You can earn a lot by disposing of your metal junks wisely through recycling. Many organizations prefer purchasing scrap metals from scrappers to buying new raw materials from the mining industry. Scrap metal companies are also buying metal, including other related materials from scrappers and individuals, for the purpose of reselling and recycling.
Whether you’re considering selling your scrap metal or you’re a professional scrapper, it’s not easy to determine how much your scrap metal is worth as the price fluctuates constantly. There are several factors and criteria affecting scrap metal pricing today. The market is prone to volatility, making it tricky to predict. However, if you understand how the scrap metal market works, you can take advantage of the best moment to sell your scrap metal.
Here’s a list of factors that affect scrap metal pricing today:
1. Demand And Supply Of Metal
The rule of supply and demand applies to every industry, including the metal recycling industry. This is often the main factor affecting the prices of scrap metal. When demand is high and supply is low supply, the price value of metal will increase for that period, as people will be competing to have it. If there’s low demand and a high supply, the price value is expected to decrease.
Hence, the best time to get the most for an old clunker is when there’s high demand and low supply of metal. You need to watch out for this period to get a higher price for the sale of your scrap metal at the scrap yard. Learn to follow the trend of metal demand and supply so you’re able to determine the current scrap metal value successfully.
2. Quality Of Scrap Metal
One common factor that affects the price of your scrap metal is its quality. The higher the quality of your metal, the higher the price you’ll be offered. Many items that appear metallic physically don’t always consist only of metal. Some are covered in insulation, corrosion, or residues, making it a mixture of metal and other materials. These impurities will reduce the value of your scrap metal and prevent you from fetching a premium price. The decrease in value is due to the scrap company needing to spend more time and labor to clean off the foreign materials so that they can be appropriate for recycling.
Therefore, if you have the energy and time to clean your scrap metal thoroughly, do so before taking it to the scrap yard. Do your best in making your scrap metal be in the best position to be recycled. Such scrap metal will be graded as a high-quality metal, resulting in better pricing for you.
3. Volume Of Scrap Metal
The volume of the scrap metal you’re selling will influence the price you’ll be given. The size and weight of your scrap metal are primary determinants of the volume of your metal. However, the quality of the metal often influences its volume too. A high volume of top-grade metal is beneficial to a recycler or scrap yard. This will ultimately equate to a higher price for the seller. Hence, ensure you have a significant amount of scrap metal for sale before approaching a buyer.
Also, if a scrap or recycling company can get a large amount of scrap metal from you at once, they’re inclined to offer you a higher price. This is a common practice in the metal industry. Do comprehensive research on the prices different scrap companies offer before approaching deciding on one. With this, you’ll be able to get the best price for the metal scrap accumulating in your home.
4. Location
The distance and the cost of doing business in your location are also determinants of metal pricing. If you’re dealing with a scrap yard that isn’t close to large cities, ports, or industrial areas, you’re likely to get a lower price for your scrap metal. This is because the cost to transport the metal to areas where it will be needed will factor into the price they’ll pay you. Generally, scrap companies in industrial locations will be able to pay a higher price for scrap metal.
Likewise, your distance to a scrap company will affect the metal pricing. The cost of transporting the scrap metal from your place to the company will affect how much you’ll be offered as metals are difficult to transport.
Conclusion
Now that you’re well-versed in the factors affecting the prices of scrap metal, you can better predict how much a scrap company will pay you today. Keeping up with the price changes can be overwhelming, but having a foreknowledge of how the pricing works will give you a better chance at assessing the right time to sell your scrap metal. Knowing these factors will also help you determine if you’re getting the right price value from the scrap company you’re transacting with.
