What Determines Scrap Metal Prices?
Scrap Metal Prices
Recycling scrap metal prices 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.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.
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.
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.
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level of service in the entire field of scrap metal recycling. For more visit
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