Whether you are someone who sells scrap metal, or a business owner that purchases processed scrap metal, it’s important to understand scrap metal prices. In the United States, for example, there are certain criteria that affect the prices of scrap metal. Let’s make a closer examination of what factors influence scrap metal prices.
Supply and Demand
This economic theory drives not only the price of scrap metal, but most economic concerns were price is a factor. The price will be lower the greater the supply of a product. The price will be higher, particularly when supply is limited, the greater the demand. Therefore, scrap metal prices will be lower if it is in high supply and in low demand.
Price of Virgin/New Metals
The price of virgin metals is another element that can affect scrap metal prices. This applies to newly mined metals that have not been processed, recycled, or used. Supply and demand, production costs, and energy costs can drive the price of virgin metal up. When those prices are expensive (high), as an alternative to virgin products, scrap metal becomes more valuable. Alternately, scrap metal becomes less essential when virgin metal prices drop because industries can, instead, afford virgin metals.
Production and Energy Costs
The cost of production and the cost of energy will largely affect scrap metal prices. Here’s what’s included in energy costs: oil, gas, and other electricity sources. In order to make up the difference, the price being offered for scrap metal may be lower when the cost of processing is particularly high. That said however, scrap recycling and scrap metal can be a more valuable endeavor if the costs associated with the mining of new metal are sufficiently inflated.
Other things that may affect the price of recycled metal can be the following: new commodity market price, the time of year, location, the quality of the scrap, the quantity of the scrap, and international trade.
Scrapping Metals for Money
So, what are the best things to scrap if you’re looking for some extra spending money? Here are the top moneymakers were scrap metals are concerned (subject to constant change):
- Insulated copper wire
- Stainless steel
- Ferrous metals such as light iron
Go through your attic, route through the garage, brave that scary basement. It’s time to turn your garbage into gold – so to speak. If you’re part of a nonprofit organization, consider doing an aluminum can drive, or a collection of other trash/scrapped metals, electrical scrap, computer scrap, etc.
If, to make a little extra cash, you’re considering becoming a scrap collector, here’s your startup kit:
- Basic knowledge of metals and their various types.
- Cardboard box, barrel, or truck in which to keep your metal scrap.
- A magnet, even if it’s just a pocket-sized one, is a must-have for all scrappers. A metal is most likely ferrous if it is drawn to your magnet (or vice versa).
H&C Metals offers competitive scrap metal prices for aluminum cans and other non-ferrous metals, computer scrap, ferrous metals, and some electrical scrap. In fact, for over 40 years, we have been offering not only competitive pricing but stellar service in Newark, New Jersey and the tri-state area. If you have a question about what materials we accept for recycling, or what are current prices are, contact us today.
Interested in information about non-ferrous materials? Watch our video here.
If you have questions about possible recyclable materials, our competitive prices, H&Cs’ Trucking and Hauling capabilities, or specific inquiries about metal recyclables, contact one of our knowledgeable customer service representatives today.