WHAT DETERMINES SCRAP METAL PRICES

Information may not be reliable

Recycling scrap metal is on the increase with many people realizing the value scrap metal brings. Got old copper wirings, pipes, hub caps, aluminum fittings and the junk of home? Most good scrap dealers will have the correct equipments in place to help you reach a correct estimate of scrap metal prices, but it’s always better to be prepared first:

1. Markets change daily:

The commodities market has daily ups and downs. Subscribe to live feeds of commodities indices like LME, COMEX; chances are your local scrap dealer has already done so. You should keep an eye on them to have an average idea of what your stuff maybe worth. Conditions in the international markets and international relations have a huge effect on the metal prices. Got a strike in West Africa? Unrest in Europe? Both will upset the commodities market and cause fluctuations in the prices.

2. Condition of the scrap:

Clean, corrosion free scrap has higher chances of being accepted in the scrap yard metal. So, make sure you clean the scrap before you take it to the yard, or at least choose wisely. Whatever the conditions, that determines the prices, as a customer it can be difficult to really understand what your metal is worth but some factors are mentioned in this article to give you a fair idea.

3. Competition in the area:

There are locations which have higher completion i.e. no. of quality scrap yards are more. Take your stuff there; because many dealers’ means you get a fairer pricing of the stuff you’re selling. A monopoly market will not make you a great profit, as the dealer will offer you the lowest price possible and you will not be in a position to negotiate as you will not have any idea about the actual worth.

4. Know what you’re selling:

Do some research to understand what you are about to deal in. If you are selling copper, then make sure you have an idea of what copper is worth. If you are selling an alloy then make sure you know the alloy’s percentage.

5. Try taking in bulk amounts:

Dealers generally offer more when they are offered a bulk shipment rather than small pieces of equipments. That’s because it’s easier for them to process stuff in a batch, basic economies of scale at play.

6. Supply/Demand:

Supply and demand of metals work in the same way as of “normal goods”, the basic principle of increased supply with increased demand works here too. But, the price will obviously go down with such a graph. So, at times it’s a good idea to hold on to your scrap and where the market is headed next.

Understanding how scrap metal prices move will put you, the scrappers at a more knowledgeable position and give you a chance of asking for a better price from your dealer if the price offered is below the minimum as determined by the markets that day.