MAKE A LOT OF MILLIONS NOW! TRADING ON METAL SCRAPS.

I will teach you Step-By-Step on how to make a lot of money NOW!

(1) TRADING ON METAL SCRAPS (FOR PEOPLE IN NIGERIA AND IT'S ENVIRONS).

INTRODUCTION.

I am sure entrepreneurs would agree with me that trading metal scrap offers the best option for the survival of any business in Nigeria because, it requires no electricity input which the major problem of most manufacturers in Nigeria is. When you add this to the fact that metal scrap trading is one of those relatively unknown lucrative business that are fast creating more middle class income earners in the country, then you would realize the rate of opportunity you are presented with in this article.

Scrap is a term used to describe recyclable materials left over from every manner of product consumption, such as parts of vehicles, often confused with waste; scrap in fact has significant monetary value.

METAL SCRAPS ARE GENERALLY CLASSIFIED INTO THREE, NAMELY HMS 1, HMS 2 AND USED RAILS.

HMS (Means Heavy Melting Scrap). It is the generic term for most types of heavy steel scraps. Normally cut to a size not exceeding 1.5m x 0.5m. It consists of cut lengths of pipe, re-bar, angles, steel poles, H or I beams, ships plate and so on.

HMS 1 Is the term used  for heavier scrap which has a density of at least 0.7 tons per cubic meter,.

Whereas,

HMS 2 consists of lighter steel scraps such as thin wall tubing (e.g. bicycle frames), sheet scrap less than 3.2mm thick and so on. The two are normally sold together with a ratio of 80/20 (HMS 1&2) heavy and light and so this would be the typical product being referred to when scrap dealers and traders talk about HMS.

USED RAILS are usually sourced from parts of railway equipment and machineries. They are usually more expensive than HMS but, the trading of the product in Nigeria has been banned except the entrepreneur gets a waiver from the government.

It is worthy of note that even with the large deposits of iron ore that have been discovered in the country (about N3 billion), Nigeria has not been able to assert herself as a steel producing nation. Steel, you would agree, is very important for the industrial attainment of any nation.

Likely in some other sectors in Nigeria’s economy, the government’s lack of commitment towards reviving the steel sector is reportedly costing the country over N100  billion in revenue. The indefinite closure of most of the rolling mills in the country such as Zuma rolling mills in Jos and Oshogbo steel Rolling mills, which were both privatized in 2005, accounts for a loss of over N5 billion. Their closure is slowing down the growth of the local steel market as service companies now rely largely on imported raw materials to operate. Some of these companies include nail companies, security wire companies, bolts and nuts manufacturers etc.

Steel producing plants operating in the country are largely metal scrap based plants mainly operated by the private sector and uses metal scrap as their raw materials to produce the local steel needs of the country. These plants are mostly located in south western part of the country and they need constant supply of metal scrap for the production of steel billets and steel rods.

The market for metal scrap is both local and international with China as the largest importing country but for the purpose of this write-up, I will only concentrate on the local market.

Going forward with the industrial policy of the government as it affects steel development and the building of local capacity, the government placed a ban on the export of iron ore and metal scraps. This has helped to deepen the local market.

Because of the multiple roles steel plays in the development of any nation, the demand for metal scrap from these smelting plants in Nigeria continues to grow at a faster rate than the supply. The supply gap that exists is expected to continue to expand as construction and manufacturing activities continue to grow.

Metal scrap can be sourced from junk yards, mechanic workshops, spare part dealers’ shops or even police stations. As at the time of writing this article, the price of the product ranges from N38, 000 to N45, 000 depending on the quality of the scrap supplied.

It is important that the investor gets to know the prevailing price before purchasing the product in order to make maximum returns on investment.

The capital required to start the business depends on the financial strength and the negotiating skills of the entrepreneur. On the average, with N100, 000 or even less, one can start the business. The return on investment is between 20%-30% per transaction.

The good side of the business is that it requires little capital to start which makes it easy for micro finance banks to sponsor.

For more info, call +2347034316588

by Rufus Clinton 5:03:00 pm 0 comments