What Determines Scrap Metal Value?
The value of any commodity is liable to fluctuations and this is no different to scrap metal value, which is not to be confused with metal price. There is a range of factors that conspire to influence the price of scrap metal, one of which being metal price itself, but it can be a confusing minefield to navigate, understand, and keep up with.
Here at Craddock Metal Recycling Limited, we are a well-established scrap metal recycling yard in Redditch with over 70 years of experience. We use this experience to give you a basic guide to how scrap metal value is determined with our latest blog below.
Naturally, the market value of metal at the end of the cycle (or ‘market price’) is a factor that influences the value of scrap metal. This is different because it’s the price of metal that is ready to be turned into new products.
Demand and Quantity
The demand for scrap metal, and metal itself, as well as the quantity of each individual scrap yard, will play a part in the value of scrap metal. For example, if demand is high, price is likely to be higher than when demand is low. This is similar if an individual scrap yard has a large quantity of a specific metal because, if they are dealing in larger quantities, they will pay more for that kind of metal to increase their quantities.
Industry plays a large part in the value of scrap metal because those are the people that purchase the metal from the scrap yard. This is affected by a range of factors, such as the time of year and the location of the scrap yard.
At different times of year, there is more demand – for example, the demand from the construction industry is higher when the weather is better because more work can be carried out, which makes scrap metal more valuable. What’s more, the location of a scrap yard might play a part because of the costs they have to cover for logistical reasons.
Prices fluctuate with scrap metal similarly to other commodities, with there being trends and patterns to follow but various factors that can have an impact. This is why it’s almost impossible for the layman to keep up by scrap yards pay close attention to their influencing factors.
It can be difficult to predict but often worthwhile trying to, especially if you’re looking to scrap a large amount of metal.
Craddock Metal Recycling Limited
The best way to learn about scrap metal prices in your area, is to contact your local scrap yard. So, if you’re based in Redditch, Bromsgrove, or the Warwickshire area, contact us today. You can call us on 01527 66866 or fill out our simple contact form and we will be able to help with your enquiry.