Margin contract — daily rate with fixed margin
Do you want to follow the market but still be in control? Then Skrotify's margin agreement is the right model.
Here you get a dynamic scrap price that follows the daily current commodity price (LME + scrap index) — but with a fixed margin, e.g. -12%.
This means that you get a new updated price every day, but with full transparency and stable calculation over time.
Here's how it works:
Formula:
Scrap price = Commodity price × Purity × (1 - Margin) - Costs
Examples:
- Raw material price: SEK 10,000/ton
- Purity: 95%
- Margin: -12%
- Scrap price: (10,000 × 0.95 × 0.88) - costs = SEK 8,360/ton
The price is updated daily in your Skrotify Portal — transparent and automated.
Advantages of Margin Contracts:
✅ Follows the market's upward movements
✅ Easy to explain & budget
✅ Transparent margin — no hidden fees
✅ Daily price notification via portal or email
✅ Applies to selected scrap grades, e.g. copper, aluminum, cable
🏗️ Especially suitable for:
- Construction companies with ongoing scrap flows
- Electrical & Plumbing Contractors
- Municipalities that want market logic
- Industries with running spills
🔧 How do I sign margin contracts?
- You select scrap classes and volume range
- We propose a margin based on processing costs and logistics
- You authorize and sign digitally directly in Skrotify Portal
- The daily rate is calculated automatically every morning Monday - Friday — and is available in your portal
