How Drastically Do Scrap Metal Prices Fluctuate?
For recycling centers, scrap metal sellers, and all other parties involved in the scrap metal industry, price instability in the market can be a concern. Recycling plants all across the world recycle more than a million tons of scrap annually. Weekly, or even daily, swings in scrap prices are common, so your metal may be worth more or less one day than it is the next. The good news is that the price of scrap typically fluctuates by a few cents per pound or dollars per ton, so if you’re someone that is selling relatively small quantities of scrap metal, your payment won’t be affected very much on a day to day basis. In this article, we’ll talk more about the factors that can affect the fluctuation of scrap metal prices! If you’re a resident or business owner in Southeastern Massachusetts that is looking to sell scrap metal, Allied Recycling Center in Walpole, MA, always strives to offer the best possible prices for your scrap metal! Contact us today to learn more!
Location
The prices that you’re offered at a particular scrap metal recycling facility can depend on the location of that recycling center. When scrap metal is recycled, it must be shipped to the location where it will be made into new products. If the recycling facility is far away from the metals destination, transportation costs can result in lower offer prices. Transportation can be expensive for both the sellers and buyers, so the cost will be taken into account when the recycling facility is coming up with the prices they’re willing to pay for different types of metal.
Supply & Demand
The price of scrap metal is significantly influenced by supply and demand, like the price of most commodities. Prices increase in proportion to the demand for scrap metal, depending on availability. Scrap metal’s value falls as demand for it declines. An economic downturn, for instance, is likely to result in less construction, which lowers the demand and cost of scrap metal.
Market Requirements
The demands of the current market have an impact on scrap metal business prices as well. Prime purchasers of scrap metal may alter how they classify or purchase items. As a result, there can be a market wobble and the price of a certain type of metal might fluctuate.
Gas & Oil Prices
Oil and gas price changes have an impact on the value of scrap metal. Most scrap yards rely on fossil fuels to power the machinery required to melt the metals down. Large trucks, which use gasoline or diesel, are also used to transport the metals to their final destinations. Because of these overhead expenses, scrap metal prices will be lower anytime gas and oil prices rise.
Sell Scrap Metal To Allied Recycling Center in Walpole, MA!
If you have any questions about current scrap metal prices or would like to start selling scrap metal in the Southeastern Massachusetts region, please contact us today! Located in Walpole, MA, Allied Recycling Center offers scrap metal purchasing, junk car pickups, dumpster rentals, and various other services to residents and businesses in the region! Give us a call at (508) 668-8699 or fill out the contact form on our website, and we’ll get back to you as soon as possible!