In many industrial production processes, such as turning, milling, and drilling, iron chips are generated. These chips can often be recycled and reused. Traditionally, cast iron parts are processed by specialized companies in a supply chain. However, a growing trend is for initial and final machining to take place directly at the foundry. Some machining companies sell chips as scrap, while others use them as raw materials in their own furnaces or sell them to recycling companies.
Cast Iron Chips: Characteristics and Market Potential
Compared to steel chips, cast iron chips do not have a formal grading system, although they are often sorted into different quality levels for practical use. Cast iron chips typically sell at higher prices than steel chips and are mainly used in foundries, steel mills, or chemical processing plants. As a result, collecting, storing, and selling cast iron chips is usually handled separately from other scrap materials.
Loose cast iron chips have several disadvantages. Compared with larger metal scraps such as sheets or foundry scrap, loose chips are sold at lower market prices due to lower density and handling challenges.
Storage and Logistics Challenges
Loose chips have a bulk density roughly four times less than solid scrap. Large containers are required to collect and transport chips both inside and outside foundries. These containers must be frequently emptied and occupy significant factory space. Transportation by truck is also costly. Moreover, since cast iron chips are often contaminated with cooling lubricants, proper storage measures are needed to prevent groundwater contamination. This typically involves sealed containers and surfaces, which increase storage and logistics costs.

Quality Issues of Loose Chips
Because of their high surface area, loose chips are prone to corrosion, making them less valuable. Chips contaminated with cutting oil or water also have lower market value. Gel-like contaminants make chips difficult to store as they can corrode quickly and bind into dense clumps.
Challenges in Smelting
In foundries, wet chips cannot be used directly without pre-treatment. Due to the small size of chips, even treated and dried chips perform worse than solid metal materials. Unless the melting equipment (furnaces, casting systems) is specifically designed for loose chips, they may cause problems during smelting, such as limited feed capacity, higher energy consumption, longer melting times, increased oxidation, and more slag formation. Electric arc furnaces are the only equipment that can handle loose chips but require auxiliary devices such as injection systems. These factors affect melting efficiency and outcomes to varying degrees.
Briquetting: Processing and Smelting Technology
Successfully compressing iron chips requires two key prerequisites: reliable processing machinery and metallurgical knowledge of briquetting technology. If briquettes are intended for sale, a strong marketing channel is also necessary.
Machine Requirements
High-quality metal briquetting machines allow fully automated 24/7 operation with minimal power consumption. Maintenance and spare parts are predictable, and the briquettes produced meet expected quality standards. This ensures efficient processing and high-density output.
Briquette Quality Requirements
- Briquettes must be compact to prevent damage during loading and unloading.
- They must have good brittleness resistance (high strength and wear resistance against cutting chips).
- Residual moisture or oil should be minimal (<5%, ideally <2%).
- High compression strength is required to achieve optimal density.
Market Development
Analysis over the past decade shows that many suppliers of briquetting machines have exited the business due to design limitations that fail to meet customer needs. Customers who purchase low-quality machines experience substandard briquettes. Beyond machine design and structure quality, suppliers should provide comprehensive services, including fast spare parts delivery, after-sales support, and auxiliary equipment such as storage and dumping devices. Customers should be able to select machines of different sizes and capacities based on required pressure and speed to achieve optimal production. Oversized equipment unnecessarily increases investment costs.

Advantages of LEEXIN Hydraulic in Metal Briquetting
LEEXIN Hydraulic Machinery Co., Ltd. has over 30 years of experience in mechanical intelligent manufacturing and hydraulic system solutions. Our expertise in metal briquetting machines allows us to produce high-quality briquettes with optimal density, consistent size, and minimal residual moisture or oil.
- Advanced R&D Capabilities: Our team can develop customized briquetting solutions for iron chips, metal chips, wood and paper chips, or pin briquetting applications.
- Energy-Efficient Systems: Our hydraulic stations and systems are designed to minimize energy consumption while maximizing compression efficiency.
- High-Quality Machinery: All machines are built to operate 24/7 under full load with low maintenance costs, ensuring stable and reliable production.
- Comprehensive After-Sales Support: We provide spare parts, technical guidance, and auxiliary equipment like storage and dumping systems to optimize production lines.
- Environmental Focus: Our solutions promote recycling, reduce waste, and support sustainable production practices.
With these strengths, LEEXIN Hydraulic is committed to helping customers achieve higher production efficiency, better briquette quality, and lower operational costs in metal recycling and briquetting operations.
