If you are considering selling scrap metal for money or you just got started, you may wonder how the prices in this industry work. While many factors go into determining the value of scrap, to get the most from your scrap metal, work with a reputable recycler who will pay you what your metal is worth.
Read on to find out the most important factors that determine how much you can pocket from scrap metal.
1. The International Market
At the global level, metal prices are an important benchmark for forecasting and monitoring economic conditions. Changes in the global economy affect the stock market, which in turn, affect metal prices significantly.
A high global demand for valuable metals, such as copper, inadvertently increases the price of these metals.
For example, the price of copper continues to be impressively high due to the technology and industrialization growth in many economies such as US, Europe and China.
If you are looking to make serious money with scrap metal, keep track of international market trends. This can help you identify the most suitable scrap metal markets to leverage.
2. The Domestic Market
In addition to international market trends, domestic happenings can influence metal prices considerably.
Local industries such as construction and appliance manufacturing play an important role in the domestic demand and supply dynamics of metals. This, in turn, affects the price of scrap metal.
A boom in any of the major industries, especially in construction, creates a high demand for metal, and this can make scrap metal increasingly valuable.
Other factors such as the time of the year and weather conditions, which can affect things like mileage costs, also have implications for the local price of scrap metal. All things being equal, expect a higher demand for scrap metal in the warmer months due to an increase in activity in the construction industry.
Domestic tariffs on metal imports can also impact metal prices. When imported metal becomes too costly for local manufacturers, more and more of these manufacturers turn to local metal producers. An increase in the demand for homegrown metals can push scrap metal prices upward.
3. The Quantity
It goes without saying that the larger the amount of scrap metal you bring to the yard, the bigger your check will likely be.
A best practice is to let your scrap metal accumulate to a reasonable amount before taking it to the yard. This practice will reduce mileage costs, which can pay off in terms of more money in your pocket
If you are a commercial producer of scrap metal, put in place a system to track your inventory to avoid loss or theft. This ensures that the anticipated amount of scrap metal reaches the recycler.
Before loading and transporting, be sure to weigh the scrap metal. On a bill of lading, record the gross and net weight, the type, quantity and grade of metal, and the identification number of the containers carrying your scrap metal.
A reputable recycler will weigh your scrap metal accurately and provide a ticket showing the gross and net weight of the load. That way, you can verify that your check amount is commensurate with the weight of your scrap metal.
While selling scrap can be a great source of income, it pays off when you understand the industry’s dynamics. Be sure to shop around for a trustworthy recycler who can offer you the best price for your scrap metal.
At Sikora Metals, we know the ins and outs of the scrap metal market. Whether you are a small-time scrapper or an industrial entity with large amounts of scrap metal, we have the resources and expertise to take it off your hands. Get in touch with us today.