Scrap Benchmarks

Scrap Yard KPIs and Benchmarks: Yield, Turns, Uptime and Recovery

The KPIs that run a scrap yard, from recovered yield to the spread over the index: how to measure each, what moves it, and which figures have a cited source.

Use these benchmarks as reference points for spotting a gap, not as targets. Your own trend by grade and by week says more about your yard than any single published figure, so let the ranges below point you to the KPI with the most money behind it.

Every figure shows its basis. A superscript number links to a public source in the Sources list, and the sentence gives that source's scope. Most yard operating figures here are marked no cited source: they are kept exactly as originally published because no public source stating them was found, so treat them as illustrative.

At a glance

Scrap yard KPI benchmarks at a glance
KPITypicalStrongBasis
Recovered yield, saleable weight over gross received88 to 92%94 to 96% (world-class shredding operations)no cited source
Inventory turns per year8 to 12 (mixed yards)18 to 24 on fast grades (disciplined shredded-focused operations)no cited source
Shear and baler utilization against nameplate55 to 65%75 to 82% (world-class disciplined yards)no cited source
Melt loss, clean prime grades2 to 4% (grade benchmark)Not statedno cited source
Melt loss, heavy melt4 to 6% (grade benchmark)Not statedno cited source
Melt loss, light oily turnings8 to 12% (grade benchmark)Not statedno cited source
Sort productivity, tons per labor hour3 to 5 (hand-sort lines)10 to 15 (mechanized lines with pickers)no cited source
Inbound contamination, prime gradesUnder 3% (benchmark)Under 1.5% (world-class inbound programs)no cited source
Inbound contamination, heavy meltUnder 6% (benchmark)Not statedno cited source
Truck payload against legal capacity8 to 12% left on the table (weak yards)Within 3% of the axle limit (strong yards)no cited source
Spread over the commodity index, dollars per ton30 to 45 (typical yards, when KPIs slip together)60 to 90 (world-class yards)no cited source
Words in parentheses give each figure's original framing. The melt loss figures are per-grade benchmarks, so they sit in one column. Not stated means the original guide gave no figure for that column.

Method: How the figures in this guide are sourced

A figure with a superscript number is stated by the cited source, listed under Sources with its publisher, location in the document and access date, and the sentence gives its scope. A figure marked no cited source is kept exactly as originally published because no public source stating it was found. It is illustrative, not measured industry data. Worked examples show arithmetic only and are not benchmarks.

Recovered yield

Recovered yield is the flagship KPI: saleable weight out of gross weight received. Typical yards run 88 to 92 percent no cited source, and world-class shredding operations hit 94 to 96 percent through tighter downstream separation no cited source.

Small drops are expensive, so trend yield weekly by grade. The lever is upstream: better inbound inspection and tighter buy specs move yield faster than any downstream sorting equipment upgrade.

For example, a 2 point yield drop across 8,000 tons a month at 320 dollars per ton is 8,000 x 2 percent x 320 = 51,200 dollars of vanished revenue every month.

How to measure

  • Divide saleable weight shipped by gross weight received.
  • Report it per grade, not as one yard-wide number.
  • Trend it weekly so a drop shows up before month end.

What moves it

  • Inbound inspection at the scale and at unloading.
  • Tighter buy specs, so off-grade material is priced as what it is.
  • Downstream separation on shredded material.

The Recovered Material Yield calculator tracks it per grade.

Inventory turns

Inventory turns measure trapped capital. Typical mixed yards turn 8 to 12 times a year no cited source, and a disciplined shredded-focused operation turns 18 to 24 on fast grades no cited source. Below 6 turns you are financing piles that oxidize and lose weight no cited source.

How to measure

  • Divide tons shipped by rolling average tons in inventory, annualized.
  • Use a rolling average, not a single month-end count.
  • Split fast grades from slow cast and specialty grades.

What moves it

  • Shipment cadence, with loads consolidated to full legal payload.
  • Grade discipline, moving stagnant cast and specialty grades on a scheduled sweep rather than waiting for a price pop.

Together those two levers can lift turns 3 to 5 points in a quarter no cited source. The Yard Inventory Turns calculator runs the arithmetic from shipped tons and average inventory.

Shear and baler utilization

Shear and baler uptime separates good yards from break-even ones. Nameplate throughput means little on its own; effective utilization against nameplate is the KPI.

