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In early 2026, the scrap metal industry in Melbourne has moved from a traditional “junk” trade to a sophisticated, high-demand pillar of the Victorian economy.¹ With scrap metal prices for materials like copper and aluminum reaching near-record highs, the city is experiencing a “gold rush” of recycled materials.

Several unique local and global factors have converged to make Melbourne the current epicenter of the Australian scrap metal boom.

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1. Infrastructure and Construction Surges²

Melbourne is currently undergoing some of the most significant infrastructure expansions in its history. Major projects—including rail loop expansions, smart city upgrades, and large-scale residential developments—rely heavily on steel and aluminum.³

• The “Circular” Requirement: Modern Victorian government tenders now often mandate the use of recycled content. This has turned scrap yards into essential suppliers for the construction industry, rather than just waste collectors.
• Demolition Volume: Increased urban renewal in the CBD and inner suburbs has created a massive supply of “clean” industrial scrap (rebar, structural beams, and piping), which is the most profitable for recyclers.

2. The Green Energy Transition & EV Boom

The global push for electrification has made Melbourne’s scrap yards more valuable than ever.

• Copper Demand: Electric vehicles (EVs) and renewable energy grids require significantly more copper than traditional systems.⁴ As of January 2026, copper is a “hero” metal, often fetching between $9.50 – $11.00 per kg in Melbourne.⁵
• E-Waste & Batteries: Melbourne has become a hub for processing end-of-life EV batteries and electronic waste.⁶ Facilities are now using specialized AI-driven sorting to extract rare earth elements, lithium, and cobalt, which were previously lost to landfills.

3. Strict Export Regulations

The Federal Government’s restrictions on exporting unprocessed scrap have forced a shift toward domestic processing.⁷

• Local Value Addition: Instead of shipping raw waste offshore, Melbourne businesses are now investing in advanced shredders and separators. This keeps the profit within Victoria and ensures a steady supply of “furnace-ready” metal for Australian manufacturers like BlueScope Steel.
• Job Creation: This policy has led to a spike in local employment within the recycling sector, from logistics to materials science.⁸

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Current Market Rates in Melbourne (Jan 2026)

Prices fluctuate daily based on the London Metal Exchange (LME), but current estimates for the Melbourne market are:

Metal Type	Price per Kilogram (Approx. AUD)
Copper (Clean/No. 1)	$10.00 – $11.50
Brass	$6.00 – $7.00
Aluminium	$1.50 – $2.00
Stainless Steel	$1.80 – $2.30
Steel (Heavy)9	$0.25 – $0.3510

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4. Technological Innovation in Sorting

The “peak” in the business is also driven by efficiency. Melbourne scrap yards are no longer just piles of rust; many now employ:

• XRF Analyzers: Handheld devices that instantly identify the chemical composition of an alloy, ensuring sellers get paid the exact value for high-grade materials.
• AI Sorting: Automated systems that use computer vision to separate non-ferrous metals from bulk waste at speeds impossible for human laborers.

5. Environmental Policy: ReWaste 2030

The Victorian Government’s “ReWaste 2030” initiative has placed heavy levies on landfills.¹¹ It is now significantly cheaper for a business to recycle metal than to throw it away. Combined with government grants for “green” businesses, the financial incentive to participate in the scrap economy has never been higher.

Pro Tip for Sellers: To maximize your return in the current Melbourne market, always separate your “Non-Ferrous” (non-magnetic, like copper/brass) from “Ferrous” (magnetic, like steel) metals before heading to the yard.¹² Clean, sorted loads consistently command 15-20% higher prices.

When an old refrigerator or washing machine finally gives up the ghost, it often becomes a heavy, space-consuming eyesore. However, that “junk” is actually a concentrated source of valuable raw materials.

By selling your old appliances for scrap, you aren’t just decluttering; you’re participating in a circular economy that rewards you with cash while saving metals from landfills. Here is how to maximize your return on old appliances in 2026.

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1. Identify the High-Value Targets

Not all appliances are created equal. The payout depends on the weight of the metal and the presence of “non-ferrous” metals (metals that aren’t magnetic, like copper and aluminum), which fetch much higher prices than standard steel.

