scope:

The consumers of aluminum scrap can be placed in one of the following general groupings: Secondary aluminum producers, primary aluminum producers, non-integrated fabricators, foundries, and destructive users. Secondary aluminum producers smelt or refine scrap and dross and they consume more than half of all recycled aluminum scrap. Primary aluminum producers may either purchase scrap or may contract-fabricate returned scrap into mill products for their customers. They consume more than 25% of all recycled aluminum scrap. Non-integrated fabricators, foundries and destructive users combined account for approximately 20% of all scrap consumption.

Consumers must convert scrap into an aluminum ingot or mill product of prescribed chemical and mechanical properties. The value of aluminum scrap is directly related to the ease and efficiency with which it can be processed into a saleable product. The more costly it is to convert scrap, the less valuable the scrap is to the consumer.

Between those who produce and those who consume scrap is a network of dealers and brokers who collect, segregate, prepare and deliver commercially acceptable quantities of scrap. Scrap sales transactions can be either made directly with the scrap consumer or with this network.

Factors which most strongly affect scrap value are cleanliness (relatively free from contamination), segregation by alloy and type, packaging, and melt loss. When a consumer might lose as much as 15% of the scrap weight upon remelting, the value of the scrap is proportionally diminished. Although melt loss is principally controlled by the nature of the scrap itself and the melting techniques employed, it can be reduced with improved packaging and segregation by scrap type, assisting the consumer in reducing melt losses. Melt losses are increased by organic coatings or oils present and by other non-metallic contaminants such as dirt, sand, paper, plastic, etc. Since there are many parameters involved such as various melting techniques, types of scrap, scrap processing equipment (e.g. decoating equipment), etc, it is desirable to discuss the possibilities for increasing scrap value with your buyers.

Aside from the factors described in the previous paragraph which enhance the value to scrap consumers, well-packaged scrap can result in cost savings in the fabricator's plant through lower handling costs, reduced requirements for storage space, and improved housekeeping. Improved packaging and packing techniques can also reduce transportation costs.