Unless your melting equipment (furnace, charging system) is specifically adapted for the melting of loose chips, they could cause major problems when they are processed. These problems include restricted charging, increased energy consumption, longer melting times, greater oxidization loss, and increased slag. Melting material that is in a briquette form could prove to be very cost effective, as opposed to melting loose chips.
Do you have your own smelter or foundry? The scrap metal shredders sold by ARS are built with the highest face pressure in the industry. Higher face pressure means higher density, which leads to higher recovery of metal in a hot molten bath and higher value for that material. Smaller metal chips and turnings often burn away when melted.