Appliance	Key Valuable Components
Air Conditioners	Copper coils, aluminum fins, and heavy compressors. These are often the “gold mine” of appliance scrapping.
Refrigerators	Large steel casings and copper-rich compressors.
Washing Machines	Heavy steel frames and large electric motors containing copper windings.
Dishwashers	Stainless steel tubs (in high-end models) and brass valves/fittings.
Water Heaters	Large steel tanks and high-grade copper or brass plumbing connections.

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2. Know the 2026 Market Trends

Metal prices fluctuate daily based on global demand. As of early 2026, copper remains a top performer due to its necessity in green energy tech.

• Ferrous vs. Non-Ferrous: Use a simple kitchen magnet to test your metal. If the magnet sticks, it’s ferrous (iron/steel) and worth less. If it doesn’t stick, it’s non-ferrous (copper, aluminum, brass) and worth significantly more.
• The “Clean” Premium: Scrap yards pay more for “clean” metal. For example, if you take the time to strip the plastic insulation off copper wiring or remove the steel casing from an aluminum radiator, you can often double your price per pound.

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3. Choose Your Selling Strategy

Depending on your tools and transportation, you have three main ways to sell:

A. Local Scrap Yards (Highest Profit)

If you have a truck, hauling the items yourself to a scrap yard usually yields the most cash.

Pro Tip: Call ahead to multiple yards. Prices can vary by 10–20% between competitors in the same city.

B. “Kabadwala” or Mobile Pick-up Services

In many regions, digital “scrap-on-demand” services have become popular. Apps allow you to schedule a pickup where a professional comes to your door, weighs the items with digital scales, and pays you via digital wallet or cash. This is the most convenient option for those without a way to transport heavy machines.

C. Utility Rebate Programs

Before scrapping, check if your electric company has a “Bounty Program.” Some utility providers will pay you $50–$100 to pick up and recycle old, working, energy-inefficient fridges or AC units—often more than the raw scrap metal value.

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4. Safety and Legal Basics

• Refrigerants: Federal and local laws often require that Freon or other refrigerants be professionally drained before a scrap yard will accept a fridge or AC.
• ID Requirements: Most reputable scrap yards require a valid government-issued ID to prevent the sale of stolen materials.
• Hazardous Materials: Avoid trying to scrap old televisions (CRTs) or monitors at metal yards; these are considered e-waste and often require a disposal fee rather than providing a payout.

1. The Core Business Model: How It Works

At its heart, the metal recycling business operates on a “buy-low, sell-high” strategy, but the profit is generated through value-added processing.

The Lifecycle of Scrap Metal

1. Collection & Acquisition: Sourcing material from homeowners (appliances), construction sites (rebar, beams), and manufacturers (industrial offcuts).⁴
2. Sorting: Separating metals into two primary categories:
   • Ferrous Metals: Contain iron (steel, cast iron).⁵ These are magnetic and handled in high volumes.
   • Non-Ferrous Metals: Do not contain iron (copper, aluminum, brass, nickel).⁶ These are non-magnetic and significantly more valuable per pound.
3. Processing: Using heavy machinery like shredders, balers (to compact metal into cubes), and shears (to cut large beams) to prepare the metal for furnaces.⁷
4. Sales: Selling the processed, “clean” scrap to steel mills, foundries, and smelters.⁸

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2. Market Drivers in 2026

The industry is currently experiencing a surge driven by three major global trends:

• Electric Vehicle (EV) Boom: EVs require significantly more copper and aluminum than traditional internal combustion engines.⁹ This has turned end-of-life EV batteries into a “gold mine” for specialized recyclers.
• Decarbonization Goals: Steel mills are under immense pressure to reduce CO2. Producing “Green Steel” using recycled scrap consumes 60% to 75% less energy than mining and smelting virgin iron ore.¹⁰
• Resource Scarcity: With the rising costs of primary mining and geopolitical trade restrictions, recycled metal has become a critical strategic reserve for many nations.

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3. Financial Outlook and Profitability

The global metal recycling market is projected to grow at a CAGR of approximately 6% through 2034. However, profitability is highly sensitive to commodity price volatility.

