Factors that Affect Scrap Metal Prices

Price word cloud for scrap metal pricing trends when wanting to sell scrap metal.

Whether you’re a business owner that purchases scrap metal post-processing, or an individual or a business owner that sells your scrap metal for processing, understanding how scrap metal prices are set is important. Consider these primary factors that affect scrap metal prices in the United States, and feel free to reach out to one of our scrap yards or scrap mills for more questions about the current prices that we are offering to buy scrap metal–

Energy and Production Costs

Clearly, the costs of energy (and production) can have a large effect on the price of scrap metal. Energy costs include the costs of gas, oil, and other sources of electricity. When costs of processing are especially high, the price that is offered for scrap metal may drop in order to make up for the difference. That being said, if the costs associated with new metal mining are particularly high, this can make scrap metal and scrap recycling a more valuable endeavor.

Supply and Demand

One of the most basic economic theories that drives the price of scrap metal is that of supply and demand. This theory holds that the greater the supply of a product, the lower the price; the greater the demand, especially when supply is limited, the higher the price. When scrap metal is in low demand and high supply, scrap metal prices will be lower.

Price of New, Virgin Metals

Another element that can affect the price of scrap metal is the price of virgin metals – those that are newly mined and have not ever been used, recycled, or processed. When virgin metals are more expensive (which can be driven by energy and production costs and supply and demand), scrap metal becomes more valuable as an alternative to virgin products. On the other hand, when virgin metal prices drop, scrap metal becomes less essential, as industries can afford virgin metals instead.

Contact Scrap Metal Services, LLC for Fair Scrap Metal Pricing

At Scrap Metal Services, LLC, we always pay top dollar and fair market value for our customers’ scrap metal and are transparent in how our prices for scrap are determined. To learn more about our scrap pricing, what we buy and what we do not buy, and our locations throughout the United States, please reach out to us today.

We are a leader in the scrap recycling industry with a reputation of excellence, sustainable practices, and worker safety. Please call us today at 708-730-1400 or send us a message directly.

Industry Insights for the Scrap Metal Industry

market revenue concept when looking for steel recycling industry trends

The scrap metal and scrap metal recycling industries are a very important part of U.S. revenue and economic wellbeing, generating billions of dollars every year and providing numerous jobs. Of course, like all industries, year-over-year changes and fluctuations in the market are common. Here are some industry insights for the scrap metal industry for 2018 that are important to know if you work in the scrap metal industry, or are a scrap metal buyer or seller–

Who Are We Talking About When We Say “Scrap Metal Industry?”

When we use the term “scrap metal industry,” we are talking about numerous different players. These key players include:

  • Steel and iron recyclers;
  • Aluminum scrap recyclers;
  • Lead scrap recyclers;
  • Copper scrap recyclers; and
  • Other nonferrous scrap recyclers.

In addition to recyclers, all those involved in the collection and processing of ferrous and nonferrous materials are counted, too.

Revenue Is Slightly Down

According to IBISWorld, over the past five years, the scrap metal industry has declined ever so slightly – 2.3 percent to be exact. As such, U.S.-based scrap metal revenue generated approximately $39 billion in 2018. In addition to the slight revenue decrease compared to previous years, the number of scrap metal businesses has also decreased by .9 percent, and the number of scrap metal employees has decreased by .6 percent.

What’s Expected for the Industry?

It can be difficult to make accurate predictions about the industry – a change can be preceded by a political move, bad weather, or numerous other unexpected circumstances. That being said, some forecasts for the future include:

  • The price of steel is expected to fall slightly, which could threaten the scrap recycling industry. When prices for steel are lower, there is less demand for scrap recycling.
  • However, the industry could also experience a boom in the future, at least in the United States. This is because China buys a lot of American recycled steel products, and as the GDP of China is expected to increase, so are the country’s building and development needs, increasing the demand for steel.

Contact Scrap Metal Services, LLC Today to Learn More

If you have questions about scrap trends or scrap recycling or want to get fair market value when selling your scrap, call our team at Scrap Metal Services, LLC today. We are a leader in the scrap recycling industry and have years of experience behind us. Reach us at 708-730-1400 today or send us a message to learn more.

What Are Nonferrous Materials and How Are They Processed?

examples of nonferrous metals that can be recycled with an experienced metal recycling company

Most metal recycling operations focus on the recycling and processing of ferrous materials. However, nonferrous materials are important too and are desired by parties in numerous different industries. At Scrap Metal Services, LLC, we manage both ferrous and nonferrous metal processing.