Typical operations run 55 to 65 percent utilization against nameplate no cited source. World-class disciplined yards reach 75 to 82 percent no cited source.

For example, closing a 10 point utilization gap on a 90 ton per hour machine adds 9 tons per operating hour (10 percent of 90). Over 8 operating hours, that is 72 more tons with zero new capital.

How to measure

  • Measure effective tons per operating hour from scale tickets, not from the machine plate.
  • Divide effective tons per hour by nameplate tons per hour.
  • Log every stop by cause: feed waits, changeovers, blade work and breakdowns.

What moves it

  • Crane feed choreography, so the machine never waits for material.
  • Changeover reduction between grades and bale sizes.

Measure effective throughput with the Shear/baler Throughput calculator.

Melt loss by scrap grade

Melt loss is the recovery KPI on the furnace side: the share of charged weight that does not come out as liquid metal. Clean prime grades should benchmark 2 to 4 percent no cited source, heavy melt 4 to 6 percent no cited source, and light oily turnings 8 to 12 percent no cited source.

No public source stating melt loss by scrap grade was found, but U.S. Department of Energy (DOE) furnace data give context. DOE's 1999 profile of the metalcasting industry cites work putting electric arc furnace yield at about 95 percent1, and its 2005 melting report lists 5 to 8 percent melt loss for direct arc steel melting2. Both are foundry furnace figures, not scrap grade figures.

Prep quality drives the spread between grades. The 1999 DOE profile notes that clean scrap may generate aluminum dross of around 1 percent of the metal melted, while plants melting dirty, painted or light-gauge scrap may produce dross above 15 percent of the charge3.

The same profile puts aluminum melt losses in reverberatory furnaces at 2 to 12 percent4, and cupola iron melt losses at 7 to 10 percent5. Dross includes entrained metal, so it is not the same measure as melt loss.

Typical melt loss by furnace and metal in foundry melting
Furnace and metalTypical melt lossBasis
Induction, iron1 to 2%DOE2
Induction, steel2 to 3%DOE2
Direct arc, steel5 to 8%DOE2
Cupola, iron3 to 12%DOE2
Electric reverberatory, aluminum1 to 2%DOE2
Gas reverberatory, aluminum3 to 5%DOE2
Figures from Exhibit 1 of DOE's 2005 report on melting technologies for the metal casting industry2. They describe furnace types in foundries, not scrap grades.

Track melt loss by grade and flag any heat drifting a point above its grade band no cited source.

For example, each point of melt loss recovered on a 20,000 lb heat is 1 percent of 20,000 lb, or 200 lb of saleable liquid metal per charge, which compounds fast across a shift of heats.

How to measure

  • Weigh the charge and the liquid metal tapped for every heat.
  • Record the grade mix of each charge.
  • Trend loss by grade, not as a furnace average.

What moves it

  • De-oiling turnings before they are charged.
  • Reducing fines, which cuts oxidation loss.
  • Keeping dirty and clean grades apart in the charge plan.

Estimate loss per heat with the Melt Loss Estimate calculator.

Sort labor productivity

Labor productivity is best benchmarked two ways: tons sorted per labor hour and labor dollars per ton. Typical hand-sort lines run 3 to 5 tons per labor hour no cited source; mechanized lines with pickers hit 10 to 15 no cited source.

Hold a target dollars-per-ton band for each grade. Overstaffing a clean grade or understaffing a dirty one both blow the target.

How to measure

  • Divide tons sorted by paid labor hours on the line, per shift.
  • Convert it to labor dollars per ton with loaded wage rates.
  • Report both by grade, since dirty grades sort slower.

What moves it

  • Crew size matched to how dirty the grade is.
  • Operators cross-trained to flex between sorting and machine feed, which keeps tons per labor hour near the top of the band during flow swings.

Set crew targets with the Scrap Sort Labor calculator.

Inbound contamination

Contamination rate is a quality KPI that gates everything downstream. Benchmark inbound contamination at under 3 percent for prime and under 6 percent for heavy melt no cited source; world-class inbound programs hold prime under 1.5 percent no cited source.

Trend the deduction lines by supplier, because two or three dirty accounts usually drive most of the give-back no cited source.

