We are moving forward with part two of evaluating whether it is worthwhile for you to chop your wire. We will start by putting some formulas on the board. Recently, someone got in touch with us about this. They receive around15,000 lbs of auto harness every two weeks, totaling 30,000 lbs/month of insulated copper wire.

As an example to estimate potential earnings, we will use COMEX copper at $3.83, minus a spread of $0.45, which equals $3.38. $3.38 is what bare bright would be going for. Then, with the recovery rate of auto harness at 50%, multiply that by $3.38, which is $1.69. Subtracting $1.15, which is what unprocessed auto harness is going for, from $1.69 gets us $0.54. Then multiply that by 30,000 lbs, and that is $16,200 before expenses.

To handle this volume, a system would cost approximately $70,000 to $80,000. Financing this over three years at around 8% would add about $2,500/month. Subtracting this from the $16,200, along with labor and electricity costs, they could expect an additional $8,000 to $10,000 per month in profit. Moreover, the system they are considering can handle up to three times their current volume, which allows for future growth and potentially higher profits.

Their situation is ideal because they already have a steady supply of material and are familiar with the market dynamics. Processing it themselves appears financially viable, particularly given their current volume of 30,000 lbs/month. This decision promises increased profitability without overwhelming monthly payments.

If you have any further questions or need additional formulas, feel free to contact us.