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How Do We Get Proper Value From the Skeletons and Offcuts Our Fabrication Shop Scraps?

Sheet metal fabricators mix stainless, aluminium and mild steel scrap and accept whatever the merchant pays. We build scrap tracking by grade and collection.

Updated 3 min readBy SpiderHunts Technologies

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Quick answer — TL;DR

Scrap value leaks because skeletons and offcuts of different grades end up in the same skip, weights are taken from the merchant's ticket without a check, and nobody knows how much scrap each material should be producing. We build scrap tracking that estimates the scrap from each nest by grade, records bins and collections, compares the merchant's weights and prices with what you expected, and shows scrap as a share of material used.

One skip, three metals, one price

The laser skeletons go in the skip behind the building. So do the stainless offcuts, the aluminium trimmings, and anything else that is not wanted. Once a fortnight the scrap merchant collects. The ticket says a weight and a grade, usually mixed or light iron, and a price. Nobody at your end weighed it.

Stainless and aluminium scrap are worth considerably more than mild steel, but only if they are kept separate. Mixed in the skip, they go at the lowest grade.

Why scrap is treated as rubbish

Scrap feels like waste to be cleared rather than material to be sold, so it gets the least attention in the shop. The merchant's ticket is trusted because there is nothing to compare it with.

  • Different grades share bins or skips.
  • Nobody knows how much scrap each nest produces.
  • Collection weights and prices are taken on trust.
  • Merchant prices are not compared with market prices or other merchants.
  • Scrap income is not linked to material purchases.

What it costs

Lower prices for scrap that could have been sold as a better grade. Weights that nobody can challenge. And a missed signal: if scrap as a share of material is rising, your nesting, remnant use or cutting quality may be slipping, and the scrap numbers are the first place it would show.

The scrap tracking we build

  1. Each nest's scrap weight is estimated from the sheet weight and the parts cut, by material and grade, from the nest reports your software produces.
  2. Bins for each grade are labelled, and when a bin is emptied into the skip or stillage for that grade, it is logged with a photo on a tablet.
  3. Collections are logged with the merchant's ticket, read automatically: grade, weight, price per tonne and total.
  4. The tool compares each collection with the scrap you expected by grade since the last one, and flags large differences.
  5. Merchant prices are shown over time next to published market indicators you choose, so you can see if your price is drifting.
  6. A monthly report shows scrap weight and income by grade, and scrap as a share of material bought, so trends in waste are visible.
MeasuredWhy it matters
Expected scrap per nestBaseline for what collections should weigh
Scrap by gradeStainless and aluminium sold at their own price
Merchant weights and pricesChecked, not taken on trust
Scrap share of materialEarly sign of poor nesting or remnant use
Income over timeEvidence for negotiating with merchants

What changes

Grades are kept apart because the tracking makes the difference visible. Collections are checked against expectations, so a light ticket gets questioned. You can talk to merchants with your own figures. And the scrap share of material becomes a number the laser team watches, which tends to improve nesting and remnant use without anyone being told to.

Keeping grades apart takes a little discipline at first. Clearly labelled bins at the laser and the brake, and one for each grade at the saw, do most of the work. The tracking gives people a reason to use them, because the income from each grade is shown, and some shops choose to put part of it towards the team's social fund.

Your accountant will also thank you. Scrap income recorded by collection, with tickets attached, is easier to reconcile than a handful of payments with no paperwork behind them.

Is your scrap worth more than you get?

  • All grades go in the same skip.
  • You accept the merchant's weight without checking.
  • Nobody knows how much scrap to expect.
  • Scrap prices have not been compared in a long time.
  • Scrap is seen as rubbish rather than income.

FAQ

Frequently asked questions

The questions readers ask us after this guide.

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Do we need a weighbridge?

No. Expected weights come from nest reports. A platform scale for bins helps if you want to check more closely.

Can it read scrap merchants' tickets?

Most tickets are printed or emailed and can be read automatically, with a person confirming the figures.

Does it handle swarf and offcuts from other machines?

Yes. Other sources can be logged by bin and grade in the same way.

Will this tell us which merchant to use?

It gives you figures to compare. The choice of merchant is yours.

Keep reading

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