Metal Type	Source Examples	Market Value Level
Copper	Wiring, plumbing pipes, motors	High (High demand for green energy)
Aluminum	Beverage cans, siding, car rims	Medium (High recycling efficiency)
Steel	Car frames, appliances, rebar	Low (per lb) but High (Volume)
Critical Metals	Lithium, Cobalt, Nickel (E-waste)	Very High (Technical niche)

Pro Tip: In 2026, the most successful businesses are those using automated sorting technology. AI-driven sensors and robotic arms can now identify and sort alloys at speeds impossible for human labor, drastically increasing the purity—and thus the price—of the final product.¹¹

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4. Key Steps to Launching a Metal Recycling Business

Starting a recycling plant requires significant upfront capital and strict adherence to environmental regulations.¹²

1. Secure a Strategic Location: You need an industrially-zoned yard with easy access for heavy trucks and proximity to either scrap sources (urban centers) or buyers (industrial hubs).¹³
2. Regulatory Compliance: Metal recycling is heavily regulated to prevent “metal theft” and environmental contamination.¹⁴ You will need a Scrap Metal Dealer License, environmental permits for stormwater runoff, and OSHA-compliant safety certifications.¹⁵
3. Investment in Equipment:
   • Commercial Scales: Certified scales are essential for trust.
   • Material Handlers: Forklifts or excavators with magnets and grapples.¹⁶
   • Spectrometers: Handheld XRF analyzers used to instantly identify the chemical composition of an alloy.

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5. Environmental Impact

The business of metal recycling is one of the few industries where profitability aligns perfectly with sustainability.

• Energy Conservation: Recycling aluminum saves 95% of the energy required to make it from raw bauxite.¹⁷
• Resource Protection: One ton of recycled steel saves 2,500 lbs of iron ore and 1,400 lbs of coal.¹⁸
• Landfill Diversion: Metals do not biodegrade. Recycling prevents toxic leaching and preserves landfill space for non-recyclable waste.¹⁹

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Summary

The metal recycling business in 2026 is no longer about “junk”—it is a high-tech, essential service that powers modern manufacturing.²⁰ While it requires navigating volatile market prices and strict regulations, the shift toward sustainable “Green Metals” ensures long-term demand.

Coburg has evolved from a traditional industrial heartland into a key player in Melbourne’s circular economy.¹ The scrap metal industry in Coburg and Coburg North is a thriving sector that serves everyone from local residents clearing out garages to large-scale construction firms.

Here is an overview of how the scrap metal business operates in Coburg, the current market rates for 2026, and how to maximize your return.

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The Landscape of Scrap Metal in Coburg

Because of its strategic location and industrial zoning (particularly around Coburg North), the area is home to several major recycling facilities.² These businesses don’t just “buy junk”; they act as critical processing hubs that prevent metal from entering landfills like Wollert.³

Key Players in the Area:

• Yukri Scrap Metal: Known for extensive free pick-up services across Coburg North and competitive pricing on non-ferrous metals like aluminum and copper.
• Scrappy’s Metal Recycling: A long-standing operator specializing in both residential “cash-for-scrap” (via EFT) and industrial factory strip-outs.
• Consolidated Metal Industries: Located nearby in Brunswick, they provide drive-thru services and are a go-to for tradies with smaller, frequent loads.
• VIC Star Metals: Specialized in heavy-duty recycling, including vehicle scrap and industrial waste management with free bin services.⁴

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2026 Estimated Scrap Metal Prices

Prices in Coburg fluctuate based on the London Metal Exchange (LME) and local demand.⁵ Below are the estimated rates for common materials as of early 2026:

Metal Type	Grade / Condition	Estimated Price (AUD/kg)
Copper	Bright & Shiny (No. 1)	$10.50 – $11.90
Copper	Domestic / Insulated Wire	$6.50 – $9.60
Brass	Clean Taps & Ornaments	$5.50 – $6.50
Aluminum	Extruded / Window Frames	$1.60 – $2.40
Stainless Steel	304 Grade (Kitchen Sinks)	$1.20 – $1.80
Steel / Iron	Car Bodies & Appliances	$0.15 – $0.35
Lead	Clean / Wheel Weights	$1.30 – $1.80

Note: These prices are indicative. Always call ahead for a “daily rate” quote as prices can shift overnight.

