Toll Refining vs. Per Unit Pricing for Scrap Catalytic Converter Value

The only constant in the catalytic converter processing industry is change. You might remember a simpler time when buyers would get converters with just three grading categories: small, medium, and large.

Now, there are well over 65 grading categories, with more than 20,000 serial number combinations. This ever-evolving industry comes with important challenges, like choosing between selling per unit or through toll refining.

Choosing what’s best for your scrap catalytic converters is choosing what’s best for your business. That’s why we created a guide to help you understand the differences between selling per unit or with a toll refiner, and to help you make the choice that best suits your operational needs.

What is toll refining?

In the catalytic converter processing industry, the toll refining process comes down to: the owner of scrap converters contracts the refining of their converters to another party for a fee. The refined platinum group metals (PGMs) extracted from the cores remain under the original ownership for final sale or disposition.

Processors will decan and crush converters to extract platinum, palladium, and rhodium and prepare them for smelting, where they’ll be funneled into the global economy.

How does a toll refiner evaluate the material it receives?

Once your catalyst material arrives at a processor’s facility, it is crushed and commingled into a fine, homogenous powder. A few samples of your material are taken to the lab to be assayed.

The sampling and assay process must follow strict guidelines to ensure that the real value of the material is returned to the recycler. For sampling, a crushed and commingled powder of all a supplier’s converter load must be homogenized before being sent to assaying.

When the sample has reached assay, it’s examined throughXRF benchtop or ICP machines to produce conclusive results. Once the amount is determined, you’re paid based on the metal content and current market prices.

Selling per unit

Selling by the unit means using a price list and/or a serial number catalog to determine catalytic converter value without assaying the material. That means accepting to pay or sell your converters based on an estimate and not the true value. Let’s take a look at why this is the case.

Converter lifecycle

It’s important to note that converters each have a unique lifestyle. The country/state the converter was originally sold in, environmental standards, mileage, converter material type, and vehicle use are some factors that affect the remaining precious metal loadings in a converter.

These variables can drag values down or up by 15% or more.

Toll refining is the answer

There’s a reason why toll refining is the gold standard in catalytic converter recycling. Refining catalytic converters takes into account your entire converter lot–and measures its exact amount of platinum, palladium, and rhodium.

This way, you’ll know your material’s true value, without taking a bet on it, or having to trust someone with just a sheet of paper.

And you’ll get paid substantially higher. The margin of error for toll refining is less than 5%.

On the other hand, the company that is purchasing by the unit without toll refining have to protect themselves from market fluctuations, reliability of information, and the knowledge from each of their buyers. This results in a payout difference that can be between 10% to 25% less than toll refining.

Choosing the right toll refiner

One thing to remember is that not all converter processors are cut from the same cloth. Here’s what you need to consider before partnering with one:

• How fast are their payment options?
• What are their minimum lot requirements?
• What are the percentages of reclaimed metals being paid back?
• Are there any other fees involved?

From an insider’s perspective, there is really only one way to get the most out of your catalytic converters. Toll refining.

Choosing the right catalytic converter processor means carefully evaluating your needs and understanding how a toll refiner fits into your business model.Learn more about choosing a catalytic converter processor.