If you’re the owner of a business that produces scrap metal, understanding how the value of that metal is determined–and therefore how much you will be paid for selling and recycling your scrap metal–is a very important consideration. You surely want to get top dollar for your scrap metal, which means working with a trusted scrap metal processor that uses fair factors to determine an offer. Here’s a look into factors that affect the value of scrap metal, and therefore how much your scrap may be worth:
Supply and Demand
Of course, one of the driving factors in the value of scrap metal is the theory of supply and demand; how does the current supply of certain metals meet consumers’ demands? When there is a supply shortage and the demand is greater, prices will increase; on the contrary, if there is an excess in supply and no demand for materials, prices will decrease.
Ferrous vs. Non-Ferrous Materials
Another thing that will affect the value of your scrap metal is whether or not your scrap is ferrous–which means it contains iron–or non-ferrous–which means it does not contain iron. Currently, non-ferrous materials tend to be more highly valued, as they are used in more industry types. Ferrous materials tend to be less sought after, which means that you probably won’t get as much money for this type of scrap metal.
The Location of Your Scrap
Overhead costs that are associated with the transering/transportation of scrap can also affect the value of your scrap metal, as a scrap recycler/purchaser will probably offer you less money if overhead costs are high in order to counter this. However, if you’re located in a location where scrap metal is more difficult to acquire, the demand for your scrap may increase its value.
Global Scrap Value
Remember that it’s not just prices throughout your state or the United States which affect the value of scrap metal, but global markets, demands, and economies.
Why Work with Scrap Metal Services, LLC
When you work with Scrap Metal Services, LLC, we will pay you top dollar for your scrap. We are able to do this by following all scrap value trends and setting a fair price based on real data. Not only do we pay you the maximum value for your scrap, but we also handle all logistics on your behalf in order to minimize costs and stress on your part.
To learn more about our scrap recycling services, please call our headquarters in Burnham today at 708-730-1400, or send us a message using the intake form on our website.