YOU MAY HAVE HEARD THAT THE PRICE OF SCRAP METAL HAS RISEN DRAMATICALLY THIS YEAR. EVER WONDERED WHY?
WHY ARE SCRAP METAL PRICES SO HIGH?
Well as we all know the Coronavirus pandemic forced ports to close, slowing down international exports. Producers of nonessential goods like scrap metal immediately felt the hit. The pandemic also halted the production of materials and processes necessary to generate scrap material, such as semiconductors and automotive supply chains
The outlook for 2021 has improved significantly as scrap market conditions, driven in part by constrained supply chains and rising prices, have seen a dramatic turnaround.
HOW ARE SCRAP METAL PRICES DETERMINED?
Understanding the processes involved when it comes to marketing your scrap metal is very crucial. The first important factor to put into consideration is transportation. Although if the scrap metal is a small volume around the house then you may not have problem with transportation; but if you own a firm or business that is into frequent production of scrap mental in large quantity, then the options for transporting the scraps need to be considered.
There are two best options which are: you can have the scrap yard collect it and as well sell the scrap on your behalf or you may contract a scrap haulage company. The most cost-effective and simplest is to deal directly with the scrap yard instead of reaching out to third-party haulage company to collect it for you. This is where we come in!
This is a factor that guarantees making money with selling scrap – selecting the right metals to search for. Obviously precious metals like silver and gold command the highest prices but Copper and brass are common metals that are also selling at high prices.
Another factor that needs to be considered is where to sell the scrap metal. Scrap yards have similar price tags and they accept most metals. The best option for a lot of people will be to visit the closest scrap yard or larger recycling facility.
UK SCRAP METAL PRICES BY CITY
Did you know that Scrap Metal prices in the UK change between cities as they are dependent on local demand and supply. It’s expensive to transport large scale quantities of metal, and so your local market is usually your best bet to get the best valuation for your metal.
WHO’S BUYING YOUR SCRAP METAL?
Mainly dealers, who are required to be licensed and registered in order to trade scrap metal. Search the register of scrap metal dealers to be certain you are trading with a legal entity – or ask for their licence number, as dealers tend to be mobile and their addresses can be unreliable.
Dealers in your local area will determine the price of scrap metal you will receive, and in the UK this price will be calculated as a £ per kg in most cases, except where catalytic converters are involved or in some other unique scrap metal cases.
They will determine their daily prices on a multitude of factors: a. Local Demand and Supply b. Market Trading Prices for the Metals c. If they have treatment facilities for the metal d. Specialisation e. Their own judgement
LET’S BREAK DOWN THESE FACTORS AFFECTING SCRAP METAL PRICES HERE:
A. LOCAL DEMAND AND SUPPLY
Market forces will affect the prices of scrap metals on a local basis (by UK city or nationally). This might be impacted by seasonality, export/import tariffs. For example, there is likely to be a higher demand for local scrap metal due to increased import costs caused by Brexit. However, Sterling has weakened against the Dollar and the Euro, which has negatively impacted export prices
B. MARKET TRADING PRICES FOR METALS
Commodities trading includes the trading of metals which are closely tied to commons crap metal sources. The LME is the international hub for industrial metal trading and you can check the daily metal price updates. This is a great way to understand the specific changes in scrap metal prices in the UK and globally
C. TREATMENT FACILITIES FOR THE SCRAP METALS
Some cities have a higher proportion of dealers with treatment facilities in-house. This means reduced travel of scrap metal, which drives down costs and increases prices.
Treatment facilities include sorting, crushing, cutting, shearing and baling
Different scrap metal dealers focus on different scrap metal materials. One dealer might concentrate on aluminium as they have buyers in Europe with a specific need, whilst another might only purchase aluminium cans. The more your scrap metal matches their specialisation, the higher the price you will get for your scrap metal in the UK!
E. THEIR OWN JUDGEMENT
Every scrap metal dealer applies their own judgement as to where they believe scrap metal prices in the UK, and globally, will head.
Whatever you’ve got hanging around and regardless how much, we’re the people to call. Our prices are extremely competitive and our service second to none.