What Does Nonferrous Mean?

Nonferrous materials are those materials that do not contain iron – on the contrary, ferrous materials are materials that do contain iron. There is a long list of valuable nonferrous materials, including:

  • Aluminum;
  • Nickel;
  • Zinc;
  • Tin;
  • Copper;
  • Lead;
  • Brass; and
  • Titanium.

What’s more, the metals that we think of as “precious metals,” like gold and silver, are also nonferrous. There are also numerous rare metals, like cobalt, that are nonferrous in nature.

What Do We Use Nonferrous Materials for?

Nonferrous materials are used in the iron and steel industries, and for the manufacture of consumer goods and more. They are desirable because they are flexible and lightweight, and may contain other properties, such as resistance to corrosion. Because these materials do not contain iron, they are not magnetic. This can be desirable for certain manufacturing jobs and other projects.

How Are Nonferrous Materials Processed and Recycled?

The recycling of nonferrous materials is critical; recycling is an economically viable option for most materials (i.e. aluminum) and is also environmentally sound. The process of recycling nonferrous materials starts with sorting – different materials types must be properly sorted in order to be processed correctly. It is critical that any non-recyclable materials, like plastic, are removed. The second step of the process is baling, where the nonferrous materials are compacted into large blocks. This makes their transportation easier.

After sorting and baling, shearing, or cutting, of the nonferrous materials is the next step. This is done using high-grade machinery. From there, ferrous and nonferrous materials are further sorted and separated, typically using magnetic forces. Finally, nonferrous materials will be melted and shaped.

We’re a Trusted Metal Recycler Near You

At Scrap Metal Services, Inc., we have been in the metal recycling industry for more than a decade, and are a worldwide leader in scrap processing. We specialize in metal recovery and the processing of both ferrous and nonferrous materials and are ready to help your company meet its recycling goals today.

To learn more about the process of recycling nonferrous materials, please call us today at 708-730-1400 or send us a message using the intake form on our website.

How Will Tariffs Affect Metal Prices?

tariff graphic concept for how changes in tariff will affect price of metal, contact a reputable scrap metal recycler

How Will Tariffs Affect Metal Prices?

Tariffs, including what they are and how they work, can be complicated to understand. What’s more, if you are employed or run a business in an industry that relies heavily on metal, you may be wondering how tariffs will affect metal prices. Here’s a brief overview of what you need to know-

What Are Tariffs?

Tariffs refer to a type of tax that is paid on an import or export to the United States. The tariffs imposed under President Trump specifically impose a tax on imports to the United States, which is assessed at the border (of course, in response, other countries enacted a tariff on imports to their own countries from the United States).
The basic idea behind a tariff is this: because it increases the cost of the good to be imported, the cost should act as a deterrent, urging Americans to purchase locally-manufactured items instead of imported ones. While this is a nice idea, in theory, the problem is that the vast majority of goods in the United States are made overseas, or at the very least, contain parts that are manufactured overseas.

What Do Tariffs Mean for Metal Prices?

The tariffs that were enacted by the Trump administration a few months ago have meant that metal prices have increased. To be sure, in January, the cost of Ingot Premium aluminum was 10 cents a pound, and by mid-March (after Trump had announced the 10 percent tariff on aluminum), the price had jumped to 20 cents a pound. Steel underwent a similar price hike – in January, the cost of hot-rolled coil was $661 per short ton, and in March, the price had increased to $836.

When Will Tariffs End?

If you’re in an industry that relies on the import of metals, you may be curious about when the tariffs will end. The answer is unclear, but as of September 2018, Trump has said that he’s considered more tariffs, not fewer. As a leader who strongly believes that imports hurt America, he’s been vehement in his conviction that tariffs will make America a stronger country and global leader.

Recycling Scrap Metal Can Help

While no one can avoid tariffs, and your business may be forced to import and pay high taxes on your imports as such, recycling scrap metal can help. The recycling of ferrous and non-ferrous materials like steel and aluminum reduces the need for additional imports from other countries, is good for the environment, and can be economically beneficial for companies.

We Can Help

To learn more about how we can manage your scrap metal processing and recycling needs, please call us today at 708-730-1400 or send our team a message today. We are a leader in the scrap recycling industry.

