Factors that Determine the Prices of Scrap Metals
Scrap metal dealers basically buy all unwanted metal that owner does not need. 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. Scrap metal price is also determined by the geographical location of the dealer and the person selling them, metals, as well as the amount of scrap metal available for sale. The prices have been changing in the recent past and are now considered higher, compared to the previous years. The dealers normally buy scrap metals on a per tonne ratio; however, there are other rare types of metal that are usually purchased on a per kilogram basis.Some metals are sold on a per tonne basis while others which are considered rare are sold on a per kilogram basis, depending with the king of metal. 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. Dealers break down scrap metals into various categories and further subdivide them again into other small subcategories to set the price as per the metal category. Metals are also classified according to the sizes, and the primary make as a way of helping in pricing. Do not sell blindly without knowing the type of metal you are selling as the dealers can take advantage and buy at a lower price. Visit different scrap metal yards to enquire their prices on the amount of metal you wish to sell.
In areas with several scrap metal dealers, the prices of scrap metals tend to be high as there is competition, unlike areas with few dealers whereby the seller will be left with no choice but to sell at the price the dealer is willing to buy, leaving the seller at his mercy. There are few dealers in rural areas especially in areas with no refining companies, therefore prices in this areas will be low as there are few dealers.
The quantity in terms of tonnage or kilograms will also dictate how much the buyer is willing to offer. It is advisable you pile the scrap metals instead of selling in small quantities so as you get high prices as the seller.
In other areas, metal prices is high during the cold season, probably because of the fact that they became heavy as a result of absorbing moisture, thus weigh much as compared to their weight during the hot seasons. Guided by this, you can collect your scrap metal and hold them in a secure yard during summer, later sell them during winter season at a higher price. Dealers also have a tendency of buying in large during summer and reselling to the refineries during winter season to attract high values.
The status of the economy of any given country will also determine the price of the scrap metals. 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.