In 2026, the copper recycling business has reached a fever pitch. With global copper prices frequently exceeding $13,000 per tonne due to the massive demand for EV infrastructure and AI data centers, copper is no longer just a base metal—it’s “Red Gold.”
Starting and running a copper recycling business in 2026 requires a mix of industrial grit and high-tech sorting. Here is the breakdown of the process and the business model.
1. The Sourcing Strategy (Urban Mining)
The most successful businesses in 2026 don’t wait for scrap to come to them; they go to the source.
- Industrial Partnerships: Securing contracts with manufacturing plants that produce “New Scrap” (offcuts and turnings). This is the highest purity and commands top dollar.
- Demolition & Construction: Partnering with firms to harvest copper piping and busbars from decommissioned buildings.
- E-Waste Streams: A booming niche. With a computer containing roughly 1.5kg of copper, specialized e-waste lines are now a core part of the business.
2. The Industrial Recycling Process
Recycling copper is remarkably efficient, using up to 85% less energy than mining virgin ore.
Step 1: Grading and Sorting
Copper is priced strictly by purity. In 2026, businesses use Handheld XRF Scanners to instantly identify alloys.
- Candy (No. 1 Copper): Clean, unalloyed copper wire or tubing.
- Berry/Candy (Bright & Shiny): Bare, uncoated, and unalloyed wire—the “gold standard.”
- Birch/Cliff (No. 2 Copper): Oxidized or coated wire, typically from old plumbing or unstripped cables.
Step 2: Mechanical Processing (Stripping & Granulation)
For copper wire, the goal is to remove the plastic insulation.
- Wire Strippers: Used for thick-gauge cables to keep the copper “Bright & Shiny.”
- Granulators: For thin, tangled “spaghetti” wires. These machines chop the wire into tiny pieces and use air tables to separate the heavy copper from the light plastic dust.
Step 3: Melting and Purification
The scrap is fed into a furnace (usually an Induction or Tilting furnace) heated to roughly 1,083°C.
- Fire Refining: Air is blown into the molten bath to oxidize impurities, which are then skimmed off as slag.
- Deoxidation: Phosphorus or other agents are added to remove oxygen, ensuring high electrical conductivity.
Step 4: Casting and Fabrication
The molten copper is cast into standard forms like ingots, cakes, or billets. These are then sold back to manufacturers to be rolled into new wire, pipes, or heat exchangers.
3. The 2026 Business Model
The business operates on the “spread”—the difference between the price paid to collectors and the price sold to refineries.
Financial Fundamentals
- Setup Costs: A small-scale collection business starts around $70,000 – $150,000, while a full-scale processing facility with granulators and furnaces can exceed $1.5 million.
- Margins: Profitability is highly sensitive to market volatility. Modern businesses use Hedging (financial contracts) to lock in prices and protect themselves from sudden market drops.
- Regulations: Strict “No Cash for Scrap” laws are now standard across most jurisdictions to prevent theft. Payments must be digital, and meticulous record-keeping of IDs is mandatory.
4. Why Copper is the “2026 Winner”
The “Energy Transition” is the primary driver. An internal combustion engine car uses about 23kg of copper; a 2026-model Electric Vehicle (EV) uses roughly 83kg. With millions of EVs hitting the road and solar farms expanding globally, the secondary (recycled) copper market is projected to grow at a CAGR of 7-10% through 2030.
Pro Tip: In 2026, the real money is in pre-sorting. A mixed load of scrap might be bought at a discount, but a “clean” load of stripped Millberry wire can be sold for nearly 95% of the LME (London Metal Exchange) spot price.