When a person starts to get involved in the scrap metal recycling business, most of the time, one of the most confusing issues they find is the price fluctuations of different metals in the market. Since it can be hard to understand why this happens, we decided to talk about some of the factors that cause these fluctuations.
Just like other valuable sources on earth, like oil, gold, and fossil fuels, many metals are also considered valuable. That’s because almost every single industry on earth needs to utilize them one way or another. However, as a rule, its price will increase when a resource has only a small supply and a huge demand for it. As the population of countries increases, many industries require metal more than ever, whether for cars or new buildings. When a metal is harder to find but is demanded a lot by a certain industry, its price will be higher naturally. This supply-demand chain is known the be the biggest influencer in price fluctuations.
A lot of people don’t give a second thought to this. However, seasons affect metal prices a great deal. During spring and summer, people use their cars more often for reasons like vacations, so the demand for cars increases, and naturally, to make cars, automobile companies need scrap metal. Similarly, many industries prefer to work on projects like buildings, roads, or even bridges during warmer months because it’s hard to work in harsh weather conditions. So, there’s a sudden increase in scrap metal for these types of projects as well, and this demand is reflected in the prices in the market.
One thing about scrap metal is that it’s not stationary. Since the whole process of recycling doesn’t take place in the yard, it should be transported to other places, and this transportation step can be quite costly. Depending on the cost of the transportation, the price of the scrap metal will change. For example, the transportation cost will be much less when a city is close to the sea or other heavily populated cities.
One unchanging fact is that popularity of metals doesn’t change. As countries' populations increase, the demand for metal in all areas of our lives also increases. So, using readily available metal is crucial for keeping our environment clean. That’s why if you have any old devices, furniture, cables, or car, it is important to give them to a reliable scrap metal company. Since the process will both help the environment and will help you make some extra cash, choosing the right company is as important as the act itself. That’s why here at M&M Recycling, we delicately take care of the metal and offer great prices to our customers. Call us today to learn more about the prices and metals we accept.