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Important: The “No Cash” Law

It is vital to remember that since 2018, it has been illegal in Victoria for scrap metal dealers to pay in physical cash.⁶

• Payment Methods: You will receive payment via Electronic Funds Transfer (EFT) or a non-cashable cheque.⁷
• ID Requirements: You must provide a valid Photo ID (Driver’s License or Passport).⁸
• Record Keeping: Dealers are required to record your vehicle registration and the details of the transaction.⁹

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Tips for Getting the Best Price

If you want to move from “getting rid of waste” to “making a profit,” follow these industry standards used by Coburg’s top recyclers:

1. Sort Before You Arrive: If you bring a mixed load of steel and copper, most yards will pay you the lower “steel” rate for the entire bin.¹⁰ Separate your metals into distinct piles.
2. Clean Your Metals: “Clean” copper (stripped of plastic) or “clean” aluminum (no steel screws attached) can fetch double the price of contaminated or “dirty” loads.¹¹
3. Check Minimum Weights: While most yards allow drop-offs of any size, free pick-up services usually require a minimum weight (often 200kg to 500kg).¹²
4. Magnets are Your Friend: Use a magnet to test your metal. If it sticks, it’s ferrous (steel/iron) and worth less. If it doesn’t stick, it’s non-ferrous (copper/brass/aluminum) and significantly more valuable.

The Strategic Edge: Why Metal Recycling is a Business Imperative

In the modern industrial landscape, metal recycling has transitioned from a “green” initiative to a core business strategy. As global supply chains face increasing volatility and regulatory bodies tighten environmental standards, the ability to recover and reuse metallic resources is no longer just ethical—it’s essential for long-term profitability.¹

Here is why metal recycling is a critical lever for business success.

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1. Drastic Cost Reductions

The most immediate benefit of recycling for any business is the impact on the bottom line. Producing secondary metal (recycled) is significantly cheaper than extracting primary metal from ore.²

• Energy Savings: Processing scrap metal requires a fraction of the energy needed for mining and refining.³ For example, recycling aluminum saves roughly 95% of the energy required to produce it from bauxite.⁴
• Lower Raw Material Costs: Buying recycled ingots or processing internal scrap reduces the dependence on expensive, fluctuating virgin material markets.⁵
• Waste Management Savings: By diverting metal from landfills, companies avoid high disposal fees and potential environmental fines.⁶

2. Supply Chain Resilience and Security

Global events, trade disputes, and mining strikes can lead to sudden shortages of raw materials.⁷ Businesses that integrate recycled metals into their supply chain create a “buffer” against these external shocks.⁸

• Localized Sourcing: Recycled metal can often be sourced domestically or even within a company’s own closed-loop system, reducing lead times and international shipping risks.⁹
• Resource Longevity: Many metals, such as copper and steel, can be recycled indefinitely without losing their physical properties, ensuring a perpetual “urban mine” for future production.¹⁰

3. Enhancing ESG and Brand Value

Environmental, Social, and Governance (ESG) criteria are now a primary focus for investors and consumers alike.¹¹ A robust recycling program serves as a tangible proof point of a company’s commitment to sustainability.¹²

• Carbon Footprint Reduction: Because recycling is less energy-intensive, it directly lowers a company’s Scope 3 emissions.¹³ This is crucial for businesses aiming for “Net Zero” targets.
• Market Differentiation: Consumers are increasingly choosing brands with transparent, circular supply chains.¹⁴ Being a “circular business” can be a powerful marketing tool that builds customer loyalty.¹⁵

4. Regulatory Compliance and Future-Proofing

Governments worldwide are introducing stricter legislation regarding waste and resource management.¹⁶

• Extended Producer Responsibility (EPR): Many regions now require manufacturers to be responsible for their products at the end of their life cycle.¹⁷
• Landfill Bans: As landfill space diminishes, many jurisdictions are banning the disposal of recyclable metals, making industrial recycling a legal necessity.
• Tax Incentives: Many governments offer tax credits or grants to businesses that invest in green technologies and circular economy infrastructure.

