How to Conduct a Rail Scrap Sale in India

You can sell your used rails at a rail scrap sale in India in two ways - in bulk quantities or in small quantities. In bulk quantities, you can charge a fixed price. For example, you can sell one million tons of scrap at 215 $/MT, while if you want to sell five million tons, you should charge only 150 $/MT. Both of these methods are legal. A prime bank will issue you LC/MT700 or SBLC MT760 and issue you a payment invoice.

A Railway Scrap Sale is held for disposing off old and unused railway rails. The auction usually takes place on a fixed date and time and the conditions of the sale are read to each bidder. The auction is best conducted on the lot itself, with the Auction Conducting Officer moving from one lot to another. The Reserve Price is fixed by the Depot Officer, who considers the market trend, condition of the lot and the rates of previous sales when deciding whether to sell the lot.

The Railway Administrations have a detailed schedule for rail scrap disposal, which should be maintained under Group 98 of the State Railway Classification of Stores. This schedule should be prepared keeping in mind the potential users of the scrap and the market price at auction sales. The railways should also maintain a detailed scrap schedule, where different metals are scheduled under separate main headings. If possible, the schedule should be broken down into sub-headings describing the shape, size and form of each material.

Once a buyer submits a valid bid, they will be issued with a delivery order. In departmental auctions, this order is issued by the Depot Officer or by the Auctioneer. It authorizes the purchaser to take delivery of the scrap at the scrap yard. The delivery order also specifies the date by which delivery must take place. Sometimes, a delivery order is issued in installments.

The General Manager of the Railway appoints a survey committee to determine the best price for the scrap. The committee must then obtain the sanction of the competent authority. The Committee's recommendations must be documented on the survey sheet. The Controller of Stores must also receive the sanction of the competent authority before he can sell the articles. The articles can be sold to other railways, Government departments, or by auction.

The reserve prices for rail scrap sale in India are based on the condition of the scrap and the location of the Railway. The scrap is generally in a state of disrepair and is not reusable by the Railway. It includes ferrous and non-ferrous materials and various components of the Rolling stock. Scrap is a normal part of the Railways' operation and is estimated to be around six-seven lacks tonnes per year.

As a leading auctioneer in the rail scrap industry, you should know your legal position when holding bulk and small quantities of railway scrap. The prices of these materials depend on several factors. Whether the scrap is made of steel, aluminum, or sponge, the prices at which it is sold are highly dependent on the quality of the materials. Scrap is always preferable to sponge, as it requires less electricity to melt and produces higher ferrous yield.

Scrap prices fluctuate over time and across locations. In some areas, they are constantly changing, so scrap prices at auction are not necessarily indicative of their actual value. Prices are generally negotiable among buyers and sellers. Some auction sites update scrap prices, while others do not. You can also check scrap prices on the websites of scrap yards. However, make sure that you check scrap prices before you make a purchase.

To meet the import and export regulations of rails, the material must be free from shrapnel, ammunition, and chemical products. It must also be free from unwanted materials such as dirt, sand, or concrete. Rail scrap must be bundled neatly and properly secured with adequate lifting hooks. The quantity of each rail bundle should not exceed five metric tons. The cost of rail cutting is also included in the CIF price.

The Railway administrations must prepare a detailed schedule under Group 98 of the State Railway Classification of Stores. The scrap schedule should take into account the likely usage of the material by its purchasers and its value in auction sales. Different metals should be scheduled under different main headings with suitable subheadings describing the form of the material. Moreover, the scrap schedule should be sorted by weight.