Ever wondered why your local scrap yard pays a different price than the “copper price” you saw online? There is no mystery — scrap prices follow a clear chain from global metal exchanges down to your local yard. This guide explains how that chain works, what moves prices up and down, and how to get a fair deal. No price figures here — for current numbers, see our indicative scrap metal price list.
From Exchange to Scrap Yard: The Price Chain
It starts at the top with global exchanges:
- Exchange spot prices — The London Metal Exchange (LME) and COMEX (New York) set benchmark prices for pure metals like copper, aluminum, and steel feedstock. These prices move throughout every trading day.
- Regional premiums and discounts — The exchange price is adjusted for your region: local supply and demand, warehouse stocks, and delivery costs shift it up or down.
- Mill and refinery buying prices — Big buyers (smelters, mills) buy scrap in bulk at a discount to the exchange price, since they still have to process it.
- Your local yard’s price — The scrap yard buys from you at a further discount. That gap covers their transport, sorting, processing, and operating margin.
So when you see an exchange price online, remember: it is the price of pure, exchange-grade metal — not the price of a bucket of mixed scrap at your local yard.
Why Yard Prices Are Lower Than Exchange Prices
A yard typically pays somewhere around 70–90% of the exchange spot price for top grades like bare bright copper (less for lower grades). The difference is not profit alone — it covers:
- Transporting scrap from the yard to mills and smelters
- Sorting, cleaning, baling, and processing the material
- Testing and grading each load
- The yard’s operating costs and margin
- Price risk — the yard holds metal that could lose value before it is resold
What Makes Your Price Go Up or Down
| Factor | How it affects your price |
|---|---|
| Metal grade and purity | The biggest factor. Clean, separated grades (bare bright copper, clean aluminum extrusions) pay far more than mixed or dirty loads. |
| Contamination | Paint, solder, plastic, steel attachments, or mixed metals get your load downgraded to a cheaper category. |
| Quantity | Larger, regular loads often earn slightly better rates — yards prefer reliable suppliers. |
| Local demand | If nearby mills are buying heavily, yards compete for scrap and prices rise. In a slowdown, they fall. |
| Transport costs | Yards far from mills and ports pay less — freight eats the margin. Prices vary by region for this reason. |
| Market volatility | Exchange prices move daily on economic news, currency shifts, and supply disruptions — yard prices follow, usually with a short lag. |
Why Prices Change Every Day
Because the exchanges never sleep (on trading days). Copper, aluminum, and other metals are traded globally, so economic reports, mine disruptions, tariffs, currency moves, and even weather can shift the spot price within hours. Yards update their buying prices daily or weekly to keep up — which is why calling ahead always beats relying on last week’s numbers.
Tips to Get Better Prices
- Sort by grade — never mix top grades with lower ones; one piece of #2 copper can downgrade a whole batch of bare bright.
- Clean your scrap — strip insulation where worthwhile, remove steel screws and plastic attachments.
- Know your grades — learn what bare bright, #1, #2, extrusions, and prepared steel mean so you can check the yard’s grading. See our per-metal guides: copper, aluminum, steel.
- Call 2–3 yards — prices genuinely differ between yards in the same area.
- Watch the trend — if exchange prices are climbing, waiting a few days can pay off; if falling, sell sooner. (General guidance, not financial advice.)
- Build a relationship — regular sellers often get steadier, fairer pricing.
Our Price Methodology
The prices published on MetalsWiki are indicative US scrap-yard buying prices — what a typical American scrap yard pays walk-in sellers — not COMEX or LME exchange prices. They are updated regularly, vary by yard, grade, quantity, and location, and should always be confirmed locally before selling. See the full list: current scrap metal prices.
Frequently Asked Questions
Why does my yard pay less than the price I saw online?
Online prices are usually exchange spot prices for pure metal. Your yard pays a discounted scrap price that covers transport, processing, and their margin — typically around 70–90% of spot for top copper grades, less for lower grades.
How often do scrap prices change?
Yards usually update buying prices daily or weekly, following the exchanges. Always call ahead — yesterday’s price is not a promise.
Do all scrap yards pay the same?
No. Prices vary between yards based on their buyers, transport costs, volume, and how they grade material. Calling around is the simplest way to get more.
Should I wait for prices to go up?
Prices move both ways and nobody can predict them reliably. If you need the cash or the trend is falling, sell. Holding scrap for months hoping for a spike is speculation, not a strategy.
What is the difference between LME and COMEX prices?
Both are benchmark exchanges — LME (London) is the global reference for industrial metals, COMEX (New York) is widely quoted in the US. Your yard’s price is derived from these benchmarks minus processing and margin.
Why did the yard downgrade my load?
Usually contamination or mixed grades — paint, solder, attachments, or different metals mixed together. Sorted, clean loads are graded (and paid) higher.
