Many industrial businesses and people that collect scrap metal rely on scrap metal pricing to help them bring in some extra cash for their scraps.
However, it can be frustrating at times when a person goes to sell scrap metal only to find that the price has fluctuated in a direction that doesn’t meet their expectations. Fortunately, knowing why scrap metal prices fluctuate can be the key to keeping an eye on the best times to sell mass amounts of scrap metal to recyclers.
Supply and Demand
The scrap industry also fluctuates based on the supply and demand of metals. Higher demand for metals and the output of projects that require metals would naturally increase the price of scrap metal.
Keep in mind that as supply continues to grow and that demand begins to decrease, there will be a surplus of metals and the prices will begin to reduce.
Fluctuation of Virgin Metal Prices
The current price of virgin metal mined from a direct source is closely linked to how scrap metal is priced. In essence, when the price of virgin metals increases, industries that require those metals will seek materials elsewhere, like from the scrap metal industry.
However, as we’ve seen, as the demand for scrap metal increases, so will the price of these recycled materials. Therefore, it’s clear to see that when virgin metals shift in value, so will the value of scrap metals sold to a recycling facility.
The United States is known for importing large amounts of virgin metals from other countries. However, moving metals across international borders comes with its share of fuel and shipping costs that heavily influence the value of scrap metals.
As import costs increase or decrease, the local demand for scrap metals will also fluctuate as industries either flock towards or move away from purchasing domestically recycled scrap metals. When this happens, the price of scrap metal naturally increases or decreases with the current consumer demand.
Local market price fluctuations can also impact scrap metal prices. From transporting metals to a recycling facility to the actual process of breaking down the materials, materials like gasoline, electricity, and coal literally keep the recycling process moving.
If the cost for local fuel increases so does the price of metal; with the inverse situation also being true. So, if you notice your local gas prices fluctuating, you can be certain that the price your metals sell for will be higher or lower than your last visit to a recycling facility.
Earn the Best Prices for Scrap Metal at Action Metals Recyclers
If you have a large amount of ferrous or non-ferrous scrap metal on your property, Action Metals Recyclers is eager to help you turn your trash into treasure.
We offer the best prices for scrap metal in Dallas and have on-site equipment to guarantee your scraps are properly separated, weighed, and priced.
Contact us today to learn more about our services or schedule an appointment for pickup or drop-off at our Dallas recycling facility.
We’re ready to help you make the world a cleaner, more efficient place.