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Summary of Benefits

Feature	Impact on Business
Energy Consumption	Reduces operational overhead and utility costs.
Material Sourcing	Protects against price volatility in the global ore market.
Investor Relations	Improves ESG scores, attracting sustainable investment.
Legal Standing	Ensures compliance with evolving environmental laws.

Conclusion

For a modern business, metal recycling is an investment in efficiency and stability.¹⁸ It transforms “waste” into a high-value asset, shrinks the corporate carbon footprint, and builds a resilient foundation for a resource-constrained future.

Whether you are a homeowner clearing out a garage or a business managing industrial waste, scrap metal collection in Epping has become a streamlined, and often profitable, necessity. With a focus on sustainability and the rising value of metals like copper and aluminum, 2025 is an ideal time to turn your “junk” into a resource.

Types of Scrap Metal Collected

Epping’s recycling facilities and mobile collectors generally categorize metal into two groups:

• Non-Ferrous Metals (High Value): These do not contain iron, are not magnetic, and fetch the highest prices. Examples include copper piping, brass fittings, aluminum window frames, and lead.
• Ferrous Metals: These contain iron and are magnetic. While worth less per kilogram, they are often found in large quantities in steel beams, iron railings, and old machinery.
• White Goods & Appliances: Many local services offer free pickup for bulky items like washing machines, ovens, dishwashers, and air conditioning units.

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🚛 Collection Options in Epping

Residents and businesses in Epping (both NSW and VIC) have three primary ways to dispose of metal:

1. Free Mobile Collection Services

Several independent operators and specialized companies (such as A1 Metal Recycle or SRS Metals) offer free doorstep pickup. This is the most convenient option for bulky items. Most services will:

• Pick up from residential or commercial sites.
• Handle the heavy lifting and loading.
• Provide same-day or 24-hour response times.

2. Cash for Scrap (Drop-off)

If you have high-value metals like copper or brass, you may prefer to drive them to a local yard to get paid. Current 2025 market rates fluctuate, but copper remains a top earner.

• Total Waste Management (Epping): A major hub for industrial and domestic recycling.
• Tip: Always bring a valid ID, as many yards are legally required to record seller details to prevent the trade of stolen materials.

3. Council Kerbside Clean-up

For residents in Epping, NSW (City of Parramatta), you are eligible for pre-booked bulky waste collections. While these include metal, they have strict volume limits (usually 2 cubic meters) and specific rules about placement.

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🌍 The Environmental Impact

Recycling metal isn’t just about clearing space; it’s a critical part of the circular economy.

• Energy Savings: Recycling aluminum saves roughly 95% of the energy required to produce it from raw ore.
• Landfill Reduction: Metals do not biodegrade. Collecting them ensures they don’t take up space in landfills where they could potentially leak toxins into the soil.
• Carbon Footprint: Using recycled steel reduces air pollution by approximately 86% compared to mining new iron.

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💡 Quick Tips for Epping Residents

• Separate Your Metals: You’ll get a better price if your copper isn’t mixed with steel.
• Check for Magnets: If a magnet sticks to it, it’s likely steel or iron (lower value). If it doesn’t stick, it’s likely a more valuable non-ferrous metal.
• Safety First: When handling old scrap, wear heavy-duty gloves to avoid cuts from sharp edges or rust.

The white goods recycling business—the collection, dismantling, and processing of large household appliances like refrigerators, washing machines, and air conditioners—is rapidly shifting from a niche industrial service to a cornerstone of the global circular economy.

As of 2025, the home appliance recycling market is estimated to be worth $21.26 billion, with a projected growth to $34.81 billion by 2032 (CAGR of 7.3%).¹ Driven by stricter environmental mandates and the rising value of reclaimed metals, this sector offers a lucrative opportunity for entrepreneurs.

