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Why Do Scrap Metal Prices Change?

Learn why scrap metal prices fluctuate and get more from your investments. We are often told that the value of an item is determined by demand. The greater the demand, the higher the price; the lower the demand, the lower the price. Though largely true, this is a simplified explanation. There are many factors that affect scrap metal prices — on a local, domestic and international level. 

why do scrap metal prices change

Local factors

  • Location

Scrap metal dealers that are near large cities or transport hubs will have lower transport costs than inland competitors. They may inflate their prices to offset their overheads.

  • Transportation

Fuel prices are constantly fluctuating and this can affect the cost of transportation day to day. Scrap metal prices may be inflated in line with a rise in fuel prices to offset these costs.

  • Competitors

The emergence of a new scrap metal dealership can impact the prices of scrap metal at all the existing dealerships nearby. New competition means that existing dealerships may need to vie for customers by increasing prices or marketing/advertising costs.

Domestic factors

  • Industry demand

The state of different industries can impact scrap metal prices. If the demand for cars begins to stagnate, then so too will the demand for the metal required to manufacture cars. Equally, if business is booming and manufacturers are seeing a huge demand for their products, scrap metal becomes more valuable and the price increases.

There are a huge number of industries that use scrap metal — electronic, automotive, technological, construction — and even slight changes within that industry can have a knock-on effect for the scrap metal industry. 

International factors

  • International trade

Many domestic scrap metal dealerships rely on international exports. Countries such as China and India are significant importers of scrap metal. If any of these countries begin reducing their rate of imports, perhaps due to stockpiling too much metal, the value of scrap metal will drop.

Hill Metal Recycling provide an expert metal recycling service for both ferrous and non-ferrous metals to customers throughout Harlow, Hertfordshire and the surrounding areas. We strive to offer our customers the best prices and the most convenient payments. We will send payments directly into your bank account and notify you by text when they’ve been successful. For more information about our services, get in touch today and begin making money from your old metal.

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