You might have heard that you can make money by selling scrap metal. Is it a legitimate way to earn money on the side and worth venturing into? If it is a legitimate side hustle, how does it work?
There are various ways to make money from selling scrap metal. Some construction workers will take home excess metal from work and sell it to junkyards for extra cash. The only hitch is you need to know what types of metal to look for and how to sell them.
What is the earning potential in the scrap metal industry?
Because of scrap metal prices in Canada, the average earning potential in the scrap metal business is $34,125 annually. That equates to about $17.50 if you count it by the hour. At entry level, you can earn about $29,640 per year, and the majority of experienced earners can make around $46,527 per year.
What are the Types of Metal Viable for Selling?
Various types of scrap metal have different values that can translate to profit. The two most basic scrap metal classifications are ferrous and non-ferrous.
Ferrous Metals
Metals that fall under the ferrous metal classification are the most commonly recycled. The definition of ferrous metals is any metal that contains iron. This type of metal is sought after for its durability and tensile strength. That is why people use ferrous metals for industrial containers, constructing houses, and large-scale piping.
The most straightforward way to tell ferrous and non-ferrous metals apart is that all ferrous metals are magnetic. That is due to the amounts of iron contained in ferrous metals. However, that does not mean that all non-ferrous metals are non-magnetic. The common exceptions to this rule are nickel and cobalt.
The most common items where you can find ferrous metals include:
- Cars
- Ovens
- Refrigerators
- Cast iron pans and skillets
- Water heaters
- Stoves
- Air conditioners
- Radiators
- Pipes
- Wires
Ferrous metals also contain high amounts of carbon content. That is what usually makes these metals prone to corrosion or rust, which is why they are going obsolete.
When it comes to ferrous metals you can sell, you can find them in something as mundane as home appliances. These viable scraps can come from old or broken appliances like stoves, refrigerators, and washing machines, to name a few.
On a larger scale, cars, tractors, and other similar vehicles fall into the category of viable ferrous metals for selling.
Non-Ferrous Metals
While ferrous metals contain iron in their chemical composition, non-ferrous materials do not include this element. That is why most non-ferrous metals are non-magnetic, with the exception of metals like cobalt and nickel.
Because of the absence of iron, Non-ferrous metals are more resistant to corrosion and rust compared to ferrous metals. This fact contributes to why they are ideal for structures that go through constant exposure to water and electricity. Examples of non-ferrous metals used in facilities include copper in electrical grids and aluminum in gutters.
Copper is ideal for electrical wires because it conducts electricity more effectively than iron. Aluminum is the perfect metal for gutters because it has better resistance to rust and corrosion than iron.
Non-ferrous metals are also more lightweight and malleable than ferrous metals. That makes these metals the perfect choice for construction aircraft. Non-ferrous metals can come in base metals and precious metals for as long as they do not contain iron.
Base metals are inexpensive and lean more toward practical applications as opposed to decorative uses. These applications include construction, currency, and manufacturing. Examples of base metals include:
- Lead
- Copper
- Aluminum
- Nickel
- Zinc
Precious metals are most commonly used in jewelry making and practical applications like fiber optics and smartphones. Examples of precious metals include:
- Silver
- Gold
- Platinum
- Titanium
How valuable are non-ferrous metals in Canada? According to statistics, manufacturing revenues for non-ferrous metals, excluding aluminum, reached $17.7 billion in 2019. That was a slight increase of 1.2% compared to $17.5 billion since the year before.
The same report showed that the total revenue (including other non-manufacturing activities) in 2019 was $18.1 billion. That was another increase from the previous year’s $17.9 billion. Finally, the net revenues in 2019 were $1.13 billion, which was an 8% increase from $1.04 billion in 2018.
All Scrap Metal is Viable for Selling
To answer the previous question, all forms of metal have a viable sell value because of their versatility and malleability. What determines the price ultimately boils down to the weight, the kind of metal, and its purity. By following this guide, you should have a good starting point for selling your scrap metal.
