UK Scrap Metal Dealing is Scheduled for Radical Change

UK scrap metal dealing is supposedly worth about £5 billion per annum. However in actual fact this figure is hugely understated because of the amount of thieving and skulduggery that takes place within its auspices. But that is now all set to change, which is good news both for the economy, the industry itself, and the companies from whom the scrap metal is gathered.

UK Scrap Metal Dealing Cash Sales made Illegal
Up until recently it was permissible under law to sell scrap metal for cash. However as from the 3rd of December 2012, making cash payments has become illegal. In approximate figures, it is said that cash sales were responsible for some £1 billion worth of transactions.

The New 2012 UK Scrap Metal Dealing Bill
The banning of cash sales within the UK scrap metal dealing marketplace is the first in a number of changes that are being made to the 1964 Scrap Metal Dealers’ Act. A new bill, (the 2012 Scrap Metal Dealer’s Bill), has passed through the Commons, and went to the Lords on the 30th November 2012. It is expected to be completed, approved, and to become part of legislature towards the end of February 2013.

Value UK Scrap Metal Dealing Expected to Soar
It is thought that the banning of cash sales for scrap metal, and the planned tightening of future sales by electronic auditing will have a significant effect on the UK scrap metal dealing industry. In addition, the strengthening of police powers to enable them to crack down on any illegal deals made by both registered and non-registered scrap metal merchants, should bring an much tighter degree of control to scrap metal transactions

Theft in the UK Scrap Metal Dealing Industry will Plummet
The banning of cash sales will also help to stop the hitherto fraudulent behaviour of trusted members of staff. Staff who themselves pocket the money made through the sale of their employers scrap metal. It has been estimated that a further £1 billion per year has been misappropriated through this type of scrap metal theft. It is also an accepted fact that many such dealings have been swept under the carpet. Therefore the figure of £1 billion lost to the UK scrap metal dealing industry through theft, was almost certainly only the tip of a much larger iceberg.

Scrap Metal to Become a More Important Commodity
Many engineering companies don’t actually fully appreciate the value of the scrap metal that their machining operations produce. But as the new regulations begin to bite, the value of quality scrap metal will begin to rise, making that scrap a much more important commodity.

Grading of Scrap Metal will Benefit both Engineering and Scrap Metal Industries
Scrap metal merchants will be encouraging the producers of the scrap metal to segregate their scrap by type and grade. They will do this by offering containers to their clients into which the various metals can be collected. Top graded scrap metals attract higher prices. Therefore the producers of scrap will ensure better segregation in order to maximise scrap values of top grades which were previously contaminated by the inclusion of poorer grades. The electronic invoicing system being brought into the UK scrap metal dealing industry will further promote this sort of segregated grading.

Some metals have a really high scrap value. Take Carbide for example. Many large engineering businesses spend millions of pounds per annum on new Carbide tips. By the same token those same companies are guilty of failing to realise how much value there is in recycling their scrap tips. These measures will bring home just how much value can be recovered through the sale of those scrap Carbide tips.