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Business Development

Give copper a new life

Copper business can be very lucrative, depending on the price of copper in the market. The price trend in the market is increasing, good for copper producers and bad for the end users of copper products such as producers of cables, pipes, etc.

I will give you one glaring example, based on today's prices.

If a smelter acquires copper wire scrap Grade A, which implies a purity of at least 99.95% Cu.

Today's price of Copper wire scrap ranges from $7,500 to $8,000/MT CIF. About 1.1 to 1.2 tons of copper wire scrap Grade A is needed to produce one ton of copper cathode Grade A. The cost of processing copper wire scrap costs from $500 to $650/MT.

 

Taking average values, the calculation looks like this:

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  • Copper wire scrap - 7,750 $/MT x 1.15 = 8,912 $/MT plus processing costs of 575 $/MT

  • 9,487 $/MT cost of cathode produced.

  • Today's LME price is around 11,000 $/MT Ex-LME warehouse.

  • For non-branded cathodes, a discount of about 8% = 10,120 $/MT is given.

  • The production price from copper wire scrap is $9,487 $/MT

  • 10,120 - 9,487 = 633 $/MT net profit.

 

An average-sized smelter can process about 800-1000 MT of copper scrap per day, it is easy to calculate the profit that can be made from 500,000 to 1 million USD per day.

With higher purity copper wire scrap, better results are achieved.

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Business model: An agreement can be reached with many smelters, that you supply them with the input material copper wire scrap, pay them for their work in cash or give copper wire scrap for the value of their work, which we call business development. This business model pays off for the smelters because they are paid for their work in raw materials (copper wire crap) which they sell at the prices listed above.

How to Make Copper Cathode from Scrap: A Comprehensive Guide

 

Introduction:

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In this page, we will explore the process of making copper cathode from scrap. We will address three key issues: the manufacturing of copper cathode, the refining of copper scrap, and an understanding of what copper cathode is.

 

1. How do you make a copper cathode?

To make a copper cathode, follow these steps:

 

Step 1: Collection and Sorting:

Collect copper scrap from various sources, such as electrical wires, plumbing fixtures, and industrial waste. Sort the scrap based on its purity and composition.

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Step 2: Smelting:

Smelt the copper scrap in a furnace at high temperatures to separate impurities and obtain molten copper. This process is known as smelting

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Step 3: Electrorefining:

Transfer the molten copper to an electrolytic cell. Place a copper anode and a stainless steel cathode in the cell. Pass an electric current through the cell, causing copper ions to migrate from the anode to the cathode. This results in the deposition of pure copper on the cathode, which is the copper cathode

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2. How do you refine copper scrap?

Refining copper scrap involves the following steps

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Step 1: Collection and Sorting:

Collect copper scrap from various sources, similar to the process mentioned earlier.

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Step 2: Shredding and Melting:

Shred the copper scrap into small pieces and melt it in a furnace. This process helps remove any impurities present in the scrap.

 

Step 3: Electrolysis:

Transfer the molten copper to an electrolytic cell. Place a copper anode and a stainless steel cathode in the cell. Pass an electric current through the cell, causing impurities to dissolve into the electrolyte while pure copper deposits on the cathode

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Step 4: Solidification:

Once the impurities are removed, the molten copper is cast into molds to solidify and form copper cathodes.

 

3. What is copper cathode?

Copper cathode is a high-purity form of copper that is produced through the electrorefining process. It is a rectangular plate of copper with a purity level of 99.99% or higher. Copper cathodes are used as raw materials in various industries, including electronics, construction, and manufacturing.

 

Cost Structure of Copper Scrap → Cathodes

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1. Collection & Sorting

  • Costs include logistics, manual/automated sorting, and insulation removal.

  • High-grade scrap reduces downstream costs; mixed scrap increases processing expenses.

2. Smelting & Fire Refining

  • Energy-intensive stage: furnaces consume significant electricity or fuel.

  • Fluxes and consumables add to operating costs.

  • Typical recovery efficiency: 92–96%.

3. Electrolytic Refining

  • Electrolyte preparation (copper sulfate + sulfuric acid).

  • Cell operation requires continuous electricity input.

  • Labor and maintenance of cells, anodes, and cathode starter sheets.

4. Overheads & Infrastructure

  • Plant depreciation, environmental compliance, and waste treatment.

  • Packaging, transport, and warehousing of cathodes

Typical Tolling / Processing Fees

  • In many markets, tolling contracts separate the copper price from the processing fee.

  • Tolling fees for scrap-to-cathode conversion are often quoted in the $500–$650/MT range, but can rise if scrap is low-grade or energy prices spike.

  • Large integrated smelters may achieve lower costs due to economies of scale.

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Copper Wire Scrap → Copper Cathodes Processing Costs

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​Business Implications

  • Profitability depends on the spread between scrap purchase price and cathode sale price minus processing costs.

  • Sustainability advantage: recycling scrap into cathodes reduces reliance on mined concentrate, lowering environmental footprint.

  • Market flexibility: tolling allows traders to fix copper prices separately from processing, optimizing timing and hedging strategies.

 

Summary: Processing copper wire scrap into cathodes is capital- and energy-intensive, with costs usually $500–$650 per MT cathodes, highly sensitive to scrap quality and energy markets.

 

​​​​​​​​​​​​Notes

  • Energy costs (electricity for smelting and electrolysis) are the largest variable factor.

  • Scrap preparation (granulation, stripping insulation, sorting) strongly influences yield and cost.

  • Environmental compliance (waste treatment, emissions control) adds overhead, especially for low-grade scrap.

  • Tolling contracts often separate copper price from processing fees, with fees negotiated in the ranges above.

Scrap quality
Typical Recovery Ratio
(Scrap → Cathodes)
Processing Cost Range
(USD/MT Cathodes)
Key Cost Drivers
High-grade (clean wire, >95% Cu)
1.1–1.2 MT scrap → 1 MT cathodes
$500–$650
Lower sorting cost, minimal insulation removal, high electrolytic efficiency
Medium-grade (mixed wire, ~85–90% Cu)
1.2–1.3 MT scrap → 1 MT cathodes
$650–$850
More labor for stripping, higher slag losses, moderate refining costs
Lower sorting cost, minimal insulation removal, high electrolytic efficiency
1.3–1.5 MT scrap → 1 MT cathodes
$850–$1000
Intensive sorting, higher energy use, greater refining losses, waste treatment
copper-millberry-wire-scrap-1716097750-7186175.jpeg
Catodes.jpg

1,2 Ton of copper wire scrap Grade A for 1 Ton copper cathode Grade A 

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