What Causes Scrap Metal Prices To Fluctuate?
Just like in almost every other industry, supply and demand affect how much any given piece of scrap metal is worth. However, in the scrap metal recycling industry, several other factors affect the price as well. In this article, we’ll go over some of the factors that may change how much a scrap metal recycling company will pay for materials.
Price Of Virgin Metals
The prices that scrap metal recycling companies are willing to pay for scrap metal are closely tied to the current price of virgin metals – or metal that has never been used or recycled before. The basic rule is that when virgin metal prices increase, the value of scrap metal goes up. When virgin metal prices decrease, scrap metal recycling companies are unwilling to pay as much for scrap, so the price falls. These rules generally apply to this industry because scrap metal is a substitute for virgin metals, so if the price for never-before-used metals goes down, there is no reason for scrap metal recycling companies to pay a premium on scrap metals.
Price Of Fuel
The cost of fuel has one of the most significant influences on the price that companies are willing to pay for scrap metal. This is because fuel – whether it be coal, natural gas, or electricity – is used to process the scrap metals so that they can be used again. When fuel costs are high, scrap metal companies will not pay as much for junk metals as when fuel costs are low. When you’re considering selling scrap metal, you should pay attention to fuel prices so you can sell your scrap metals for the best possible price.
Many scrap metal recycling companies ship out their products all over the world. For this reason, when transportation costs are on the rise, your scrap metal may not be as valuable to the scrapyard at that particular time. The same general principle applies to importation costs. If the cost to acquire metals goes up due to transportation costs or tariffs, domestic scrap metal becomes more in demand, meaning the price companies are willing to pay for it goes up.
Contact Middleboro Recycling Center!
If you have any questions about scrap metal recycling prices or are looking to recycle scrap metal in Massachusetts, don’t hesitate to contact Middleboro Recycling Center! Call us at (508) 946-2383 or fill out the contact form on our website. If you’re curious about what your scrap metal might be currently worth, check out our pricing page!