Environmental and Economical Benefits of Scrap Metal Recycling

sustainability concept for metal recycling work with our scrap metal company in Illinois

Environmental and Economical Benefits of Scrap Metal Recycling

Recycling scrap metal rather than taking it to the landfill is the just smart thing to do, period. In fact, not only can recycling be great for the earth–after all, recycling limits the amount of natural resources that have to be extracted and utilized–but it also has numerous economic benefits, too. Consider some of these environmental and economic benefits of scrap metal recycling–

Recycling Saves Natural Resources

One of the most pressing reasons why our team at Scrap Metal Services, LLC is passionate about recycling is that recycling saves natural resources. There is only a limited amount of metal ore found on the planet, and once we’ve extracted it, it’s gone. What’s more, extraction practices are harmful, energy-intensive, costly, and destroy habitat and pollute the air and water. Soil, plants, animals, water, and air are all tainted when we mine for metal ore – recycling is a better option.

Recycling Keeps Harmful Toxins Out of Landfills

Many metal-containing items that are recycled contain dangerous toxins, such as lead and mercury. When these materials are processed in the property facility type, these toxins can be separated and properly disposed of. Unfortunately, these materials–and the toxins they contain–often make their way into landfills, where the toxins then contaminate our soil and water. This can have a major disruptive effect on wildlife and the earth, as well as human health.

Recycling Generates Export Sales

Recycling scrap metal is good for the economy and generates billions of dollars in export sales every year. This means that through recycling of metal, America remains more competitive on the global scale.

Recycling Employs People

The recycling industry, including the scrap metal recycling industry, is one of the top employers in the country, providing jobs for tens of thousands of workers on an annual basis. In fact, according to Ecocycle.org, recycling and reuse creates at least nine times more jobs than does sending materials to landfills and incinerators, and up to as many as 30 times more jobs!

Do the Smart Thing for the Earth, the Country, and Your Business

By recycling your scrap metal, you can be an active participant in helping the environment, supporting American jobs, and even improving your own business’ economic situation – at Scrap Metal Services, Inc., we pay top dollar for your scrap!

To learn more about how we can help and why you should work with our scrap recycling team, please call us at 708-730-1400 today, or send us a message directly.

SMS AWARDED MILL SERVICES SLAG MANAGEMENT CONTRACT AT JSW MINGO JUNCTION

Scrap metal rendering

SMS AWARDED MILL SERVICES SLAG MANAGEMENT CONTRACT AT JSW MINGO JUNCTION

CHICAGO, IL  – October 30, 2018

Scrap Metal Services, LLC (SMS), headquartered in Burnham, Illinois, and its mill services division, SMS Mill Services, LLC, announced that it has successfully entered into a multiyear contract at JSW Steel USA’s newest facility in Mingo Junction, Ohio. The long-term contract will include slag removal and processing, metal recovery, drop balling, and other miscellaneous services.

“We are excited to grow our Mill Services platform and relationship with JSW USA. The contract between the two companies solidifies the values of both companies and their commitments to health, safety, and environmental sustainability,” said Jeffry Gertler, CEO of SMS.

“We are pleased to expand our relationship with SMS as JSW USA furthers its vision in Ohio, along with its facilities in Texas, to become the most technologically advanced melt and manufacture entity in North America. The gamut of our vision has grown in a short period of time to improve and install three electric arc furnaces and create 1,000 new jobs in the US,” said John Hritz, President and CEO of JSW USA.

JSW USA, based in Baytown, Texas, is a wholly-owned subsidiary of JSW Group, a $13 billion group headquartered in India with more than 40,000 employees worldwide. JSW is India’s largest steel producer with a presence in 100 countries. JSW recently purchased the Mingo Junction steel plant and has committed to invest $500 million that is expected to create over 500 jobs in the area.

Scrap Metal Services, LLC (SMS) headquartered in Burnham (Chicago), IL, together with its affiliates, including its mill services division, SMS Mill Services, LLC, operates scrap processing, steel mill services, ship dismantlement and recycling, intermodal/truck/railcar dismantling facilities throughout the United States. SMS provides full-service scrap management, consulting and purchasing services to industrial scrap generators both domestically and internationally. SMS is also a supplier of ferrous and nonferrous scrap commodities to both domestic and international consumers.

What to Look for in a Trusted Scrap Recycling Partner

trusted steel mill scrap metal recycling company in Blue Island

What to Look for in a Trusted Scrap Recycling Partner

Regardless of the industry in which you work, if your business produces scrap, or if you are an individual who is in possession old farm equipment, or other types of scrap metal, scrap recycling is a must. To be sure, scrap recycling not only helps your business to maximize its profits but also clears up space and puts you or your business at the forefront of responsible recycling efforts.

