Wire Chopping Done Differently

Exeon takes a unique approach to wire chopping. The process that sets Exeon apart is that your material is run as a unique lot and when your lot is finished, the system is purged of all copper before the next supplier’s lot of material is started. In addition, the plastic that is recovered from Exeon’s process typically contains copper fines, and the plastic goes through a separate process to recover the copper. Although suppliers are paid based on the actual recovery, the recovery is estimated before the material is run and suppliers are asked to approve the processing of the material. The purpose is to ensure that both parties are in agreement in terms of what the expected recovery will be. Exeon does not guarantee the estimate, but the actual results are typically within plus or minus 5% of the estimate. Furthermore, Exeon employs a detailed system of checks to ensure an accurate recording of the recovery.

Since Exeon hedges its own copper, there is a lot of flexibility with establishing the Comex value. Suppliers may lock in a price at the time of placing an order, or leave it open priced. From the time the order is placed, Exeon requests that the material be delivered within 30 days and the discounts will be fixed. Once the material is delivered, the payment terms will start and there are usually no restrictions as to when a supplier can deliver their material as long as there are open delivery appointments.

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