Determining Factors in Pricing Scrap Metals.
Scrap metal dealers have been buying all unwanted metals that people in the household throw away and paying you back. There are several types of metals that are sold as scrap, among them been copper, aluminium, brass, etc. all attracting different prices from different metal dealers. It also depends on the location of the dealer and the seller and the amount of scrap metal available for disposal. Meal prices have been increasing with time, and are now higher as compared with the prices in the recent years. Scrap metal is weighed and sold in two forms, on a per tonne for the normal kind of metals and on a per kilogram for the metals that are considered rare. We look at factors that determine the prices of scrap metal.
The major determining factor of the scrap metal price is the type of metal. The people involved in selling scrap metals normally subdivide scrap metals into various categories and subcategories, depending on the type of metal, to assist them in setting the price for each metal. They further grade them into two or more grades guided by the metal size and the metal alloy. So as to get the best prices from the scrap metal dealer, ensure you are familiar with the type of metal you wish to dispose. Visit different scrap metal yards to enquire their prices on the amount of metal you wish to sell.
Another factor is the location of the scrap metal dealer whereby in areas with several dealers, there will be competition and the prices can be relatively high as compared to areas where there are few dealers. To be able to fetch good value for your scrap metal, always consider selling them to scrap dealers or refining companies located in urban industrial areas as their buying price is high compared to those in rural areas.
The dealers also consider the amount of metal been sold before setting the price, high quantities attracts a better price that low quantities. Even dealers buys in large quantities and accumulate the metals, stores them an later resell to refining companies in bulk to get high profits.
During summer, the prices of scrap metals goes down and rise again during winter in some areas. So as to get maximum value for your metals, collect them and store in a yard safely, later sell them during the winter season at a relatively high price as companies to the amount you would have sold during the winter season. The same logic also applies to the dealers who also buys in large quantities during summer and resell to industries during winter.
The status of the country’s economy will also determine the market for scrap metal. A slow economy will mean less developments in terms of construction of structures that require steel such as bridges as well as other industries such as car industries, thus slowing down the demand for metal.