Prince & Izant has developed unique scrap recovery programs that expedite the processing of precious metal containing scrap. Our streamlined system has afforded us the opportunity to work quickly and efficiently on customer-specific scrap and provide optimal working capital levels to meet every volume need.
Who generates scrap?
Manufacturing companies using bulk materials, such as wire, rod and strip generate the most scrap because the volume of alloy consumed is largely controlled by the brazing operator.
Scrap is normally generated in two ways:
Component Level - This happens either because the part no longer conforms to predetermined engineering design data or because the component has met its life expectancy in the field. This is commonly referred to as MTBF (meantime before overhaul) or TBO (time before overhaul), the latter is typically common the aerospace industry.
Scrap as Byproduct - While it doesn’t happen often, some companies do not consider the value attributed to scrap collection. It is treated as a production byproduct, only to be discarded in the trash as regular garbage.
Is my scrap worth recovering?
Factors that contribute to determining the economic viability of scrap recovery include:
- the ratio of precious metal to overall lot weight
- market value of metal to be recovered
- refining fees
Generally speaking, “clean” scrap, or scrap that is still in raw form, with a high precious metal content will yield the highest results.
Should production scrap be sorted?
This is primarily a function of volume, how much scrap exists and when payment is desired. In an effort to keep customers happy, P&I will pre-pay clean customer scrap upon verification of alloy. This verification step is straight forward when the scrap is separated by major alloy. This enables P&I to assess value with XRF technology and extrapolate value to the balance of the lot by weight.
When various alloys are mixed, XRF technology becomes less reliable as the distribution of the various precious alloys is unknown. Prepaying such shipments is not common, unless a long, well determined scrap relationships exits with well documented material with little precious metal deviation.
When can customers expect payment on scrap?
Clean and sorted scrap can usually be paid upon receipt and verification of weight and alloy. Longer mixed lots will take 6-8 weeks for final settlement.
Common types of scrap include:
Gold bearing electronic scrap
Process waste including wipes and syringes
Gold, Platinum and Palladium containing fuel system scrap
Unused braze alloy in the form of rings, rods, foil, preforms, paste and powder
Can scrap be used to offset future brazing alloy purchases?
Yes, once final settlement has been agreed upon, the scrap value can be applied to a customer’s account. Doing so effectively reduces the metal market in effect at time of purchase. This can create a negative purchase price variance, a common metric upon which procurement professionals are measured.
In order for scrap to be processed, The Prince & Izant Companies must have a completed W9 on file for your company. Click Here for the Ohio W9 Form or Click Here for the W-8ECI Form (for customers outside of the United States). When completed, please email the Ohio W9 Form or W-8ECI form to firstname.lastname@example.org