Pricing Methodology & ISRI Standards
Explore how ScrapMetalIndex collects, anonymizes, and benchmarks secondary metal transaction data from recycling facilities across the United States. Our independent methodology aligns with ISRI circular specifications, rigorous outlier filtering, and zero broker bias.
1. Price Collection & Yard Survey Framework
ScrapMetalIndex collects daily price reports across non-ferrous and ferrous metal categories from verified commercial recycling facilities operating across the 50 US states. Our reporting network covers independent yards, multi-location regional processors, and industrial shredders.
Anonymous Yard Verification
To eliminate broker manipulation and artificial price inflation, individual yard names are anonymized while verifying valid state business licensing and commercial scale registration.
ISRI Grade Standardization
Raw dealer quotes are normalized according to Institute of Scrap Recycling Industries (ISRI) circular specifications (e.g. "Berry/Candy" for #1 copper, "Tense" for cast aluminum, "Tabor" for sheet).
Statistical Smoothing & Outlier Filtering
Prices exceeding 3 standard deviations from regional medians are automatically quarantined and inspected for contamination or typo errors before inclusion in national averages.
2. Exchange Benchmark Correlation (COMEX & LME)
Refined commodity metals trade continuously on global exchanges including the Chicago Mercantile Exchange (COMEX) and London Metal Exchange (LME). Unrefined scrap metal does not trade at 100% of exchange spot value because smelters and processors incur sorting labor, shipping freight, furnace melt loss, and refining overhead.
ScrapMetalIndex monitors the live recovery percentage (e.g. Bare Bright historically trading at 82–92% of COMEX spot, or secondary aluminum at 60–75% of LME). Tracking these spreads helps sellers identify whether local yard bids reflect fair market margins or excessive broker markdowns.
3. Regional Freight and Mill Adjustments
Domestic steel and non-ferrous markets fluctuate by proximity to primary electric arc furnace (EAF) mills (such as in the Midwest and South) or deepwater export docks (West and East Coasts). Our state matrix tracks regional variances to explain why yards in inland states may pay different rates than coastal export yards.
4. Editorial Governance & Lead Data Verifier
All data aggregation pipelines, mathematical recovery models, and ISRI grade categorizations at ScrapMetalIndex are designed and overseen by our founding data architect:
Serhii Kyrylenko · Founder & Lead Commodity Analyst
Operating as a specialized technology architect and secondary metals data specialist, Serhii Kyrylenko has built and maintained more than 15 international price discovery and commodity tracking services utilized daily by thousands of recyclers, tradespeople, and industrial scrap yards across the United States and Europe.
Entity Governance: ScrapMetalIndex is published by Serhii Kyrylenko, Sole Proprietor (registered in Ukraine). Direct inquiries, methodology audits, and scale data partnerships can be submitted directly to our editorial verification desk.