The Cold Hard Facts Every Seller Should Know
The scrap catalytic converter industry has become very competitive and technical.
There are thousands of different converters with wildly different metal contents. This creates an overwhelming task for anyone trying to accurately define the value of each individual converter.
Standard practice for buying and selling converters is to group them into different categories and then apply an average value for that category. As the market has become more competitive and profit margins shrink there has been an expansion of categories, subcategories and even down to individual unit OEM numbers.
This has created numerous deceptive practices where traders will try to alter the normal mixture of a category and sell the lower value material to someone who thinks they are buying a normal distribution.
Ultimately, the value of a catalyst lot is determined by the total metal content and the market price for the metals–less the cost of processing, refining, and financing. The total metal content is determined from the net tare weight and the analysis of a representative sample.
Most suppliers are tired of over aggressive buyers with high price sheets to later find that their overall return is poor.
Sellers have to be leery of buyers that will pay more than a load is worth in order to get their business–only to see prices drop dramatically for following loads or to see many units left that were downgraded or not counted at all.
A good buyer will help sellers understand the value of the units they are buying and selling so they feel they are in control of the process, avoiding any surprises.
Suppliers run honest businesses and should be treated fairly and their time respected.