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What to do with 330Tons of Scrap Steel?

Discussion in 'Making Money' started by AffiliateNinja, Nov 3, 2009.

  1. AffiliateNinja

    AffiliateNinja Junior Member

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    alrite so i know this is off topic, but i have a project for school right now and it is a real problem a business is having. They manufacture parts for bulldozers and heavy duty equipment, and they are left with 330 tons of scrap steel every year, currently they sell it to a guy at about .09 cents a lb. but are still losing 250k on the offer.

    any ideas on what they can do?
     
  2. w84it

    w84it Regular Member

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    keep it for the next year. Melt and re-use haha idk shit bout steel btw
     
  3. niksanyl

    niksanyl Registered Member

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  4. twix70

    twix70 Regular Member

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    alas if only it was 331 tons I know someone who knows someone who met someone once who would pay millions! Still c'est la vie!:)
     
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  5. Nimrod

    Nimrod Newbie

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    <EDIT> Re-read post... never mind.

    How about making some sort of steely product with it that would naturally sell for more?
    No idea what though...
     
  6. weboozle

    weboozle Newbie

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    Interesting, yet odd.
    How would you lose 250k on scrap (junk) when you are offered 9 cents a lb.?
    Seems $.09/lb is an extremely generous offer...
     
  7. flexpaydude

    flexpaydude Regular Member

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    They should structure a deal w/ their steel provider to rebuy the scrap on an ongoing basis. As the steel provider delivers steel, have them ship back scrap, thus saving on transportation costs. In addition, the business would save on storage costs. I would imagine the steel provider could recycle the scrap.

    In such a competitive market, I'm sure the business could structure a competitive deal.
     
  8. DrJekyll

    DrJekyll Senior Member Premium Member

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    sell it direct to china thats where most of the recycled scrap is sold from the usa
     
  9. three3s

    three3s Regular Member

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    Yeah, India and China are the two big steel whores, they are chucking up that many buildings they need lots of it.

    The only thing with scrap metals is the price per ton fluctuates at a crazy rate. Around 6 months ago, a scrap car would go for around £180 where I live. Couple of weeks ago it was down to £30. It will go way up again but trying to track it is impossible.
     
  10. DrJekyll

    DrJekyll Senior Member Premium Member

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    In the usa cash 4 clunkers just flooded the scap steel market so i am sure the price is down right now.

    best bet is to find someone that can use it as is, and not have to go through all the shredding needed to export/transport
     
  11. 75020780

    75020780 BANNED BANNED

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    Make "art" or "furniture" out of it. There are many construction companies looking for alternative "green" ways to make things.
     
  12. theleadsource

    theleadsource BANNED BANNED

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    Advertise on Cl that you have the best junk steel available and send them to affiliate offers to qualify them.

    Seriously, this is not the forum to get that answer.
     
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  13. bigmoneyX

    bigmoneyX Registered Member

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    it's not worth much more than that if it's sold as scrap :-/

    look for ways to reduce the scrap if at all possible (optimizing cuts, etc)
     
  14. H2oBoy

    H2oBoy Regular Member

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    My $0.02....

    First off, you'll need to know as much about this 'scrap steel' that you can find, including:

    A. The LOWEST cost the current business is willing to accept for it.
    B. If they're willing to 'ship it' overseas possibly.

    Once you have that, do this:

    1. Head over to triple "w" <dot> alibaba <dot> com
    2. Click on the BUYERS tab.
    3. In the search box, type in SCRAP STEEL
    4. Go through the results and see if you can find a buyer for the type of scrap steel that is available.
    5. If there's any good candidates, create an account <fast & easy> and then contact them and let them know that you've got what they need.

    If you are able to find a potential buyer, keep the email to the point and just let them know that you saw their posting and that you might have exactly what they're looking for. Depending on where the potential buyer is located (USA, India, China, etc., etc,.) I would expect a response w/in about 2, maybe three days at the most.

    That being said though, you might want to contact as many potential buyers as possible, in order to increase your chances of finding the right buyer.

    Excess inventory management is much like affiliate marketing...you find what someone NEEDS/WANTS and give it to them! :)

    Once you've found a buyer, simply negotiate the 'deal' so the business w/the scrap metal gets a fair price, the buyer gets the steel for whatever price they're willing to pay and you make a few $1,000+/- in the process!

    Don't forget...someone's garbage is someone else's treasure! :)


    Hope this helps?

    H2oBoy