verify the name and address of the seller. They must also make payment via electronic transfer or cheque only - no cash.
Do you have to pay tax on scrap metal?
Yes. Just like any other form of income, you must pay tax on the scrap metal you sell.
