Selling scrap metal is an effective way to make quick cash for homeowners. Many contractors also recycle scrap metal from job sites as well as from old equipment. If you are new to selling scrap metal, you may wonder what steps you can take to maximize your take home money. Organizing and cleaning your scrap metal is an effective way to get the most for your metal. But another thing to consider is the cost of the metal. Scrap metal prices fluctuate frequently and local yards often are competing against each other to offer the best prices.
What Determines The Price Of Scrap Steel?
Steel and other ferrous metals (metals that contain iron), are commonly sold at scrap yards all over the country. Steel prices rise and fall mainly due to supply and demand. If there is a demand for recycled steel the price will usually rise because the scrap yard can sell the metal at a higher cost. But if there is too much-recycled metal coming in, the metal sells for less. One large factor is construction projects. When the economy allows for an increase in local construction projects, the need for scrap metal rises.
How Tariffs And International Trade Affect Scrap Metal Prices
Additionally, scrap metal prices rise and fall due to international trade. The United States often imports metals from other countries, as well as sell metal to other countries. Additionally, scrap metal can be traded between nations. China is a big influencer in the scrap metal industry. Changing trade laws as well as international supply and demand can affect your local scrap metal yard’s prices. Even if they are not directly involved in international trade, a steep rise in international tariffs or drop in international demand for metal will increase the demand for domestic yards to provide recycled metal and increase what you can get for your metal.
How Fuel Prices Affect Scrap Metal Prices
Fuel prices also have a large influence on scrap metal prices. When fuel prices increase so does the price of recycling scrap metal. Recycling metal is dependent on fuel prices. Because fuel is used to melt down the metal, the cost of fuel will directly impact the price a scrap metal yard is willing to pay for metal.