Did you know that one of the reasons why scrap metal dealers don’t show the prices of metal online is because they are constantly changing? The price of scrap metal changes on an hourly and daily basis which is caused by factors such as supply and demand, markets and seasonality. In this article, we’ll take a look at some of the factors that influence the price of scrap metal and aim to give you an insight into our industry.
How often does the price of scrap change?
This one all comes down to the market supply and demand and the current trade prices. What this means is that the price of scrap can change daily and even hourly depending on the current market conditions. A good idea is to phone a scrap yard prior to collection to see if they’ll quote you a fixed price for your scrap metal. While you could lose out if the value of the scrap goes up, you’ll be protected if the value goes down.
Daily changes
There are a few factors that can cause daily or even hourly changes to the price of scrap metal. One of the most common of these is where there is a surge in manufacturing in countries such as China or India or other international markets.
Weekly
Where the markets are buoyant weekly price changes are the most frequent with pricing trending over a period of several weeks. Again as with any type of scrap metal, an increase in one type of metal does not necessarily mean that all metal prices will increase.
Monthly
In a steady market, the price of scrap metal can remain relatively fixed for weeks at a time and only slightly increase or decrease on a monthly basis. This generally happens when there is either a set demand or during periods of low demand for scrap metal.
What are the top factors that affect the price of scrap metal?
There are lots of factors that contribute to the price of scrap metal but some of the top factors that are used to calculate the current value of scrap metal are below. Individually or combined these factors are used by scrap metal dealers such as Aussie Scrap when giving you a quote for the value of your scrap.
Market Price
The price that metal is traded on the market is one of the things that has an effect on the overall price of scrap. Market prices are usually a lot higher than scrap prices as this is based on metal that has undertaken the recycling process and the cost of the raw material to manufacture new products.
Industry Demand
Electronics, construction, automotive and technology are just some of the industries which can have an impact on the price of scrap metal. For instance when construction is slow then there is less demand for steel and the price is lower than when lots of commercial buildings are being built.
Location
Where the scrap yard is located will have a bearing on the price of metal. Scrap metal dealers that are located near large cities, transport hubs and ports will have lower transport costs than inland scrap yards and so their prices will generally be slightly higher.
Quantity
A factor that many people fail to consider is the quantity of material that an individual yard recycles. Those that specialise in certain types of scrap are normally able to offer better prices as they deal in more quantities of these materials and so can get better rates for them.
Time of the year
Yet another reason for the changing price of scrap metal is the time of year. Bad weather can have an impact on industries such as construction while in the automotive industry a poor year of sales can have a knock-on effect on the price of metals. Low demand caused by the low output of metal products also works to bring down the value of scrap metal.
International trade
Countries such as India and China which import a large percentage of scrap metal can cause the markets to rise and fall drastically based solely on their usage. The metal is used in the manufacturing with ferrous metal being the most imported by both China and India.
How to get the best price for your scrap metal
If you are looking to get the best price when selling your scrap metal then we’d love to speak with you. Based in Plymouth, Aussie Scrap specialises in commercial, business and trade scrap metal and have helped hundreds get rid of their scrap metal. While it is never possible to predict when the best time is to sell scrap metal at Aussie Scrap we’ll always aim to give you the best price for your scrap when compared to our competitors.
Generally speaking, metals which have not been contaminated with other materials hold more value than those which have been mixed with other materials. Also copper is far more valuable than steel for instance. If you’d like a free, no-obligation quote then we’d be happy to help so please get in touch with us today.