If you already have some experience with scrap metal recycling, you would know that the prices fluctuate regularly. Checking the market to see which metal is more demanded that week is important to get the best price. For many people, fluctuations can be frustrating. However, they don’t happen randomly. Instead, they depend on many different variables. In this article, we will go over some of the industries and factors that affect the prices in the scrap metal industry.
The popularity of the renewable energy industry is growing at an amazing rate each year. As the demand for renewable energy rises, the need for recycled metals is also growing. Due to increase demand, metal prices are also in increase.
Many countries depend on importing metal for their various sectors. The amount and prices of imported metal directly affect the scrap metal prices in the United States. For example, if importation and metal prices are high, many sectors will go for national sources. This will increase the demand in the scrap metal industry, and the prices will increase. Tariffs in other countries are one of the primary deciding factors that define whether the importation process costs are high.
The Virgin Metal market is one of the most important factors affecting the scrap metal market fluctuations. Nowadays, the cost of manufacturing virgin metals is getting quite high. Therefore, the demand for virgin metals is decreasing while the demand for scrap metals is increasing. This demand automatically affects the prices.
Recycling of metals depends on fuel due to machinery usage. Therefore, when the fuel prices increase, the companies pay less to scrap metal owners since the cost of recycling is already high for them. On the other hand, when the oil prices go down, their operating costs decrease, and they can pay more to the scrap owners.
Since scrap metal is becoming a major part of our daily lives, the need to recycle quickly and effectively is also becoming urgent. Knowing this, many technology firms are trying to develop new technologies that will increase the recycling rate. Most of these technologies focus on sorting and processing scrap. Through these technologies, more recycled metal is produced in a short amount of time, and this reduces scrap metal prices.
Of course, metal suppliers are one of the most defining factors in the prices of the scrap metal industry. Many sectors look up to metal suppliers for the continuity of their industry. If there’s a demand for a specific metal at that time of the year, and the available metal isn’t enough to cover the demand, scrap metal prices will also rise. On the other hand, if the metal suppliers have an excess of a certain metal, the scrap metal prices will drop, and they will pay the owner less.
If you have scrap metal that you want to sell, don’t hesitate to call the professionals of M&M Recycling. We are one of Atlanta's best scrap metal companies and provide service for many residents and business owners. If you want to learn more about the metals we accept and to learn more about our prices, call our friendly representatives today.