Scrap metal is similar to stock – sometimes their prices are high, and sometimes they are low. A lot of things are taken into consideration before a fixed price is established in the market. By understanding how scrap metal is priced, you will give yourself an advantage over other sellers by knowing when to sell and when to wait.
Type of Scrap Metal
The price of scrap metal is not the same prices. This is because scrap metals are classified into many types such as copper, stainless steel, ferrous metals, lead and others. Though all the scrap metals that you compile can be sold in a scrap metal yard, the prices the metals are likely to attract heavily depend on the type and class.
Quantity
The quantity of the scrap metal you intend to submit or deposit plays a major role in determining the price of the scrap metals. Generally, the more the amount of scrap metal you deposit, the higher the price of the metals will be. As a scrap metal dealer/collector, you should make it a rule to never sell your scrap metals in frugal quantities. Instead, keep hunting, compile or collect them, and sell them only when they are of significant volume. This will reap you better monetary benefits.
Location of the scrap yard
The location of a scrap yard indeed influences the price of scrap metals you intend to sell. Locations that are closer to ports and larger cities to send materials overseas to, will have less travel costs that someone inland. These locations closer to ports will generally be able to pay more money for materials.
Industry Demand
Whilst scrap metal prices can be affected by a number of factors (such as the purity of the metal, the quantity you are selling and the quality of the metal), the main determining factor is the demand for that particular type of metal. If the construction industry is slow the demand for steel and iron will go down and usually affect the price of the materials.
International Trading
This can be a large factor in the scrap prices across the globe. Countries like China and India who have a large amounts of imports of scrap metal can affect the scrap prices globally.
Time of Year
Just like the markets with the holidays, the time of the year greatly affects a number of industries including construction and automobiles. Different times of the year and weather can greatly affect the output of new products, thus bringing the demand lower and the scrap prices can change too.
These were some of the factors that influence the price of scrap metals you plan to sell. Try following them, and we are sure you will make better profits than before.