Operations

R & G Metal Trading, LLC (RGMT) trades scrap in truckload and container load quantities from the east and west coast of the United States, Mexico, Guatemala, El Salvador, Honduras, Panama, Brazil, Peru, Colombia, Chile, and Paraguay.  Purchases are direct shipped to consumers in the United States, Mexico, Europe, Saudi Arabia, and Asia (China, Korea, Taiwan, Thailand, India, and Vietnam).  

RGMT provides supplying customers with technical and operational information to ensure efficient yard operations and to establish quality controls accepted by the melting consumer.  RGMT supplies effective market information daily to ensure suppliers reach the most profitable markets for their scrap metal inventories.  With RGMT as the trading partner, suppliers become dominant in their region of operations.  

RGMT payment terms are “CAD” (Cash Against Documents) but also provide advance payments to long-term suppliers.  Supplying customers see RGMT (Gary Armstrong, René Kvalheim, and staff) as partners in their profitability as dependable service and services deliver value.  RGMT’s business model is rooted in ethical practices that have been demonstrated in relationships for the past forty years.

 RGMT’s trading partners (consumers of scrap material) look to RGMT as a reliable and preferred source for their scrap metal raw materials. Their confidence is based on the knowledge, experience, and ethics of RGMT’s owners, René Kvalheim, and Gary Armstrong. Trading scrap metal is not an exact science. The traders of scrap metal must have working knowledge of the capabilities of the supplier as well as the requirements and demands of the consumer. R & G Metal Trading, LLC originated and evolved from a physical scrap processing yard and an aluminum secondary smelter. Challenges of both industries are clearly known by RGMT, and further, RGMT understands the responsibility to add value to each side of the transaction and to be an effective problem solver if discrepancies arise.

KOREA

Korea has been an active market for aluminum scrap types like Cast Aluminum (TENSE), Old Sheet (TAINT TABOR), MLC (TOUGH TABOO), Aluminum Borings (TELIC), Copper Aluminum Radiators (TALK), Aluminum Radiators (TALLEY), Auto Wheels, Litho Sheets, and 6022 used to make critical alloys like cylinder heads. 

The growth of auto production from Hyundai and Kia Motors has generated great demand for these aluminum scraps. RGMT has a dedicated agent in Korea who calls upon the aluminum smelters and De-Ox makers daily to delivery firm offers or to receive bids.

In addition to the Korean secondary smelters, RGMT markets 6063 Extrusion scrap (painted, 1% attachments, 5% attachments) to the Korean billet makers. 

In addition to Aluminum Scrap, Korea provides an active #1 Copper (Berry Candy), Brite Shiny (Barley), and Segregated Brass scrap market. RGMT’s Korean agent provides constant market information and negotiated sales when opportunities exist.

CHINA

China has been well recognized as the leading market for copper and copper related scrap metal for quite some time. Though the physical scrap landscape is changing inside China and currently being reinvented to meet new environmental standards, China is still the market to watch for high grade copper and brass.  RGMT provides copper hedging services for its suppliers and consumers. 

RGMT buys and sells copper based on a spread from N.Y. Comex.  When a seller (supplier) wants to lock in their selling price, RGMT makes an electronic sale trade on the N.Y. Comex. The final fixed selling price for the consumer in China is not established until the material is in China, then RGMT performs a buy-back on its N.Y. Comex position and fixes the physical price.

Taiwan, Thailand, Vietnam, Indonesia, Malaysia, India, Saudi Arabia, and Brazil

All these markets’ present opportunities from time to time as markets for non-ferrous metals ebb and flow from one region to another. RGMT exchanges market information regularly and makes sales when opportunities exist. 

United States

The markets for Prime Related scrap alloys (alloys made with only Prime Aluminum or a specific alloy) remain the best within the United States. RGMT has ongoing large volume monthly formula sales to Kaiser Aluminum, based in Los Angeles.  These formulas are based on the “Month Prior Average Price,” so RGMT performs London Metal Exchange hedging to be able to quote fixed spot prices to suppliers. 

RGMT also makes “spot” sales to SAPA in Spanish Fork, UT and Phoenix, AZ. For a supplier who has the discipline to make a quality package of 6063, 6061, 5052, or EC wire, United States’ markets remain best in the world. 

RGMT is a major buyer of UBCs (aluminum cans) from suppliers throughout west coast US, Mexico, Central America, and South America. RGMT’s four to five million pounds of volume makes it a valuable supplier to Constellium, Alcoa, Novelis, and Ma’aden Aluminum in Saudi Arabia.

Mexico

The world manufacturers of automobiles are targeting Mexico to be the base for plants to produce cars for North America. All major brands now have manufacturing plants in Mexico. As the auto production expands, the demand for secondary aluminum within Mexico will also expand.

Brazil

The major sheet aluminum maker that dominates the market in Brazil is Novelis. Novelis, Brazil presents a dynamic option for UBC and other sheet alloys when the freight rates are effective. Beyond aluminum cans, Brazil is now an effective market for copper and high-grade aluminum from their billet operations.