Top 5 Factors That Affect Scrap Metal Prices

scrap metal recyclingDo you have some scrap metal you want to sell? Several factors may influence the prices scrap metal buyers offer you. Metal Salvage Services Ltd lists the top five factors that affect scrap metal pricing:

Supply and demand

Supply and demand control every scrap metal transaction. If a particular metal has a high demand but low supply, it will inevitably be priced higher. Conversely, a metal that is readily available and in low demand is priced lower.

Quality and quantity

You may end up with a lower price if your scrap metal is covered in insulation, contaminants or corrosion. You will get a higher price if your scrap is clean and of high quality.

Also, your scrap service may offer you a better price if you are selling your scrap metal in bulk. Scrap metal dealers can give higher rates if they get scrap with lower overhead.

Location

Your location and the location of the scrap metal service may influence the price you get. You are likely to get a lower price if your waste metal has to be transported over long distances. You can also expect a lower price for the scrap if the metal you have is in low demand in the city where the dealer is located.

Time

Sometimes, the weather influences scrap demand, especially in the construction and automotive industries. If the weather is nice and the material is in demand, your scrap metal may fetch a higher price.

International trade

Scrap metal recycling is now a global phenomenon. What happens in countries that produce or consume vast quantities of scrap can affect local prices. Usually, changes in the Chinese and Indian scrap markets affect scrap metal buyers in other countries.

Scrap metal buyers buy virtually every recyclable metal. However, the dealers may buy the metals at different prices. The scrap services have to consider several factors when accessing the available materials. Contact a reputable scrap service to know more about pricing.