At Scrap Metal Services, LLC, we buy and sell scrap metal. We always pay fair market value for the metal that we buy, and always keep our prices competitive when selling. This begs the question, though: How are scrap metal prices determined?
There are numerous factors that impact the price of scrap metal, outlined below. If you have questions about scrap metal pricing or how you can buy or sell metal with Scrap Metal Services, LLC, please reach out to us directly today.
Factors that Impact Scrap Metal Prices
Scrap metal prices are impacted by more than just a single factor; instead, there are a handful of details that can raise or lower metal prices. These include:
- International trading and global politics. International relationships and politics can influence metal prices, in large part because such relationships may influence who’s selling to whom and how sellers are setting their prices. For example, tensions between China—which is a large player in the global metal markets—could impact prices.
- Season. The seasons and the time of year can impact the markets, as consumer behaviors may shift depending on the weather, holidays, etc., raising or lowering demand.
- Location. When metal has to travel long distances before being sold, transportation and handling fees can increase the price. On the contrary, when metal is sold near the ports or at the location of manufacture, it tends to be less expensive.
- Quantity and quality. When the quantity of available metal is low, the price tends to go up; similarly, the amount of scrap that a scrap yard intakes can influence prices. Additionally, the quality of metal also impacts prices, with higher-quality metals typically being priced higher.
- Industry demand. When there is a large demand for certain metal types, prices of that metal tend to go up, especially if supply is low. This is the basic economic theory of supply and demand.
- Market prices. Finally, within a scrap yard or metal distribution center, global market prices for metal can impact for how much a smaller supplier is selling metal.
Call Scrap Metal Services, LLC Today
At Scrap Metal Services, LLC, we always keep our prices fair and reasonable and always pay top dollar for the scrap that we buy. If you have metal that you want to sell, or if you need to buy finished metal products, we can help. Learn more about our scrap metal recycling services, our brokerage and trading services, and our scrap yard by calling us directly or sending us a message at your convenience. We look forward to working with you!