How to measure

  • Record contamination as a share of gross weight on every inbound load.
  • Keep each load's deduction in pounds and in dollars.
  • Roll both up by supplier every month.

What moves it

  • Supplier scorecards that rank accounts by contamination percent.
  • Inbound inspection that records contamination on every load.

Re-pricing or coaching the worst 20 percent typically cuts total penalty dollars 30 to 40 percent within two months no cited source. Total the deductions by supplier with the Contamination Penalty calculator.

Truck payload and freight

Scale and freight efficiency is a quiet KPI with real leverage: average payload against legal capacity. Strong yards load to within 3 percent of the axle limit no cited source, and weak ones leave 8 to 12 percent on the table no cited source.

For example, closing a 10 percent payload gap on a 22 ton target adds 2.2 tons per haul (10 percent of 22). With a fixed cost per haul, going from 19.8 to 22 tons cuts freight per ton by 10 percent (1 - 19.8 / 22), which drops straight to the delivered net.

How to measure

  • Compare each outbound load's net weight with the legal payload for that truck and route.
  • Average the shortfall by lane and by loader.
  • Trend freight dollars per ton by lane.

What moves it

  • Loading to a target weight confirmed on the scale before the truck leaves.
  • Consolidating partial loads instead of shipping light.

Confirm loading targets with the Truck Scale Capacity calculator, and trend dollars per ton by lane with the Scrap Freight Burden calculator.

Delivered net spread over the index

Tie the KPIs to a single north-star: delivered net dollars per ton, benchmarked weekly against the commodity index. World-class yards hold a 60 to 90 dollar per ton spread over the index through price cycles no cited source.

Typical yards see the spread compress to 30 to 45 dollars when they let yield, turns and uptime slip together no cited source. A yield miss, a turns slowdown and an uptime dip each look survivable alone, but they compound into a spread collapse.

How to measure

  • Subtract the index price for each grade from delivered net dollars per ton.
  • Review it weekly beside the other KPIs on one dashboard.

What moves it

  • Every KPI above, because they move as a system.
  • A weekly review, so a slip in one KPI is caught before it compounds.

Track the spread with the Commodity Price Margin calculator.

How to build your own baseline

  • Write down one definition for each KPI and keep it fixed.
  • Collect several months of weekly data by grade before you set targets.
  • Put every KPI on one weekly dashboard, because they move together.
  • Compare against your own trend first and published ranges second.
  • Note what changed in the yard whenever a KPI moves.

Sources

  1. Energy and Environmental Profile of the U.S. Metalcasting Industry. U.S. Department of Energy, Office of Industrial Technologies (prepared by Energetics, Inc.). published September 1999. Sec. 4.6 Byproducts, "Melt Losses Are Generally Small" (PDF p. 51). Accessed September 30, 2026.
  2. Advanced Melting Technologies: Energy Saving Concepts and Opportunities for the Metal Casting Industry. U.S. Department of Energy, Industrial Technologies Program (prepared by BCS, Incorporated). published November 2005. Executive Summary, Exhibit 1 'Efficiency and metal loss for different furnaces' (PDF p. 5); source line DOE/CMC. Accessed September 30, 2026.
  3. Energy and Environmental Profile of the U.S. Metalcasting Industry. U.S. Department of Energy, Office of Industrial Technologies (prepared by Energetics, Inc.). published September 1999. Sec. 5.6, dross generation (PDF p. 61). Accessed September 30, 2026.
  4. Energy and Environmental Profile of the U.S. Metalcasting Industry. U.S. Department of Energy, Office of Industrial Technologies (prepared by Energetics, Inc.). published September 1999. Sec. 5.6, "Melt Losses Depend upon Furnace Used" and "Skim and Dross Diminish the Volume of the Melt" (PDF pp. 60-61). Accessed September 30, 2026.
  5. Energy and Environmental Profile of the U.S. Metalcasting Industry. U.S. Department of Energy, Office of Industrial Technologies (prepared by Energetics, Inc.). published September 1999. Sec. 3.6 cupola byproducts, melt losses (PDF p. 38). Accessed September 30, 2026.
  6. Commercial Vehicle Size and Weight Program. U.S. Department of Transportation, Federal Highway Administration, Office of Freight Management and Operations. Section on federal weight standards on the Interstate Highway System. Accessed September 30, 2026.

Published 2026-07-01.