I thought a ton was 2,000 pounds?
Well, yes and no. We weigh and pay our scrap steel based on a Gross Ton, which is 2,240 pounds, and often referred to as a Long Ton. The ton we learn about in school is actually a Net Ton, and is in fact 2,000 pounds. This is also commonly referres to as a Short Ton. Then, there is also a Metric Ton – which is 2,204 pounds.
How do I convert Gross Tons to LBs?
Considering that a Gross Ton is 2,240 LBs to calculate how much our pricing is per pound, divide our current steel prices by 2240. For example, if our current Steel Shred price is $224 / Gross Ton, you would divide that by 2,240 to get .1 – or $0.10/LB. Also, you can take the number of pounds of steel you have, divide that by 2,240 to get how many Gross Tons your material weighs.
Why do you pay by the Gross Ton?
As all of our scrap steel eventually makes it’s way over to one of the various steel mills in the area, it’s easiest for us to handle all transactions in Gross Tons. It is an industry standard for all bulk steel weights be measured in Gross Tons, including all inbound purchases made by steel mills. Purchasing steel and establishing our pricing by the Net Ton, and then turning around and selling our materials by the Gross Ton would essentially create a clerical nightmare! It is the standard practice in our industry, and while it might take a bit getting used to after learning in school books a ton is 2,000 LB – it is a necessary aspect of our business.
Can I get a copy of this price list?
Honestly, our employees are never allowed to distribute price lists. It is a common practice for scrappers to try and obtain price lists, and then take them to other various yards in an effort to haggle better pricing. Because pricing can often change daily, there is no guarantee the price list you are being presented with in one of these attempts is current. We do make all of our current pricing readily available to all of our customers by calling into our automated phone system that has a current recording of all our current prices available 24 hours a day. Call us at (586) 465-8000 to hear what our current scrap metal pricing is today!
Am I going to get a 1099 from this?
Actually, not at all. As the current state and federal laws are, we are not required to report any income gained through scrap metal recycling to the IRS for tax purposes. It is the sole responsibility of each individual to include their income from scrap metal recycling into their own tax return. We can, however, provide detailed reports at any point for all customers to give you a detailed picture on how much money you have earned through scrap metal sales for any given period of time. Naturally, if legal requirements were to change, Basic Metals would immediately fall into place and adhere to any and all new applicable laws.