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1. Market Opportunity and Drivers

The “throwaway culture” of the past is being replaced by regulatory and economic necessity. Several factors are fueling the demand for professional appliance recycling:²

• Replacement Cycles: Smart home integration and energy-efficiency standards (like Energy Star) are prompting consumers to replace older appliances faster.³
• Regulatory Pressure: The EU’s WEEE (Waste Electrical and Electronic Equipment) Directive and various U.S. state landfill bans make it illegal to simply dump white goods.
• Urbanization: In 2025, rapid urbanization in Asia-Pacific and Africa is generating record volumes of e-waste, with the region accounting for over 25% of the global market share.⁴

2. The Business Model: How It Makes Money

A successful white goods recycling business typically relies on three primary revenue streams:

Revenue Stream	Description
Commodity Sales	Selling sorted scrap (aluminum, copper, steel, and plastics) to manufacturers.
Tipping Fees	Charging municipalities, retailers, or individuals a fee to drop off or collect their old units.
Producer Responsibility	Receiving payments from manufacturers (via Producer Responsibility Organizations) to fulfill their legal “take-back” obligations.

Pro Tip: In 2025, refrigerators remain the most profitable segment due to their high metal content, though they require the most specialized handling to manage hazardous refrigerants.

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3. Operations and Specialized Technology

Recycling a washing machine is no longer just about using a sledgehammer. Modern facilities utilize advanced technology to maximize material recovery:⁵

• Hazardous Material Removal: Step one involves “de-manufacturing”—safely extracting CFC/HCFC gases from fridges and PCBs from older circuit boards.
• Automated Sorting: Using Eddy Current Separators to pull non-ferrous metals (like aluminum) and Optical Sensors to sort various types of plastics.⁶
• AI and Robotics: AI-powered arms are increasingly used to identify and sort complex components that were previously too labor-intensive to separate manually.⁷

4. Legal and Environmental Compliance

This is a highly regulated industry. To operate legally, businesses must typically secure:

1. Environmental Permits: To handle hazardous waste (refrigerants, oils, and heavy metals).⁸
2. EPA Section 608 Certification (US): Specifically for technicians handling refrigerants.
3. Zoning & Transportation Permits: For operating a heavy industrial site and moving bulk waste.⁹

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5. Strategic Partnerships: The Key to Scalability

The most successful recyclers don’t wait for consumers to call; they build “upstream” partnerships:¹⁰

• Retailer Take-Back Programs: Partnering with stores like Best Buy or Ikea to handle the units they collect when delivering new ones.¹¹
• Municipal Contracts: Bidding for exclusive rights to a city’s bulky waste collection.
• Manufacturer Partnerships: Working directly with brands to reclaim specific materials for use in new “closed-loop” product lines.¹²

Summary of Success Factors

• Volume is King: Profitability depends on the “throughput” of the facility.
• Purity Matters: The cleaner your sorted materials (e.g., 99% pure aluminum), the higher the price you can command from mills.
• Sustainability Branding: Use your “green” credentials to win corporate contracts focused on ESG (Environmental, Social, and Governance) goals.

Coburg, particularly Coburg North, has long been a vital hub for industrial services in Melbourne’s northern suburbs. The scrap metal recycling business in this area plays a dual role: providing a lucrative exit for unwanted materials for residents and tradespeople, while supporting Victoria’s commitment to a circular economy.

Whether you are a local resident with a garage full of “junk” or a business looking to clear a factory, understanding the Coburg scrap market is key to maximizing your return.

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1. Top Scrap Metal Services in Coburg

Because of its industrial zoning, Coburg is served by several major players and specialized recyclers. Most offer two primary ways to trade:

• Public Drop-off: Ideal for residents with smaller loads (appliances, copper pipes, or old car batteries).
• Free Bin & Collection Services: For industrial sites or large-scale cleanouts, companies like Yukri Metals and Manhari Recycling offer free bin placement and scheduled pickups for significant volumes.¹
• Specialized Recycling: Many yards in the area specialize in “White Goods” (fridges, washers) or high-value non-ferrous metals like copper and brass.

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2. Estimated Scrap Prices in Coburg (2025)

Prices in Melbourne fluctuate based on the London Metal Exchange (LME) and local demand.² Below are the estimated rates you can expect at Coburg-area yards:

Metal Type	Price Range (AUD per kg)	Common Items
Copper (Bright & Shiny)	$10.50 – $11.50	Stripped electrical wiring.
Copper (Domestic/Pipe)	$9.00 – $10.00	Plumbing pipes and fittings.
Brass (Clean)	$5.50 – $6.50	Taps, valves, and ornaments.
Aluminium (Extruded)	$1.60 – $2.10	Window frames and door tracks.
Stainless Steel (304)	$1.20 – $1.80	Kitchen sinks and benches.
Steel / Iron	$0.15 – $0.30	Car bodies, beams, and appliances.