But before you hire just any company to buy and process your scrap, you should know what to look for in a trusted scrap recycling partner. Here are some key characteristics of a trusted scrap metal services company:

Experience

Our team of professionals knows that when it comes to scrap recycling, experience makes a huge difference. This is because scrap management and processing is a large undertaking and one that can take years to effectively refine. At Scrap Metal Services, LLC, we have been providing scrap services for clients for over a decade, and have quickly grown to a worldwide leader in the scrap recycling industry.

Comprehensive Services

We provide myriad services for our industrial partners. These services include management of all logistics, transportation services, container recycling services, railcar dismantling, ship decommissioning, processing of ferrous and nonferrous materials, demolition services, and more. We are your one-stop-shop for all of your scrap metal recycling needs; you’ll never need to work with outside third parties.

Commitment to Worker Safety

Worker safety is at the forefront of our approach to scrap management and processing. We maintain written health and safety policies, always do business within OSHA compliance and federal regulations, and maintain accident reports and a thorough investigation process.

Commitment to the Earth

We know that improper scrap metal recycling and dismantling services can be hazardous for the earth and that our workers and our planet face risks ranging from asbestos exposure, radioactive material exposure, pollution exposure, and more. We believe that recycling is one step in the goal to be more sustainable. We recycle in the most planet-friendly way possible, always adhering to EPA guidelines and best practices.

Putting Clients First

Finally, you want to work with a company that puts you first. We listen to our clients, pay top dollar for scrap, and handle all logistics. Working with us is easy, and you’ll always be met with honesty and transparency.

Start Recycling Scrap Today

The right company will meet all of the above criteria. At Scrap Metal Services, LLC, we are ready to meet with you and learn more about your scrap recycling needs. Call us today at 708-730-1400 or send us a message using the form found on our website.

Why Farmers Should Recycle Scrap Metal

image of vintage tractor that can be recycling with leading scrap metal recycling company in IL

If You’re a Farmer with Scrap on Your Property, Recycling this Metal Is Responsible and Profitable

As the harvest season comes to a close for farmers throughout the United States, there is a satisfaction in reaping what was sown. And as you drive your last loads of produce and agricultural wares to the market for sale, keep in mind that you have another source of profit on your farm: scrap. To be sure, scrap metal from old farm equipment can be profitable, and recycling your scrap metal can yield cash that allows you to reinvest in your farm.

Sources of Scrap on the Farm

Your farm likely has myriad sources of scrap just waiting to be harvested! Some of the top sources of scrap on your farm include:
  • Old farm tools;
  • Tractors;
  • Combines;
  • Plows;
  • Extra repair metal;
  • Old storage sheds (metal containers) in need of replacement; and
  • Old vehicles.
Take a walk around your farm – if you see sources of metal that are no longer in use and are just sitting around collecting rust, call our team. We can help you meet your sustainable agricultural scrap recycling goals.

Top Reasons to Recycle Your Farm’s Scrap Metal

If you’re a farmer, you know the value of hard work, and chances are, you also know the value of a dollar. Which is why recycling any farm scrap you have can be a smart choice. Recycling your farm’s scrap metal can yield:
  • More space for ongoing projects;
  • A safer workplace for farmers;
  • Pride and comfort in the knowledge that you’re doing your part to help the earth through responsible recycling of metals, which cuts down on the need for new metal mining; and
  • More money in your pocket that you can reinvest in your farm – at Scrap Metal Services, LLC, we pay top dollar for your agricultural scrap metal.
In fact, there’s no reason not to recycle your farm’s scrap metal. And don’t make the mistake of thinking it’s just worthless junk! We process metal and extract all valuable materials, and manage ferrous and nonferrous metal processing.

We Handle All of Your Agricultural Scrap Recycling Needs

At Scrap Metal Services, LLC, our team is competently able to handle all of your agricultural scrap recycling needs. We provide comprehensive services, including on-site dismantling and deconstruction. We can also provide containers for loading and shipping, and handle 100 percent of the logistics and transportation needs associated with this operation. To learn more about scrap recycling of farm equipment and why you should work with Scrap Metal Services, LLC, call us today at 708-730-1400 or send us a message telling us more about your recycling needs as a farmer. We look forward to partnering with you!

