The Salvage Value of Metal Grain Bins

All metal has salvage value. Recycling yards always buy and sell various metals, such as copper, brass and steel. Metal grain bins are made of steel sheeting, which is a popular metal because of its low cost. Unfortunately, scrap steel does not rank high on a value list, since its so plentiful. You may end up paying more to transport the metal to the recycling yard than what they're willing to pay for the scrap steel.
  1. Prices Paid

    • The price paid by recycling yards for scrap metal steel sheet, also called sheet, varies per day. For example Iron Mike Scrap Metals Services, in Troy, Michigan, on July 18, 2011, paid $290 per gross ton for steel sheet. For mixed steel, Iron Mike paid $260 per gross ton. A gross ton is a metric ton, also called a long ton, which converts to 2,240 pounds. Dividing the price by poundage yields a rough price of about 12 cents a pound.

    Shopping Around

    • All recycling yards state they pay the highest prices for scrap. In reality, scrap prices are set by the forces of supply and demand. It depends on the world markets, and what the current price for producer new steel sells for. You can shop around to the local yards, to find out what their exact price is for that day. It may vary a little bit. If you have a large quantity, yards may pay a slightly higher price. Negotiate with several yards, and find out which yard can truly offer you the highest price.

    Transportation and Labor Costs

    • You have to pay to transport the steel from the dismantling site to the yard. Furthermore, you have to pay workers to dismantle the grain bins. Most trucking companies will give you a quote, based upon weight, distance and times. Calculate out the costs accurately. After receiving payment from the yard, you may discover the costs may exceed the price paid. Therefore, you are taking a loss. If the price paid at least covers the cost of transportation and labor, you broke even. The problem is scrap steel is simply not a high dollar commodity, like scrap copper.

    Alternative Uses

    • If you discover the costs exceed the scrap price paid, perhaps you can develop alternative uses for the steel sheeting. The sheeting is waterproof and fairly lightweight, so steel sheds are a possibility. Conversely, round steel sheds are a good way to use the dome caps off the tops of bins. If you just want to clear out the area, donating the steel to the local population so they can reuse it is another possibility.

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