Recycling, Gathering, and Selling Scrap Aluminum
Aluminum is produced from bauxite, a naturally occurring clay-like ore which is the most common element in the earth’s crust. Five tons of this ore is required to produce one ton of aluminum. Significant energy is required for this process, including mining, ore crushing and transporting of the ore to the refinery. Once at the alumina processing refinery, energy is needed for grinding the ore and heating and dissolving aluminum oxide. The raw alumina is then washed, filtered and cooled, heated again to dry, then transported to ports for shipping.
Ninety-five percent of the energy required to turn bauxite ore into aluminum is saved when recycling aluminum instead of processing it from raw materials, meaning about seven kWh are saved per pound recycled. The amount of energy saved to produce an aluminum can run a television for three hours. The amount of energy saved by recycling aluminum cans in the United States per year is equivalent to approximately 15 million barrels of oil, which at today’s prices equates to $1.1 billion.
About a half of aluminum cans are recycled today in the United States. These cans or used beverage containers (UBCs) can be deposited generally at the curbside or a community drop-off center. Form there, the material goes to a facility where workers separate aluminum cans from other food and beverage containers. This facility or scrap dealer can then bale the cans and sell them to interested buyers like a can sheet manufacturer who melts the scrap into sheets and sells them back to the beverage industry.
Selling Scrap Aluminum
The cost of acquiring new aluminum opens up the market for selling scrap aluminum. Aluminum cans make up the largest part of the scrap market, but different buyers of aluminum scrap are plentiful. The automotive industry makes up the second largest portion of buyers, especially as oil prices are high and light weight metal is in demand. Other selling opportunities exist to the construction industry, electrical needs, and machinery and equipment.
The price one gets for selling scrap aluminum is tied with the primary aluminum market of which is being extracted from bauxite ore, and which both are determined by the global demand for aluminum finished products. (Check the nearest month contract price on the homepage. Cash price generally a few cents less than the contract price)
Other effects on prices for scrap are the conditions. Cleaning and sorting and the scrap can have a significant impact on the price people will pay for it. Keeping it free of fluids and knowing the grade, weight, and value of the scrap will help when finding a good price.