Below we have listed six key factors that affect the cost of scrap metal. Do not sell scrap metal without first understanding these factors. Receiving scrap metal is a very serious business and you need to be knowledgeable in this area.
Factor 1: Amount of scrap
The amount of scrap sold affects its cost. For example, the cost of a kilogram of aluminum cans will differ from the cost of a truck. The larger the amount of scrap metal, the better at buying or selling scrap. Ideally, if you can collect scrap metal and sell it in bulk.
Factor 2: Scrap Quality
Is your scrap covered with insulation or corrosion? In this case, you will get a much lower price, because the dealer will need to remove or clean the insulation. Remember - clean high-quality scrap is almost always high scrap price .
Factor 3: Industry Demand
Various industries such as construction, industry and technology affect the cost of scrap metal. For example, if the construction industry is slow, the demand for steel and iron will fall. This usually directly affects steel scrap prices and copper scrap prices.
Factor 4: Location
Location plays a huge role in the value of your scrap. Expect scrap prices to be lower or higher depending on your location.
Factor 5: Optimal timing
The season and even the weather greatly affect the cost of scrap. In general, the demand for recycled metals increases in good weather.
Factor 6: International Trade
Countries such as China and India, which have large volumes of scrap imports, can affect scrap prices around the world. Keeping track of scrap prices can be difficult, but it's important to know what affects current prices.