Quote economics · editorial draft
Compare netback before celebrating a higher bid
A fictional two-offer example shows why yield and freight belong in the same calculation.
An explicit teaching example, not market pricing
Assume a fictional 20,000 lb load, 95% payable yield and $100 handling. At $0.10 per payable lb with $300 freight, net proceeds are $1,500: 20,000 × 0.95 × $0.10 − $300 − $100. That equals $0.075 per gross lb. None of these inputs is a current scrap quote.
A larger headline can still mean less money
A second fictional offer of $0.105 per payable lb, with the same recovery and handling but $450 freight, nets $1,445. It pays $55 less despite the higher quoted rate. The browser calculator reproduces the first result and rejects invalid inputs. It does not assess credit risk, taxes, payment timing or contractual disputes.
Make the quote basis explicit
Confirm whether quoted weight is gross, net, dry, recovered or payable and which deductions apply. The public PPI series supplies national monthly context only. Do not substitute its index level for a quote in this formula. The formula and examples here are original illustrative arithmetic; the source below establishes the public index's different unit.
Sources, checked November 11, 2026 (MT)
General educational material. Verify contract terms and source dates. Not legal, safety, tax or investment advice.