Hedge the Metal in Your Scrap
Scrap isn't a separate commodity — it's copper, aluminum, or zinc that needs to be recovered. Know your metal recovery % from physical assay reports, then hedge that metal content on the LME or MCX using Novaex.
How Scrap Hedging Works
Scrap metal contains recoverable base metal — the percentage varies by grade and is determined through physical assay reports. A batch of #1 Copper scrap might assay at 99% copper. Zorba aluminum scrap might yield 92% aluminum after processing. Galvanizer's dross might contain 55-70% recoverable zinc.
Once you know that percentage, the hedgeable metal content is straightforward: 100 MT of scrap at 92% recovery = 92 MT of hedgeable metal. You then hedge that 92 MT using exchange futures — selling the equivalent lots on the LME or MCX to lock in the base metal price for the recoverable portion.
Novaex helps you execute this workflow: calculate your hedgeable tonnage, select the right contract prompt, manage the position alongside your other metals, and track P&L in real time. Try the free calculator below to see how it works.
Scrap Hedge Calculator
Enter your scrap details and metal recovery percentage to see an indicative hedge recommendation. Use this as a starting point — always verify with independent assay reports.
Scrap Hedge Calculator
Prices as of April 1, 2026 via LME — indicative only
Metal-Specific Scrap Hedging
Deep-dive into hedging strategies for each base metal scrap category.
Why Hedge Scrap With Novaex?
Purpose-built tools for scrap traders and manufacturers who need to hedge the metal content of their scrap holdings.
Recovery-Based Hedge Sizing
Enter your metal recovery % from physical assay reports and Novaex calculates the exact LME lots needed to hedge your scrap position.
Multi-Metal Position Management
Track hedges across copper, aluminum, and zinc scrap in a single view — unified P&L regardless of how many metals your operation handles.
Margin & MTM Visibility
Real-time mark-to-market on your exchange hedges with margin alerts — so you're never surprised by a margin call on scrap hedge positions.
LME & MCX Contract Access
Hedge on the exchange that matches your pricing — LME for international scrap or MCX for Indian domestic markets.
Frequently Asked Questions
Hedge Your Scrap Metal Exposure
Calculate recovery-based hedge sizes, place LME or MCX hedges, and manage scrap positions alongside your other metals — all in one platform.