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3. Important: The “Cash for Scrap” Ban

If you are selling scrap in Coburg, you must be aware of the Victoria Scrap Metal Laws (effective since 2018). These regulations were designed to curb metal theft and ensure every transaction is traceable.³

• No Cash Payments: It is illegal for any scrap yard in Victoria to pay you in physical cash.⁴
• Payment Methods: You will be paid via Electronic Funds Transfer (EFT) or a non-cashable cheque.⁵
• ID Requirements: You must present a valid Photo ID (Driver’s License or Passport).⁶ The dealer is required to record your details and the registration of the vehicle delivering the metal.⁷

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4. Tips for Getting the Best Price

To move from “waste disposal” to “profitable recycling,” follow these local industry standards:

1. Clean Your Metal: “Clean” copper (stripped of plastic) or “Clean” brass (no steel bolts attached) can fetch double the price of “Dirty” or contaminated loads.
2. Sort Before You Arrive: If you bring a mixed bin of steel and copper, many yards will pay you the lowest common denominator (the steel price) for the whole load.
3. Check for “Minimum Weights”: Some Coburg North collection services require a minimum of 200kg–500kg for a free pickup; otherwise, a transport fee may apply.

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5. Environmental Impact in the Moreland Area

By using a local Coburg recycler instead of sending metal to a landfill like Wollert, you are significantly reducing your carbon footprint.

• Energy Savings: Recycling aluminium in Coburg uses 95% less energy than producing new aluminium.
• Local Economy: Supporting local yards keeps industrial jobs within the Merri-bek City Council area and supports the Victorian manufacturing chain.

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Ready to clear your scrap?

I can help you further by finding the specific phone numbers for the highest-rated scrap yards in Coburg North or by calculating the estimated value of a specific pile of metal you have.

1. Selling Metal: The Transaction Process

Since 2016–2018, most Australian states (NSW, VIC, QLD, WA) have implemented the Scrap Metal Industry Act, which revolutionized how metal is traded to prevent the sale of stolen goods.³

The “No Cash” Rule

• Traceable Payments Only: It is illegal for scrap dealers to pay cash for metal.⁴ Payments must be made via Electronic Funds Transfer (EFT) or a cheque (not made out to cash).⁵
• Identification: Sellers must provide a valid Photo ID (Driver’s License or Passport).⁶ Dealers are required by law to record your name, address, and vehicle registration.⁷

Maximizing Value (2025 Pricing)

Metal Type	Est. Price (AUD/kg)	Where to find it?
Copper (No. 1)	$9.50 – $11.50	Stripped electrical wire, clean piping.
Brass	$5.50 – $6.50	Plumbing fixtures, valves, ornaments.
Aluminum	$1.20 – $1.80	Rims, window frames, extrusion.
Steel / Iron	$0.10 – $0.25	Car bodies, appliances, beams.

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2. Selling a Recycling Business: The Exit Strategy

Selling a scrap metal business in Australia is complex due to heavy equipment assets and environmental liabilities.

Step 1: Valuation & Financials

Most Australian scrap yards are valued on a multiple of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), typically ranging from 3x to 5x depending on the “Plant & Equipment” value.

• Plant Value: Includes shredders, balers, excavators, and EPA-compliant drainage systems.
• Inventory: Often sold at “landed cost” or market value at the time of settlement.

Step 2: Compliance Audit

A buyer’s due diligence will focus heavily on your “Right to Operate”:

• EPA Licenses: Evidence that the site meets soil and water contamination standards.⁸
• SLED Registration: In NSW, for example, the business must be registered with the Security Licensing & Enforcement Directorate.⁹
• Council Zoning: Verification that the yard has permanent “General Industrial” or “Heavy Industrial” zoning.

Step 3: Transaction Structure

• Asset Sale vs. Share Sale: Most buyers prefer an asset sale to avoid historic tax or legal liabilities.
• Work-in-Progress (WIP): Agreements on how to handle metal currently in the processing pile at the time of handover.

