How Are Scrap Metal Prices Determined? 

Collecting Scrap Metal Becuse Prices Are Increasing and Fluctuating

How Are Scrap Metal Prices Determined? 

At Scrap Metal Services, LLC, we buy and sell scrap metal. We always pay fair market value for the metal that we buy, and always keep our prices competitive when selling. This begs the question, though: How are scrap metal prices determined? 

There are numerous factors that impact the price of scrap metal, outlined below. If you have questions about scrap metal pricing or how you can buy or sell metal with Scrap Metal Services, LLC, please reach out to us directly today.

Factors that Impact Scrap Metal Prices

Scrap metal prices are impacted by more than just a single factor; instead, there are a handful of details that can raise or lower metal prices. These include:

  • International trading and global politics. International relationships and politics can influence metal prices, in large part because such relationships may influence who’s selling to whom and how sellers are setting their prices. For example, tensions between China—which is a large player in the global metal markets—could impact prices. 
  • Season. The seasons and the time of year can impact the markets, as consumer behaviors may shift depending on the weather, holidays, etc., raising or lowering demand. 
  • Location. When metal has to travel long distances before being sold, transportation and handling fees can increase the price. On the contrary, when metal is sold near the ports or at the location of manufacture,  it tends to be less expensive. 
  • Quantity and quality. When the quantity of available metal is low, the price tends to go up; similarly, the amount of scrap that a scrap yard intakes can influence prices. Additionally, the quality of metal also impacts prices, with higher-quality metals typically being priced higher. 
  • Industry demand. When there is a large demand for certain metal types, prices of that metal tend to go up, especially if supply is low. This is the basic economic theory of supply and demand. 
  • Market prices. Finally, within a scrap yard or metal distribution center, global market prices for metal can impact for how much a smaller supplier is selling metal.

Call Scrap Metal Services, LLC Today

At Scrap Metal Services, LLC, we always keep our prices fair and reasonable and always pay top dollar for the scrap that we buy. If you have metal that you want to sell, or if you need to buy finished metal products, we can help. Learn more about our scrap metal recycling services, our brokerage and trading services, and our scrap yard by calling us directly or sending us a message at your convenience. We look forward to working with you!

Factors that Affect Scrap Metal Prices

Price word cloud for scrap metal pricing trends when wanting to sell scrap metal.

Whether you’re a business owner that purchases scrap metal post-processing, or an individual or a business owner that sells your scrap metal for processing, understanding how scrap metal prices are set is important. Consider these primary factors that affect scrap metal prices in the United States, and feel free to reach out to one of our scrap yards or scrap mills for more questions about the current prices that we are offering to buy scrap metal–

Energy and Production Costs

Clearly, the costs of energy (and production) can have a large effect on the price of scrap metal. Energy costs include the costs of gas, oil, and other sources of electricity. When costs of processing are especially high, the price that is offered for scrap metal may drop in order to make up for the difference. That being said, if the costs associated with new metal mining are particularly high, this can make scrap metal and scrap recycling a more valuable endeavor.

Supply and Demand

One of the most basic economic theories that drives the price of scrap metal is that of supply and demand. This theory holds that the greater the supply of a product, the lower the price; the greater the demand, especially when supply is limited, the higher the price. When scrap metal is in low demand and high supply, scrap metal prices will be lower.

Price of New, Virgin Metals

Another element that can affect the price of scrap metal is the price of virgin metals – those that are newly mined and have not ever been used, recycled, or processed. When virgin metals are more expensive (which can be driven by energy and production costs and supply and demand), scrap metal becomes more valuable as an alternative to virgin products. On the other hand, when virgin metal prices drop, scrap metal becomes less essential, as industries can afford virgin metals instead.

Contact Scrap Metal Services, LLC for Fair Scrap Metal Pricing

At Scrap Metal Services, LLC, we always pay top dollar and fair market value for our customers’ scrap metal and are transparent in how our prices for scrap are determined. To learn more about our scrap pricing, what we buy and what we do not buy, and our locations throughout the United States, please reach out to us today.

We are a leader in the scrap recycling industry with a reputation of excellence, sustainable practices, and worker safety. Please call us today at 708-730-1400 or send us a message directly.