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April 17th, 2020

4/17/2020

8 Comments

 
Why Scrap Metal Prices Change

Recycling scrap metal is a great way to make some quick cash. In fact there are a variety of things you can scrap including materials from your home and garage. That is why so many homeowners will scrap their old cars, television sets, faulty kitchen appliances and more. Of course, it is every scrapper's goal to make the most money as possible on their scrap metal. There are a variety of ways to do this, organizing your metal, only making trips when you have acquired a large amount of metal, and cleaning your metal (breaking it down into it's single components) are all ways to increase your take home earnings. But one large influence on the your earnings when it comes to scrap metal, is the current prices. Prices constantly change for scrap metal, which can make it difficult to know when to recycle your metal.

​What Causes Price Changes
There are a variety of reasons that scrap metal prices change. The best way to know what your local yard's prices are is to contact them directly. The reasons scrap metal prices change ranges from global reasons and local reasons. Here are some of the top reasons your scrap yard will likely change their prices.
  • Market Supply/Demand: Like any industry, scrap metal is susceptible to changes in the market. Depending on the demand for recycled metal, prices could rise and fall. For instance, when there is a demand from car manufacturers for more recycled aluminum, the price of aluminum could increase. It can be difficult to predict, but experienced scrap metal recyclers can notice when prices trend.
  • Stockpile Changes: Across the world there are large stock piles of scrap metal. If stockpiles are not being used, this can drastically lower the price for new scrap. For instance, after the 2008 recession, many countries and provinces saw lower scrap metal prices because stockpiles were not being used.
  • Transportation Costs: The scrap metal industry relies on the oil and gas industry. Recycled metal often has to be hauled long distances. Yards will factor in the cost of moving their scrap metal, so when gas prices increase, metal prices can decrease. 
  • Local Competition: Local competition is a large factor in scrap metal prices. Generally, more yards means more competition. If a yard exists and there are no other nearby yards, they are not compelled to keep prices competitive. When you recycle metal, you want to find a nearby yard, but you may not want to go to the nearest yard if that means uncompetitive pricing. You have to factor the cost of transporting your metal compared to changes in prices. 

What To Do With Scrap Metal Price Changes
Because metal prices change frequently, it is important to choose an appropriate time to recycle your metal. Unfortunately, it can often be unpredictable when prices will rise and fall. In many cases, certain metals may increase in value while others remain stagnant or devalue. It may not be beneficial to only recycle some of your metal, as opposed to all of it, depending on your distance to the scrap yard. The best advice is to weight these factors together when deciding where and when to recycle scrap metal. If you need quick cash, you may decide to scrap regardless of market fluctuations. 

8 Comments
Rebecca Gardner link
2/5/2021 12:54:33 pm

Thanks for explaining how local competition from nearby yards can affect the price of scrap metal. My brother mentioned he's interested in selling his old two-door car to an auto salvage yard next week. I'll share this info so he can negotiate a fair price for the scrap metal in his car!

Reply
Tez link
5/19/2021 06:04:07 pm

I like your car tips. I need to scrap my car. It won't drive anymore.

Reply
Tex Hooper link
10/13/2021 05:06:14 pm

I appreciate your tip about contacting the scrap yard directly. I need to get rid of a car that has been sitting in my driveway for 2 months now. I'll have to consider getting it towed to the yard.

Reply
Mia Evans link
3/7/2022 08:18:58 pm

Thanks for helping me understand that the rise and fall of the prices of recycled metal can be caused by the needs of companies for used metals which means that the demand is high. I guess I should ask around first from scrap cars for cash companies to know if it is the right time to sell my first vehicle. It has been sitting in the garage for three years now, and I thought of getting extra cash from it instead of just disposing of it.

Reply
John Carston link
4/11/2022 11:36:52 pm

My favorite part of this article is when you said that one of the great ways to make some cash is recycling scrap metal. Yesterday, my uncle told me that he planned to dispose of his scrap metals but not in the waste, and he asked if I had any idea what would be the best option to do. Thanks to this informative article, I'll be sure to tell him that he can consult a well-known scrap yard as they can help with the proper scrap management.

Reply
Victoria Addington link
4/20/2022 01:57:59 am

Thank you for letting me know that an experienced scrap metal recycler can detect when prices changes due to supply and demand. My brother wants to get cash in exchange for his scrap car. I think he should look for a scrap metal company that's willing to buy his car.

Reply
Millie Hue link
5/15/2022 08:52:02 am

It's interesting to know that the demand from car manufacturers could increase when they need more aluminum. I guess we might get enough money to pay some bills from scrap cars for cash services if we sell the first vehicle of my husband to them. It will definitely be a good option for us as well to dispose of that vehicle while gaining money, especially when the demand is high.

Reply
BN Car Scrap link
6/15/2022 06:45:14 am

Hi!
I have read this blog. This is a very impressive and attractive blog for scrapping my car for money. You can understand things before scrapping. You can scrap my car in the UK for money.

Reply



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