Scrap metal prices shoot up whenever the cost for virgin or untreated metal price increases. A rise in metal prices means scrap prices should go up. However, it may not be the case with every recycling plant or scrap buyer in your area. This is because there are various factors that contribute to metal prices.
Scrap metals are used in the largest industry around the world, construction. Every other industry relies on the construction industry on a global scale to create their storefronts, warehouses, etc. Manufacturers of steel products keep an eye on what kind of scrap is available around the world. This is because there is a limit to virgin metal, and as time moves on, we have less new metal and need to rely on recycled metal. Demand frequently increases.
Supply and demand
Supply and demand have the largest impact on prices. For example, aluminum in great demand for its multiple uses in accessories like phones, cars, batteries, electronic chips, motherboards, bikes, oil tanks, etc. Its increasing demand has made its prices higher over time. Likewise, its scrap cost will remain higher than other metals. Copper is also an expensive metal for its energy-specific uses. As supply and demand fluctuate so do their scrap prices.
How Timing Affects Scrap Prices
Time is a surprising yet inevitable factor for metal pricing and subsequently affects the scrap industry. In fair weather demand for metals is high. Fairweather means the logistics of moving metal is easier and quick from the factory to the end-user. Throughout the pandemic, shipping issues have caused many issues in supply chains. Closed manufacturing plants, issues with shipping goods, and other issues drastically impacted both metal and scrap metal prices. As the world returns to normal we return to a situation where industries all need metal, and need it quickly.
Foreign or international markets like China, Canada, and India can make an enormous impact on virgin and scrap metal prices. The nearby markets suffer a lot due to changes in the demand situation. More demand means better prices and vice versa. Even when you are selling to a local scrap recycling company, prices may be impacted by international trade.
How Scrap Quality Affects Price
If the scrap is rusted, corroded, or has oil residues, the general trends are that you will get a lower price for it. This is due to the reason the scrap yards will spend time and money to clean it for recycling and processing. Now, you can add the cleaning cost to get a better price for a clean scrap.
Sell Scrap Metal in Middleboro
Increases in metal cost will give way to a rise in scrap metal costs. Whether you are a new or an old scrapper, you may have noticed the prices of metal fluctuate more or less every day. So keep a regular tab on the prices to ensure you buy or sell at the right cost. Give us a call for our current prices and to ask any questions about our services.