As you know, the price of scrap metal changes over time. That is why what a company pays one day for a certain metal is not the same as what it would pay the day before or the day after. This is because its value fluctuates depending on different economic, social, political, logistical and industrial factors.
In this blog post, we explain each of the factors that influence the price of scrap metal.
Factors influencing the price of scrap metal
Raw materials market
The first thing to consider is the price of pure metal on commodity markets. The best known is the LME or the London Metal Exchange. This price will depend on fluctuations in the world economy, industrial production and trade policies that regulate scrap trade.
Supply and demand
The capitalist economy is based on the law of supply and demand, and the price of scrap metal is no exception. If there is an increase in industrial production and construction activities, for example, there would be a high demand for metals and therefore the price of scrap metal would rise.
Type of scrap and quality
Also, one type of scrap metal is not the same as another, for example, when we talk about sale of aluminium or copper sales, we know that one is worth significantly more than the other.
It will also depend on the state of the metal (whether it is oxidised or not, wet, etc.).
Currency fluctuation
If scrap metal is traded internationally, currency fluctuations can be a determining factor in the final price, affecting import and export costs. Therefore, the value of the currency can affect the price of scrap metal.
Valuation of scrap
The price will also depend on the scrap waste recovery. Scrap metal that has been separated, cleaned or packaged is not the same as scrap metal that has not undergone any method of metal separation, is dirty and comes in bulk. This will increase or decrease the price, as value has been added to it.
Cost of logistics
The cost of transport also influences the price of scrap metal and can be a significant cost. The distance and logistics involved can impact on that final price.
Find the best price for scrap metal on ScrapAd
ScrapAd is a platform for buying and selling scrap metal where you can find the best price. Negotiate for the metals you are interested in and reach an agreement with the counterparty. We take care of the rest.
Register your company for free and start trading.