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A scrap yard is place that buys and sells scrap metals. Scrap yards can also be referred to as scrap dealers and scrap processors. A scrap yard’s purpose is to gather scrap metals from several sources (e.g., construction companies, individuals, auto shops, etc.) and package the material in order to sell them to different refineries around the world. Scrap yards will buy multiple loads of different metal types until they obtain enough of each metal to sell by the truckload to refineries.
Think of a scrap yard as a broker who gathers all the scrap metal from individuals and companies. Refineries will form contracts with reputable scrap dealers to purchase the scrap metal in bulk. The people who bring in the metals to the scrap yard are the suppliers of scrap metals and the refineries are the scrap yards clients. To understand more about how scrap metal is bought and sold by scrap yards check out How is Scrap Metal Bought and Sold by Scrap Yards blog post.