There’s no doubt about it – the world is in dire need of recycling. Not only does recycled material help to reduce the amount of waste going into landfills, but it also helps to conserve natural resources. For businesses looking to get into the scrap metal recycling business, there are a few things to keep in mind.

In this blog post, we’ll provide you with a guide on everything you need to know before starting up your business. From zoning laws to pricing models, take everything you need to know in order to make the jump into recycling.

What is a scrap metal Recycling Business?

A scrap metal recycling business can be a great way to make money and help the environment. It’s also relatively simple to start up, as long as you have the right equipment and know-how. Here are some tips on how to get started:

  • Get a permit. Before you do anything, make sure you get a permit from your local authorities. This is important both for safety reasons (you won’t want to be fined if something goes wrong) and because you need a license to operate in most cases.
  • Choose a location. Your scrap metal recycling business will need a place to store all of the metal it collects. You can either set up a shop at an existing location or construct your own facility.
  • Get the right equipment. In order to properly recycle metals, you’ll need specialized equipment, including an electric arc furnace, gas furnace, slag house, and water jetting system for processing ferrous materials such as iron and steel (see Resources below for more information). Make sure you have enough space for all of this gear and hire someone to help manage it all while you focus on running your business.
  • Get organized. Keep everything organized and trackable by setting up standard operating procedures (SOPs) early on in your business journey. This will help ensure that everything runs smoothly day-to-day and that you always know what needs to be done in order to keep things running.

The benefits of starting a scrap metal recycling business

If you are thinking of starting a scrap metal recycling business, there are many reasons to consider it. Here are just a few:

You can make a lot of money.

According to the EPA, scrap metal prices have increased by an average of 20% each year since 2004. This means that scrap metal recycling can be extremely profitable if you do it correctly.

You can help protect the environment.

Scrap metal is made up of valuable materials like copper, aluminum, and brass that can be recycled and turned into new products. By recycling these materials, you’re helping to reduce the amount of waste that needs to be disposed of in landfills.

The steps to starting a scrap metal recycling business

There are three essential steps to starting a scrap metal recycling business: acquiring the necessary licenses, sorting and pricing your recyclable metals, and hauling your materials to the collection center.


To start a scrap metal recycling business in the United States, you’ll need a Federal Occupational Safety and Health Administration (OSHA) General Industry Safety and Health Regulations (GHS) license. To operate a small business with less than $500,000 in annual sales, you can also apply for a Small Business Administration (SBA) 7(a) loan. Many states also have their own regulations governing scrap metal collections and processing. Make sure to research your state’s requirements before starting your business.

Sorting and Pricing Your Metal Recycling:

After you’ve acquired your licenses and sorted your recyclable metals, it’s time to price them according to weight and measure. This will help you determine how much material you can expect to generate each year. In addition, it’s important to set prices that are fair based on the value of the metal content. You can use online calculators or consulting services to help determine an accurate price point for your material.

Hauling Your Material To The Collection Center:

Once you’ve created pricing schedules and determined how much material you’ll be able to manage each year, it’s time to truck it all over to the collection center! There are many options for transporting.

What should you do first when starting a scrap metal recycling business?

When starting a scrap metal recycling business, there are a few things you should do first. You’ll need to determine what type of business you want to operate, identify the necessary resources and equipment, and develop marketing and financial plans.

Once you have all of this information, you can get started by researching potential customers. Start by contacting local businesses that produce or use materials made with metal as part of their operations. You can also reach out to associations or trade shows that focus on the scrap metals industry in your area. Once you have a list of potential customers, start developing relationships with them and make sure to keep them updated on your scrap metal recycling business developments.

Once you’ve established a relationship with your target market, it’s time to get started with the actual scrap metal recycling process. This involves sorting and separating recyclable materials from non-recyclable materials using appropriate screening methods. It’s also essential to establish pricing policies for your service so that you can cover costs associated with running your business while still making a profit. Finally, it’s important to monitor both financial and operational performance indicators so that you can make adjustments as needed in order to ensure long-term success.

How to get started in the scrap metal recycling business?

If you’re interested in starting a scrap metal recycling business, there are a few things you need to do first. You will need to assess the amount of scrap metal that is available to be recycled, get a license from your local government and register with the National Lead and Copper Association (NLCA). Once you have these basics down, it’s time to start sorting your scrap metal into appropriate categories.

Some common scrap metal categories are electronics, appliances, construction materials, automotive parts, and tin cans. After categorizing your scrap metal, you will need to determine what type of processing facility you will use to recycle it. There are several options available for recycling scrap metal, including manual sorting and automated sorting machines. Once you have chosen the type of processing facility and determined the necessary equipment for recycling your scrap metal, it’s time to get started.

Tips for running a successful scrap metal recycling business

There are a few things you need to keep in mind if you want to run a successful scrap metal recycling business. First and foremost, make sure you have a good understanding of the regulations governing this industry. Second, make sure your facility is up to code and meets all the necessary safety requirements. Finally, be proactive in marketing your business and spreading the word about how much money you can make recycling scrap metal.

  1. Know Your Regulations: Scrap metal recycling is a regulated industry, and it’s important to know what rules apply to your operation. Make sure you’re familiar with any restrictions that may be in place, including size limits on materials you can recycle, requirements for storage facilities, and more.
  2. Keep Your Facility Up to Code: It’s not just the law that matters when it comes to running a safe scrap metal recycling business; your facility must also meet all the necessary safety standards as well. Make sure everything from your ventilation systems to your hazardous materials handling procedures are up to par.
  3. Promote Your Business: The best way to ensure success in this field is by promoting yourself as much as possible. Make use of social media platforms like Facebook and Twitter to reach out to potential customers, and consider creating a website for more information about your business.
  4. Get Organized: One of the key elements to running a successful scrap metal recycling business is being organized and keeping track of everything from customer records to inventory levels. Use software


If you’re interested in starting a scrap metal recycling business, read our guide to learn everything you need to know. By following these simple tips, you can get your business up and running with minimal effort. For more information on scrap metal recycling, be sure to check out our website or speak with one of our experts today.

Frequently Asked Questions

What is the process of starting a scrap metal recycling business?

There is no one-size-fits-all answer to this question, as the process of starting a scrap metal recycling business will vary depending on the size and scope of your operation. However, broadly speaking, the process of starting a scrap metal recycling business can be broken down into three stages: planning, organizing and operating.

  1. Planning: In order to establish a successful scrap metal recycling business, it is important to first plan what you want to achieve. This includes understanding your market potential and calculating the necessary investment requirements.
  2. Organizing: Once you have determined your goals and researched your market potential, it is time to organize your business around these findings. This entails creating a comprehensive business plan and establishing systems and procedures for managing your operations.
  3. Operating: Last but not least, in order to successfully operate a scrap metal recycling business you must continuously maintain high standards of quality and productivity in order to remain competitive.

Miles Jaxon
I am a wordpress developer, who has been programming for over 8 years. i have expertise in php, javascript, html and css. in addition to this, i also know seo and technical seo as well as how to make your website rank on google’s first page of search results.