NET TON vs GROSS TON

Fair Salvage has been purchasing scrap metal from our customers according to Net Ton.  Starting January 2, 2023, we will begin purchasing from our customers in Gross Ton.  So, what does that mean to you, our customer?

Actually, not a whole lot will be different.  If you think about how much your ferrous scrap is per pound, then it will make a lot more sense.  If sheet iron is $100 per Net Ton, we can break that into the price per pound.  Simply take the 100 and divide that by 2000 which is the weight amount in a Net Ton.  You should come up with 0.05.  So, each pound is priced at 5 cents.  Now, if you take that same 5 cents per pound and multiply that by the weight in a Gross Ton, which is 2240, you should arrive at 112.  So, the same 5 cents per pound is $100 per Net Ton and $112 per Gross Ton.

This is just a different way to look at how scrap metal is purchased.  We have thought long and hard before making this decision.  But, since Gross Tons is how the steel mills purchase, this will allow us to buy scrap the same way that we sell scrap.  We are always here to help explain Net Tons vs Gross Tons if you need us to.  We appreciate you being a loyal customer and we will continue making improvements to better your experience when you visit a Fair Salvage Company location.  Thank you!