The scrap metal industry can be competitive. You’ll find the prices fluctuating at certain times of the year because they are influenced by global events and other factors, causing the value of scrap metals to vary and change significantly—even on a daily basis. Many factors will affect the value of scrap metals, and if you’re selling, it’s important to keep track of them to find the most competitive, if not the highest, offers.
Knowing the factors affecting scrap metal prices is a good start in determining the best time to sell. Here’s an overview of the most critical things that influence the value of scrap metals.
Quantity and quality
Scrap metals are likely to fetch a higher value when sold in good or acceptable condition and in high volumes. You can expect a low price if the metal is rusty, covered with insulation, has residue, or mixed with other metals. That’s because more effort and time will go into organising and cleaning it. You may also want to bring a lot of scraps to the scrap merchant to increase the offer you’ll receive. You might be able to negotiate a higher price for a truckload, unlike when you bring only a few pounds of metal scraps.
Supply and demand
The law of supply and demand also applies to scrap metal prices. High demand with low supply ensures a higher price than when demand is low and supply is high. Most scrappers will wait for demand for certain scrap metals to rise before selling so as to get a higher price.
Season
Scrap metals increase in demand during the warmer months. Conversely, demand decreases in the colder months because construction and manufacturing industries slow down in the winter.
Geographical location
Where you live can determine the value of scrap metal. Most local scrappers collect and separate the metals and then bring them to other cities or yards for processing, recycling, and sale. If you’re in a place that requires long-distance travel, your scrap metals may fetch a lower price.
Likewise, the cost of doing business in your city or region can affect the value of scrap metals. Lower prices are expected in cities with higher costs for doing business, even in areas with plenty of local competition.
Production and energy costs
Many scrap yards look into production and energy costs when determining scrap metal prices. High processing costs because of expensive fuel may decrease the price.
International trade
China and India are prominent importers of scrap metals, and their changing demands can impact the value of the materials.
Check the prices with us.
Stay up-to-date with scrap metal prices by calling Metal Force Recycling at 0403 191 732. We’ll give you a competitive quote for your scrap metals. We deal in all kinds of ferrous and non-ferrous metals in Sydney. Our strong international and domestic exports and trades allow us to pay the best prices for unwanted scrap metals, including scrap and wrecked cars.