How do you calculate scrap material value in a foundry?

Multiply the number of scrap units by the recovery credit per unit, multiply by your usable-metal capture factor, then add fixed handling and remelt cost. With 100 units at $45, an 80% capture factor and $250 fixed cost, the total is $3,850.

Why is a capture factor needed instead of just weight times price?

Not all returned metal ends up back in a saleable casting. Oxidation, slag, refractory pickup and dross mean an 80% capture factor is realistic for many ferrous returns, which is why the captured value here is $3,600 before the fixed cost adjustment.

What is the per-piece scrap value in this example?

Total value of $3,850 divided by 100 units gives $38.50 per piece, which is the number to compare against the cost of handling each casting through the return loop.

Should the fixed cost be added or subtracted?

In this model the fixed handling and remelt cost is added to represent the total dollars tied up in the lot. If you want net recoverable value to compare against a broker offer, subtract your handling cost from the captured value instead.

What capture factor should I use for gates and risers?

Clean, dry gates and risers from a controlled remelt often capture 90 to 95 percent. Contaminated borings, machine turnings or skulls with refractory pickup can drop to 60 to 70 percent, so set the factor per stream.

Is it cheaper to remelt returns or sell them?

Compare the per-piece captured value against your marginal remelt cost per piece plus energy. If captured value exceeds what a broker pays and your furnace has spare capacity, in-house remelt usually wins.

Refractories, Furnace Linings & Foundry Consumables calculator

Scrap Material Value Calculator

Scrap Material Value tells a foundry what its returned castings, gates, risers and refractory-contaminated skulls are actually worth once you account for how much usable metal you can recover. Melt-shop supervisors and cost accountants use it to decide whether to remelt in-house, sell to a broker, or scrap outright. Because remelt yields, handling labor and refractory losses eat into the headline weight, the true recovered value is almost always lower than the nominal scrap tonnage suggests. This calculator applies a capture factor and a fixed cost so the number you quote to purchasing or finance reflects reality, not a spot-price fantasy.

What this calculator does

Scrap Material Value tells a foundry what its returned castings, gates, risers and refractory-contaminated skulls are actually worth once you account for how much usable metal you can recover.
Use it when scrap material value in refractories, furnace linings and foundry consumables is being put through a refractories, furnace linings and foundry consumables weighted-cost review.
It computes the total recovered dollar value of a scrap lot from quantity, per-unit credit, a usable-metal capture factor and a fixed handling cost, plus the value per piece.

Formula used

Scrap Material Value cost = quantity × rate × capture factor + fixed cost
Per-unit scrap material value = total cost ÷ quantity

Inputs explained

Scrap castings recovered per heat:
Recovery credit per casting:
Usable-metal capture factor:
Fixed handling and remelt cost:

How to use the result

Use it when deciding whether to remelt returns internally, when pricing a scrap sale, or when reconciling melt-shop material variances each heat or shift.
The capture factor is an average; a lot heavy in refractory-contaminated skulls or oxidized borings can capture far less metal than a clean gate-and-riser return, so segregate streams before trusting one blended number.

Current U.S. benchmarks

The producer price index for steel mill products stands at 348.53 (BLS, May 2026), up 6.7% from a year earlier. Quotes priced off last quarter's material cost miss this move.
Industrial electricity averages 8.66 cents per kWh across the U.S. (EIA, Apr 2026), up 5.5% from a year earlier. Energy-intensive steps carry this directly into unit cost.
The U.S. has 3,569 primary metal manufacturing establishments employing about 354,911 workers (Census County Business Patterns, 2023).

Common questions

How do you calculate scrap material value in a foundry? Multiply the number of scrap units by the recovery credit per unit, multiply by your usable-metal capture factor, then add fixed handling and remelt cost. With 100 units at $45, an 80% capture factor and $250 fixed cost, the total is $3,850.
Why is a capture factor needed instead of just weight times price? Not all returned metal ends up back in a saleable casting. Oxidation, slag, refractory pickup and dross mean an 80% capture factor is realistic for many ferrous returns, which is why the captured value here is $3,600 before the fixed cost adjustment.
What is the per-piece scrap value in this example? Total value of $3,850 divided by 100 units gives $38.50 per piece, which is the number to compare against the cost of handling each casting through the return loop.
Should the fixed cost be added or subtracted? In this model the fixed handling and remelt cost is added to represent the total dollars tied up in the lot. If you want net recoverable value to compare against a broker offer, subtract your handling cost from the captured value instead.
What capture factor should I use for gates and risers? Clean, dry gates and risers from a controlled remelt often capture 90 to 95 percent. Contaminated borings, machine turnings or skulls with refractory pickup can drop to 60 to 70 percent, so set the factor per stream.

Last reviewed 2026-05-12.