What Is a Scrap Metal Dealer?

A scrap metal dealer is a business involved in buying, selling or handling scrap metal. This can include metal recycling businesses operating from a licensed site as well as mobile collectors.

In England and Wales, businesses carrying on business as scrap metal dealers must be licensed by their local authority under the Scrap Metal Dealers Act 2013. There are different requirements depending on whether the business operates from a site or as a mobile collector.

For anyone selling scrap metal, using an established, properly licensed dealer helps ensure the material is handled through a legitimate and traceable route.

What Does a Scrap Metal Dealer Do?

The role of a scrap metal dealer can vary considerably. Some collect metal, while others operate recycling sites where different types and grades of metal can be received, assessed, separated and prepared for further recycling.

Materials handled can include ferrous metals such as steel and iron and non-ferrous metals including aluminium, copper and brass.

At Reclamet, scrap metal forms part of our wider recycling operation in Birchington, Kent. We accept suitable ferrous and non-ferrous metals from individuals and businesses and also provide commercial scrap metal collection for suitable quantities.

Do You Need a Licence to Deal in Scrap Metal?

Yes. In England and Wales, a business carrying on business as a scrap metal dealer must hold either a site licence or collector’s licence issued by the relevant local authority.

The legislation also places requirements on dealers concerning matters such as verifying the identity of people supplying scrap metal and maintaining records of metal received.

For the current requirements, see the official GOV.UK guidance on scrap metal dealer licences rather than relying on individual recycling businesses for legal guidance.

Can You Be Paid Cash for Scrap Metal?

No. Scrap metal dealers in England and Wales are prohibited from buying scrap metal for cash. Permitted payment methods include electronic transfer and non-transferable cheque.

What Should You Look for When Selling Scrap Metal?

Before selling scrap metal, it is sensible to check who you are dealing with, whether they hold the appropriate licence and how your scrap metal will be handled.

A reputable dealer should be able to identify the business clearly, operate under the appropriate scrap metal dealer licence and follow the required procedures when receiving and paying for scrap metal.

For a site-based dealer, the licence must be displayed prominently at each site identified on the licence.

What Is the Difference Between a Scrap Metal Dealer and a Scrap Yard?

A scrap metal dealer describes the person or business dealing in scrap metal, while a scrap yard or metal recycling site is the physical location where metal may be received, sorted and processed.

Not every scrap metal dealer therefore operates in exactly the same way.

If you’d like to understand what happens at a recycling site, read our What Is a Metal Scrap Yard? guide.

Selling Scrap Metal to Reclamet

Reclamet accepts a wide range of ferrous and non-ferrous scrap metals at our recycling centre in Birchington, Kent.

Businesses producing suitable quantities of recyclable metal can also use our commercial scrap metal collection service, with options including metal skips, bins and collection of larger or unusual metal items.

For the metals we accept and details of our recycling services, visit our Scrap Metal Recycling page.