Scrap waste business comprises of,scrap plastic waste,scrap metal waste,and paper waste.These are the major money deals. In kenya we have over 100 major steel smelting industries eg Doshi,Bachu, Devki etc. These companies smelt over Ten thousand meters of steel on daily basis.They solemnly depends on locally collected scrap meatal or they import billets when the supply declines.All the building metallics you see are recycled in kenya.
The prices of Scrap metal ranges from ksh 20 to ksh 35 when buying and it ranges from ksh 38 to ksh 45 selling price per kg. The selling prices sometimes goes down up to 28 during rainy season especially March, April, November and December during rainy rainy seasons and festive seasons because this is when constructions across the country are minimal.
Assuming you won a tender with KPA or Kenya railways to dispose their Five hundred meters of steel scrap. They normally sell at 25bob per kg then maybe you get a good selling prices of lets say 35 bob(500×1000=500000kgs),500000×10bob the profit=5m clean money,use 2m for transport and logistics.You will end up having 3million profit in few days.
The quality and quantity of your scrap product dictates the the price.The profit margin ranges between 5bob or 10bob per kg,if the quantity is higher then the deal becomes even better.This applies to scrap plastic and paper waste dealership.
Every enterpreneur tries to solve the persisting problem facing the society. Acquiring scrap metal,scrap plastic,waste papers in kenya is an lactating task now,and taking the fact that smelting companies must continue producing metal for construction.After thoroughly research i found that the smelting companies don't like the billets because they claim it is of low quality.
However you can choose to import you scrap metal/plastic/paper.This is more profitable than buying from Kenyan market. If you import lets say steel scrap metal,like 1000mt, store them into your yard,trust you can't go more than Five days without customers.In a single day you can get more than 10 calls from different smelting companies enquiring wether you have any scrap to selling.Its a business you dont need to go around looking for customers,they will look for you and in that case you will have upper hand to negotiate for a good deal.The African countries exporting steel and other scrap metal are South Africa and Zambia.The CIF costing is around $230 per mt,that translates to around ksh 23000
Every business has its own advantages and disadvantages.The key thing in every business is to set goals and focus on achieving those is what makes the business grow.Keep contacting your supplier and your customers for your business to grow.
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