5 Factors that Affect Scrap Metal Price
Have you ever wondered why scrap metal prices fluctuate on such a regular basis? There are a number of outside factors that come into play in determining scrap metal prices. Let’s take a look at some of the biggest factors in determining scrap metal price:
Supply and Demand
Like any business, the available supply of particular metals and the market demand play a strong part in pricing. If copper is abundant and nobody needs it, it’s going to be much less expensive than it will be during a building boom when everyone needs copper to provide wiring, plumbing and HVAC needs for new constructions.
Because it can be expensive to transport scrap a significant distance, your location is a big factor in how much you are paid for scrap metal. If you have heavier metals and no real market to sell them to, the price you’ll be paid goes down due to transportation and time constraints.
Are the scrap metals you have available of good quality? Is the metal alone or other material mixed in with it? If it takes more work to extract the desired metal, it increases the scrap buyer’s costs, lowering the price paid for the metal. Quantity comes into play here as well, with higher amounts of metals commanding a better price as the scrap buyer can take advantage of different markets.
If the weather or economy is good, there is more construction and manufacturing taking place. If more of these activities take place, there is more demand for scrap metals, and so the price increases. Conversely, if conditions are poor, the metal won’t bring a higher price.
Commodity Price Changes
As commodities on the free market change price, the price for scrap metals change as well. If copper prices drop a certain amount, the amount being paid for copper scrap will have a related drop in price. If it rises, scrap prices rise as well.
If you’ve got scrap metal taking up your business’ valuable operational space, why not sell it? With a client base that includes a range of businesses, we can offer you good prices, friendly service and the experience to help with whatever scrap life throws your way. Contact us today for more information on freeing up your workspace and capitalizing on your scrap metal.