The Benefits of Recycling Scrap for Your Business

Scrap Metal and if you are looking for help with metal scrap recycling contact a great company in Burnham.

There are a number of businesses in different industries that can benefit from the process of recycling scrap, ranging from agricultural businesses to manufacturing companies and more. Recycling scrap is not only easy when you work with Scrap Metal Services, LLC, but also a great way to clean up your property, make some money, and do the earth some good. Consider these tops benefits of recycling scrap for your business–

The Cash Makes it All Worth It

Perhaps one of the most compelling reasons for businesses to turn to scrap recycling is the fact that recycling your scrap yields business revenue. If you have old equipment on your property that is obsolete, taking up room, and super heavy (because it’s so dense with metal), you can be paid for that piece! At Scrap Metal Services, we take all scrap, ranging from old reapers and winnowing machines and more. We pay cash for scrap!

Your Property Could Use the Pick-Me-Up

Another benefit that you’ll get from recycling your scrap is a cleaner and more organized-looking property. Not only may this be a key part of attracting customers and doing good business, but it can also provide you with more physical space on your property for other business operations. After all, if you keep allowing scrap to pile up without recycling it, at some point you’re going to run out of space.

You’re Doing the Earth a Favor

If your business is trying to go green, recycling your scrap is one step in the right direction. As explained by U.S. Geological Survey, metals are important reusable resources and recycling them provides environmental and economic benefits, including reduced waste and improved energy savings. In a single year, the United States recycled 58.3 million metric tons of selected metals, the majority of which were iron and steel.

If you’re wondering why going green is good for your business, consider that in today’s competitive business market, customers are always looking for companies that stand out from the rest – prioritizing environmental responsibility may help you achieve that. Recycling may also help your business get the green certifications it’s striving for.

Learn More About Scrap Recycling from Scrap Metal Services, LLC

There are a number of benefits associated with recycling scrap but you can’t take advantage of these benefits without partnering with a trusted scrap recycler near you. At Scrap Metal Services, we provide a full range of scrap recycling services including the processing of ferrous and non-ferrous materials, railcar and ship and vessel dismantling, and management of all transportation and logistics.

To learn more about our scrap recycling services for your business, please reach out to us directly. We serve businesses in a variety of industries and serve companies throughout the United States. Reach us by sending us a message using the intake form on our website, or call our Burnham, Illinois location at 708-730-1400.

3 Industries Affected by Steel and Aluminum Tariffs

Long tubes of metal and if you need assistance with removing your metal recycling a national company in Burnham has a great reputation.

Nearly all businesses in the United States, as well as all consumers, rely on metals for a variety of purposes. Indeed, your home refrigerator or oven wouldn’t be what it is without metal.

There are countless industries that rely on the importation of metals in order to do business. Which is why the decision of the U.S. government to implement taxes on imported steel and aluminum could have a large effect on the following industries and the overall American economy–

Manufacturing Industry

Businesses in the manufacturing industry are likely to use the greatest quantities of metals. Manufacturing companies that are dependent upon steel, aluminum, and other metals include manufacturers of appliances, electronics, and airplanes.

Construction Industry

According to the same article cited above, there are a whopping 10.1 million Americans who are currently employed in the construction industry. As steel prices increase, the price of steel beams (which are integral to construction) will go up, making building a more expensive endeavor for construction companies nationwide.

Oil and Utility Industries

If you’re struggling to see the connection between the oil and utility industries and steel and aluminum importation, consider that both of the former industries rely on steel in order to manufacture pipelines. These pipelines are a critical piece of energy infrastructure. Of course, these industries also use steel and aluminum for the manufacture of wires and beams (and numerous other things), too.

How Much Do We Really Rely on Imported Steel?

Without the importation of steel and aluminum, the American economy simply would not function. To be sure, of the 100 million tons of steel used in the U.S., imports make up approximately one-third of that. Nearly two-thirds of aluminum used in the states is a result of imports.

What About Domestic Steel Production?

The pressure is on for domestic steel producers to close the import gap as prices for imported steel and aluminum that increase. Additionally, now more than ever before, the recycling and responsible processing of scrap metal are of vital importance.

For businesses that are affected by metal and scrap metal, having a trusted partner for processing and recycling services can provide peace of mind – Scrap Metal Services, LLC can help.

To learn more about our scrap processing and recycling services, please reach out to us today. You can reach our Burnham, Illinois location at 708-730-1400 or get in touch with us by sending us a message using the contact form found online.