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3. Australian Regulatory Checklist

If you are operating or selling in this sector, ensure you are compliant with these 2025 standards:

• GST & ABN: If the seller doesn’t provide an ABN, the buyer must withhold 47% of the payment for the ATO.¹⁰
• Record Keeping: All transaction records (ID, weight, metal type) must be kept for 3 to 5 years (depending on the state).¹¹
• Heavy Vehicle National Law (HVNL): Ensures that the transport of bulk scrap via trucks complies with fatigue and load management laws.

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Would you like me to help?

I can assist further by:

• Drafting a due diligence checklist for buying/selling an Australian scrap yard.
• Creating a Standard Operating Procedure (SOP) for staff to ensure compliance with the “No Cash” laws.
• Researching specific regional scrap prices for your local Australian city (e.g., Sydney vs. Perth).

The fundamental goal of a scrap business is to acquire raw discarded metal at a low cost, add value through sorting and processing, and sell it at a premium to mills, foundries, or larger exporters.

1. Sourcing (The Buy)

Success depends on a consistent “feed” of material. Common sources include:

• Industrial/Manufacturing: Factory off-cuts, metal shavings, and obsolete machinery.
• Construction & Demolition: Rebar, structural steel beams, copper piping, and wiring.
• Automotive: End-of-life vehicles (ELVs), which are rich in steel, aluminum, and precious metals (from catalytic converters).
• Residential: Household appliances (“white goods”), soda cans, and old tools.

2. Processing (The Value-Add)

This is where the profit margin is created. Raw scrap is often “dirty” (mixed with plastic, wood, or other metals).

• Sorting: Using magnets to separate ferrous (iron-based) from non-ferrous metals.
• Cleaning: Removing insulation from copper wire or plastic from aluminum frames.
• Volume Reduction: Using balers or shredders to compress metal into dense, transportable units.

3. Selling (The Exit)

Processed scrap is sold to:

• Steel Mills & Smelters: Who use it as “secondary raw material” to create new metal products.
• Brokers/Exporters: Who aggregate massive quantities for international shipment.

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Ferrous vs. Non-Ferrous: Knowing Your Metals

Understanding the difference between these two categories is the “ABC” of the business.

Feature	Ferrous Metals	Non-Ferrous Metals
Examples	Steel, Iron, Cast Iron	Copper, Aluminum, Brass, Zinc, Lead
Magnetic?	Yes (usually)	No
Value	Lower (Higher volume)	Higher (Lower volume)
Corrosion	Prone to rust	Corrosion-resistant
Primary Sources	Cars, beams, appliances	Wiring, pipes, cans, radiators

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Environmental & Economic Impact

Recycling isn’t just profitable; it’s essential for the planet. The energy savings are massive:

• Aluminum: Recycling saves 95% of the energy required to make it from raw bauxite ore.
• Steel: Saves roughly 74% of the energy used in primary production.
• Pollution: Utilizing recycled steel reduces air pollution by 86% and water pollution by 76% compared to mining and refining virgin iron ore.

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How to Start a Scrap Metal Business in 2025

If you are looking to enter this industry, follow these strategic steps:

1. Secure Your Niche and Location

Don’t try to be everything to everyone immediately. You might start as a collector (itinerant picker with a truck) or a yard operator (fixed location for processing). Ensure your site is zoned for industrial use and has easy access for heavy trucks.

2. Obtain Licenses and Compliance

Modern scrap yards are highly regulated to prevent the trade of stolen goods (like copper wire or manhole covers).

• Scrap Dealer License: Often requires background checks and mandatory record-keeping.
• Environmental Permits: Required for handling hazardous materials like lead-acid batteries or fluids from scrapped cars.
• Anti-Theft Laws: Many regions now require cashless transactions (payment via check or bank transfer) to create a paper trail.

3. Invest in Essential Equipment

• Certified Scales: The most critical tool; your profit depends on accurate weights.
• Sorting Tools: Industrial magnets and handheld analyzers (XRF guns) to identify alloys.
• Transportation: A flatbed truck, forklift, or roll-off containers.

4. Monitor Global Markets

Scrap prices are tied to global commodity exchanges (like the London Metal Exchange). Prices for copper or steel can fluctuate daily based on international demand, particularly from manufacturing hubs in Asia.