What to Expect from Scrap Metal Prices in 2021

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What to Expect from Scrap Metal Prices in 2021

For businesses that rely on metal for production and manufacturing, as well as those who sell scrap metal or process scrap metal, metal prices can have a big impact on the business’s bottom line. While it’s impossible to say for sure what 2021 will hold in terms of scrap metal prices, here’s a quick overview of some of the predictions. To stay in the know about metal prices, or to ask any questions about metal prices or scrap metal processing, reach out to our team at Scrap Metal Services, LLC today.

Supply Chain Holes Expected to Push Prices Higher

According to an article published in Recycling Today, metal prices may very well climb in 2021, at least during the first half of the year. This is likely to be fueled by holes in the supply chain caused by the pandemic and the pending widespread vaccination, both of which are expected to weigh heavily on the supply side of the metal market. On the demand side, global economic recovery is likely to influence and drive demand, creating a gap between supply and demand that drives metal prices upward. 

Additionally, towards the start of the new year in the midst of winter weather, prices are also supposed to be a little bit higher as a direct result of the challenges of moving metal in cold, snowy, and icy conditions. Transportation is often hampered during the coldest months of the year, which impacts ports worldwide. 

Metal Prices Predicted to Stay Strong Over Next Few Years

Recycling Today isn’t the only one that believes that metal prices will remain high over the next year, and perhaps even longer; iScrap App also predicts that “copper prices and other metals are going to be strong over the next few years.” This prediction is based on an increase in the demand for commodities in the past few weeks – a prediction that is expected to last into the future. The coming vaccine also indicates that markets are likely to remain strong. Oil prices have also increased recently, which suggests that there will be a rebound in most markets moving into the new year. Both ferrous and non-ferrous metal prices are anticipated to increase in 2021 and demand is likely to continue to rise.

Scrap Metal Services, LLC: Meeting Your Metal Processing Needs

The fact that metal prices are on the rise means that it’s a good time to sell your scrap metal. At Scrap Metal Services, LLC, we pay cash for your metal and handle all weighing, separation, and processing on-site. To learn more about selling to us or to ask a question about metal pricing or scrap metal recycling, reach out to us today. 

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.