The U.S. produces scrap metal in massive amounts. Just last year, the U.S. exported 18 million tons of iron and steel scrap — the highest it has been in 5 years. However millions of pounds of scrap just sit around as lost product and profit. Many companies are realizing the benefits of recycling their scrap metal. The following are some of the ways this type of recycling benefits the economy.

What Are the Economic Benefits of Scrap Metal Recycling?

1. Selling Scrap Metal

In the past, lost scrap metal meant lost profit. But today, it’s easy to sell your unused scrap metal to those who need it — the scrap yards. Call around to find the best price for the scraps you have. Depending on how much material you’re looking to sell, you might need the assistance of a crane. The yard will either compact the material or shred it into very fine pieces. Afterward, your scrap will be hauled to an offsite smelter to be fed to a blast furnace. This process allows the scrap to be recycled into any steel product.

2. Producing Items Cheaply

Selling unused scrap metal is economically beneficial to the company that buys it. Buying the scrap comes at a discounted cost, but the products that are made maintain their profit margins. Therefore, the producers are making a larger profit from using recycled materials. This allows the producer to mark competitive rates on their product by offering a lower price to consumers. When consumers can afford a product, they will buy more of it and continue to contribute to the economy.

3. Increasing Exports to Support Economic Trade

In 2018, the U.S. was able to export 18 million tons of iron and steel scrap because of metal scrap recycling. Instead of having the metal sitting in yards, it can easily be turned to profit. The U.S. imports more than it exports, which creates a trade deficit. But recycling scrap metal can contribute to the country’s wealth generation through exporting.

If you’re ready to send your scrap to a recycling facility, Phipps Auto Parts can help. Based in Clermont County, OH, this licensed recycling center will evaluate your scrap metal and determine its market price. They also help with sheet iron recycling and non-ferrous metal recycling. Call them at (513) 722-2034 or visit the website to learn more about their services