If you have been thinking about selling scrap metal or you have sold some in the past and are thinking about getting back into the business, there are a number of factors that you will need to take into account when pricing the scrap that you are planning to sell. Scrap metal is similar to stock – sometimes their prices are high, and sometimes they are low. 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.
In our Western society, metal is used for a huge amount of applications – construction, transportation, and consumable goods to name just a few of its common uses. Because of this wide and varied usage of metal, it has become increasingly difficult for suppliers to meet the demand – thereby, raising the prices of metal.
This is where scrap metal comes into the equation, however, as some people realized that most (if not all) metals can be recycled by melting them down and rolling them out. As these scrap metals are exactly the same as the brand new ones mined each day, there is no reason that they cannot be utilized in the applications listed above. In fact, because it is much cheaper to recycle metal than it is to mine for new ore, products constructed out of scrap metal tend to be much cheaper (and more affordable in some respects).
So, when the demand for metal grows, so do the prices that people will pay for scrap metal. Suppliers know that they can get a good price for scrap, so they are willing to pay the everyday man quite a nice price for whatever they’ve got. Of course, if there is more of a demand for certain types of scrap (for example, aluminium, brass or copper) the price for these metals are going to be much higher than those of other scrap.
The best way to see how much the scrap metal you are currently in possession of is worth is to check the internet. There are a number of websites purely dedicated to the most recent and up to date scrap metal prices for each country, so you can be sure that you are receiving the correct information for your location.
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. When you are next thinking of selling some scrap, do your research first to ensure you receive the best price possible.