If you’re a metal merchant or tradesman seeking the right price for your scrap metal, you’ll be keen to know when it’s the right time to get top value for your scrap materials. With the commodities market and stock market fluctuating by the minute, it’s understandable if you’re not quite sure how it all works. Within this article, we’ll discuss the key factors that determine scrap metal prices, helping you understand the industry a little bit better and appreciate how these factors can influence one another.
Domestic and global scrap metal markets
It’s important to note that it’s not just the domestic scrap metal market that influences scrap metal price. The international market plays a key role here too. The UK is the fifth-largest scrap metal exporter on the planet, and prices charged for scrap metal globally will influence how much value scrap metal is worth in your local scrap yard. As Kent’s leading scrap metal dealer, we scour the markets and monitor up-to-date rates, which allow us to keep up with the latest price trends and offer you the best value price for your metals. As with many commodities and goods, the supply and demand weigh heavily on scrap metal’s value.
Major price factors include:
- The pace of the UK construction industry, when the demand is slow, the price for scrap metals will decline.
- When the industry picks up, scrap metal becomes a more precious commodity, and prices rise.
Location, location, location
The scrapyard location can also play a part in the prices of scrap metal offered. Those scrapyards near cities and ports capable of transporting scrap metals overseas will have fewer overheads than an inland, rural yard. If a scrap yard is near a rural area where scrap metal is harder to source, the dealer may be more willing to pay a premium to take it off your hands.
If you need to sell your scrap metal, you will likely have greater leverage in value if large quantities are available. Typically, scrap dealers will be keener to buy your scrap if they can acquire it in bulk, reducing the cost per kilogram. If you can hold on to your scrap metal until you have a bulk amount, you may get a better price.
Ferrous vs non-ferrous metals
Non-ferrous metals are the most valuable scrap metals for recycling. Common non-ferrous metals include aluminium, copper, brass and lead. The simplest way to determine if your scrap metal is non-ferrous or ferrous is to test if the metal is magnetic. If the metal is magnetic, it is a ferrous metal. Ferrous metals tend to be less sought-after by metal recyclers, but they will still recoup some value if you have large enough quantities of them.
Did you know?
At Reclamet, our recycling site purchases a comprehensive range of ferrous metals, including scrap cars. We also purchase non-ferrous metals, including all the types of non-ferrous materials. If you have significant quantities of scrap metals, we offer a local scrap metal collection service. We’ll send an expert team member to pick up and transport the metals to our approved scrap yard, where we use only the latest processing technology to dispose of and recycle your materials. All you have to worry about is getting paid for your scrap!