The price that recycling facilities pay for scrap metal (by weight) depends on several factors, including the price of virgin materials, fuel prices, transportation costs, and more. For this reason, the price that we offer you for your scrap metal is constantly fluctuating in accordance with these other factors. In this article, we’ll talk more about the different industries that affect the value of scrap metal! If you’re looking to sell scrap metal in Southeastern Massachusetts, come see our team at Middleboro Recycling for the best scrap metal prices in the region!
The emergence of the renewable energy industry has created increased demand for metals like copper, lithium, manganese, and nickel. As the renewable energy market grows, it is projected to continue increasing demands for both virgin and recycled metals. As demand for metal continues to rise, the price that scrap metal recycling facilities are willing to pay you for metal will rise with it.
Just like with the renewable energy industry, the laws of supply and demand apply to metal suppliers. When the demand for metal exceeds the available supply, scrap metal prices will rise. If the demand for metal is less than the available supply, prices will fall. This applies to the scrap metal recycling industry because if metal suppliers have an excess amount of aluminum, for example, then they will be willing to pay less for your aluminum scrap. However, if demand for aluminum is higher than what they have available, they will be willing to pay you more for your scrap aluminum.
Virgin Metal Manufacturers
One of the biggest factors that affects the price of scrap metal is the virgin metal market. Virgin metal is metal that is brand new and has never been used before. When the cost of manufacturing virgin metal goes up, the price that facilities are willing to pay for scrap metal rises as well. When the cost of virgin metal drops, the value of scrap metal goes down. Scrap metal can be thought of as a substitute for virgin metal, so the scrap metal market follows the rules of the substitution effect.
Oil and Gas
One more factor that affects the value of scrap metal is the oil and gas industry. The scrap metal recycling process relies on fuel usage for melting down the recycled metals and transporting them to the final user. Typically, when oil and gas prices rise, recycling facilities pay less for scrap metal because it costs them more to melt it down and transport it to the buyer. When oil and gas prices fall, recycling facilities will pay more for scrap metal because their overall operating costs go down.
Contact Middleboro Recycling Center!
If you have any questions about scrap metal recycling or are interested in earning money for your junk appliances, equipment, and other scrap metals in Southeastern Massachusetts, contact Middleboro Recycling Center! Give us a call at (508) 946-2383 or fill out the contact form on our website, and a member of our team will get back to you as soon as possible!