Although the Chicago plant has access to all three transportation modes, scrap comes in mainly by truck. Most of Hirsch's vendors are regular suppliers working under contract. Azcon's special equipment includes rail breakers and rail sorters, which are handled by the company's Rail Abandonment Div. The changing scrap market requires Azcon to be astute about gathering and processing information. We have the proper software and the personnel to get and process the enormous amount of information our customers require, such as documentation for managing their heats and inventory levels.
Freight is the overriding factor.
It can represent 20-25 percent of the product's delivered price. By contrast, incoming freight typically is 5-10 percent of the item. Samuel Recycling usually can recover this cost in the selling price of the processed scrap, says company president John Dulin. Mills pay a premium to transport scrap from a remote market. Thus, it behooves a processor to develop a special grade or process that a buyer wants enough to reach out and pay more to obtain.