Scrap metal trading the efficient way: anywhere, any time
The current opaque and volatile scrap metal(opens in new window) market mostly works in close proximity to the seller, leading to fewer options for selling and inefficient trade routes. In a bid to turn this black box industry around, the EU-funded Schrott24(opens in new window) project developed a platform that offers Europe's largest buyer/seller network as well as dramatically shortened supply chains for both parties.
Digital technology facilitates scrap metal trading
“Our platform utilises modern web technologies to digitalise and automate a large part of operations in the metal recycling industry, rendering them more transparent and efficient,” notes project coordinator Jan Pannenbaecker. “The software leverages proprietary algorithms and data analytics to maximise returns for the buyer and seller by monitoring and predicting prices in scrap metals and preventing unfavourable last-minute changes.” Sellers simply select the scrap material they want to trade, choose a transport method and wait for pickup. Thanks to a fast but thorough process, Schrott24 guarantees quick and secure payout. “Even with small delays due to the COVID-19 pandemic, we achieved all our primary objectives and have right now a functional end-to-end platform with a large number of users that exceeds 10 000,” adds Pannenbaecker. The participants address the whole metal recycling cycle: sellers, buyers, logistics and traders. “We have built custom interfaces for all participants. Using machine learning, we built a model that can accurately predict whether our buyers are interested or not in a certain material depending on its type and condition,” says Pannenbaecker. The infrastructure was scaled up to allow millions of concurrent users to access the platform.” “Our platform underlines the need to foster trust, transparency and ease of doing business in the metal scrap industry. It is now highly autonomous, allowing us to move towards a fully open marketplace in the future,” underlines Pannenbaecker. After some very successful years in the B2C market, Schrott24 took a huge step forward this year by launching their B2B focused brand Metaloop(opens in new window). With separate brands for both markets, their teams can place focus on the respective needs and better react to market changes. This is not only helping to further develop their technology, but also enables Schrott24 to offer better solutions to their user base.
How the online trading platform works
Metaloop offers 360-degree solutions for all players, effectively increasing revenue while saving tonnes of CO2 with each transaction. By shortening the supply chain, Metaloop dramatically reduces mileage for the material. This not only leads to less trucks on the streets, but also to faster deals and less downtime for the customer. To round their portfolio off, Metaloop also offers trade financing, among other services, to their international customers. The Schrott24 platform provides an almost real-time overview of the scrap metal market, offering information on the kind of materials in demand, the order quantities and the delivery destination. “We purchase materials from a seller, namely from an industrial manufacturing company, or derive them from a demolition project, organise the logistics process, oversee the quality control process and process the payment. We act like contractual partners of the sellers and use technology to orchestrate the resources available on the market,” explains Pannenbaecker. “By eliminating redundant steps in all processes, we saved over 216 000 CO2 tonnes from 2018 to 2022. We estimate this number will double over the next 4 years. We have expanded our business addressing the whole of Europe, and particularly Spain,” Pannenbaecker concludes.
