Top Reasons Why Scrap Prices Change
March 20, 2018
There are a number of domestic and international factors that influence scrap metal prices. In fact, a majority of questions we receive about scrap relates to scrap prices, including, “What is the price of scrap copper?” and “When will scrap prices go up?” While we can’t predict the future, we can explain why scrap prices change.
International Factors that Affect Scrap Prices
- Market Demand Changes – Metal prices increase with higher demand. Projects like infrastructure improvements, construction, and product manufacturing can impact demand and prices.
- Level of Exported Metal Decreases. When countries like China and India stop accepting our exported metals, scrap prices may drop. Alternatively when these countries have too little scrap, they are willing to pay more for these metals.
- Metal Classification Changes. Should countries that buy a majority of the world’s scrap change the way they classify material, this change could cause scrap prices to change.
Local Factors that Affect Scrap Prices
- Fuel Prices Change – Since scrap yards have to transport scrap metal to larger yards and ports, things like fuel prices can impact scrap metal prices. For example, a scrap yard may drop prices when it costs more to get a truck on the road. The difference gets made up with the materials they buy.
- The more competitors are within a market, then the more competitive scrap prices become.
We hope you found this information on changing scrap prices helpful. If you would like to learn more about scrap metal prices, please call us today.