Scrap metal is highly desirable across a number of different industries, and it really comes as no surprise to find out why. Using scrap metal is undeniably the cheaper alternative to mining virgin ores. What’s more, recycling also helps to conserve finite resources, along with all the energy used in the processes used to extract these ores and process them. Consequently, scrap metal recycling not only proves as the most cost-effective solution, but also the most sustainable one!
Since metal can be recycled again and again without any change to their properties, there’s virtually no reason at all why any company dealing with metal on a regular basis would pass up the opportunity to use scrap metal. Through using recycled scrap metal, they would be able to make more sustainable business decisions, whilst also saving themselves some money in buying resources.
Many businesses are pleased to find that they can exchange their unwanted or unused scrap for cash when they turn to a scrap metal dealer. However, you may have no idea how the value of your scrap metal is actually determined. Well, in this article, we’ll help to enlighten you by going through 5 of the most prominent factors that affect scrap metal pricing:
Quality can have quite the impact on the amount that you’re offered in exchange for your scrap. So, if your scrap metal looks a little dirty or has been tarnished by corrosion, your scrap metal dealer will need to put in extra effort to have the scrap metal materials cleaned up. This may result in you getting offered a lower price in exchange for your scrap.
Obviously, the amount of scrap that you have to offer is also to determine how much you’re offered in exchange for it. The more materials you have to sell, the higher you can expect the rates offered for your scrap metal to be. Of course, different types of metals are also valued higher or lower than others, so you can expect differing prices depending on what types of scrap metals are in your stash. For instance, copper is one of the most valuable scrap metal materials out there, so if you’ve got a high amount of copper in your scrap heap, you can probably expect a higher rate.
3. Time of Year
The time of year can also have an impact on how scrap metal is priced. For instance, at some points during the year, the metal from virgin ores may become less accessible, meaning that the prices of scrap metal would increase. This ties in with our next point:
4. Supply and Demand
The rule of economics is that high demand + low supply = higher prices. The same applies in the scrap metal industry. For example, if business is slow in the construction industry, there would be a lesser demand for metal materials, meaning that the prices for scrap metal would also go down. On the other hand, if business is booming and industries and trying to get their hands on all the metal materials they need, the value of scrap metal would be driven up.
3. International Trade
More and more countries and becoming involved in the scrap metal industry, with China and India being two of the biggest importers of scrap metal materials. Of course, changes in the market in any of these countries could have an impact on scrap metal pricing in your own backyard. Want the best price for your scrap? At Allied Metal Recyclers, we’re passionate about conservation and sustainability. That’s why we want to provide you with the highest value in exchange for your scrap metal; so that we can encourage more businesses and individuals to recycle their scrap instead of throwing it away. With the latest technology at our disposal, we can always promise you the most competitive rates. So, if you’re wanting someone to take unwanted scrap metal off your hands, be sure to contact us today!