What determines the scrap metal price?
You might not be aware but we also offer a scrap metal service from our base in Paignton. There is always a lot of hype surrounding the prices associated with scrap so we thought we’d try to explain!
While selling scrap metal might seem far removed from the likes of the stock market, they have a lot of similarities. Prices can change almost constantly, which is why companies are always hesitant to display prices on their websites.
How often do they change?
It may come as a surprise to a lot of people, but the change can be hourly. The pricing of metal will often change with peaks in manufacturing and trade. There are also obviously a huge number of metals and they all have different prices.
As with a lot of industries, a lot of the pricing can come down to supply and demand. There are also several other reasons for it to change too. There are also many reasons why one place will charge you differently to another.
The driving factors
Scrap companies have to sell the metal on at some point. When they do they will also have a price they receive. If this changes then the price of the metal will change with it. With a higher sale value, a scrap metal company would be able to spend more on their scrap metal.
This, again, can come down to supply and demand. If there are industries in need of the recycled metal they will pay more for it, and scrap metal companies will pay more for their scrapped metal too. It’s a chain of demand that can constantly alter the scrap metal price.
There are other key factors too. If there is a bulk amount of scrap metal then better deals might be offered. Also, the likes of bad weather can halt construction needs and the location of the scrap yard can also change prices if it’s in a prime location.
As you can imagine, the amount of metal transported around the world is incredible. The likes of India and China account for a huge percentage of scrap metal and if their demands change, the whole industry can change.
Get the best price
Hopefully you now better understand the volatile world of scrap metal pricing. When you call EMS we’ll be able to give you the best price around. While a whole lot of global factors affect the price, we will always make sure it’s the best one you can get.
Call us today for a no-obligation quote.