How Difficult Will It Be to Start A Metal Trading Business from Scratch

If you are planning to begin metal trading, but do not know how then it is essential to know where to begin. Additionally, beginning any business from the scratch may be difficult, but at the same time if you are aware about the steps to take then things become a bit better. Let us learn all about how to take these steps and what all is involved.

To begin with you need to first decide what kind of metal would you deal with for recycling. There are precious metals, cheap metals and those that are popular metals. Choosing metals for recycling is essential as each metal requires different technique, resources and methods along with different investment amount.

Deciding on recycling technique

Recycling techniques are different kinds based on the kind of metals that you choose to recycle, these are as follows:

The first stage involves segregation.

• cleaning
• refining
• melting
• giving shape
• cooling
• refining and polishing

it is essential to note that recycling methods will decide the rate at which you will be able to sell the recycled product. It is all about how many techniques of recycling you can employ for meals. If you employ all the techniques then you may fetch a better amount of money on resale of the metal as opposed to a half-finished product.

Things you require for recycling business

• You need a recycling plant and a big space to accommodate it like a factory as it is more of a heavy metals job.

• Your infrastructure need should be inclusive of a big facility that is capable of housing recycling plant, sorting space, storage space and cleaning plant. It should be as per factory standards complete with safety procedures.
v • Your resources should include scrap pickers, sellers, owners of dumping ground and the network into metal trade including wholesalers of scrap metal.

• Equipment that you required for your business should include recycling containers, heating tools, refiners, grinders, compressors and magnets.

• Man power is something that is still required for operating these machines, and for metal transportation and for handling other jobs like these.

• Utilities like water supply, transportation system, power connection are essential.

• For setting up your business you need to seek permission and prepare documents required by the authorities that will grant your permissions for running scrap metal business. Clearance related to environment and pollution clearance is required too. Registration of business with proper tax number and services is essential for smooth running of business. • Capital investment of at least 5 lakhs is required for purchasing of infrastructure and machinery. If you are choosing to opt for latest technology then the capital investment would go up by 20 lakhs as per your requirement.

• The cost of capital input may go up as per the requirement of labours and other inputs like quality plants, quantity of transport vehicles, infrastructure requirement and need of rented or purchased space for factory set up.

Recycling business may seem difficult, however, it is advisable that you begin by working alongside with a reputable company or a dealer who has been in this business from decades.



His business approach is backed by building environmental awareness throughout the company. To ensure this regular seminars, workshops and training modules are organized for creating environmental awareness and utilizing technologies that are pro-environment. The research and development activities are dedicated towards finding means of making the processes and services more efficient and environment friendly.