Scrap Metal PricesPosted on 11 July 2014
Scrap metal prices around the world fluctuate on a daily basis. This applies to the giant international conglomerates in the very same way that it applies to the scrap metal collector in small town Ontario. It works this way because scrap metal, much like virgin ore, is considered to be a commodity, and commodity prices vary according to the dynamics of “supply and demand”. In short, whatever we see in market activity on a global scale, it all eventually filters down to the local level.
Scrap metal is part of an enormous global marketplace. As such, it’s no wonder that everything is focused on the major international trading exchanges, where buying and selling and dealing is a daily activity. Just by example, Commodity Exchange Inc. (COMEX) does more trading in precious metals than all other futures exchanges together – which means that global trading in scrap metals is equally huge. At the same time, the London Metal Exchange, which is regarded as the trading center for industrial metals, conducts more than 80% of the world’s non-ferrous business – it’s the place where metal prices are benchmarked for reference around the world.
On a more local level, dealers like Tal Metal Recycling Inc. are in business to purchase and process all kinds of scrap metal. As a full service scrap dealer, they buy, process, and distribute a wide variety of metals, including copper, steel, aluminum, brass, and iron. Because of their size, and the scope of their business activities, they can offer the most competitive rates in the market. Of course, they base their pricing on the most current data available, and when demand for scrap metal increases, they are hungry for more supply. Quite simply, when demand is high, so is the price, and for the local collector, this is the time to collect, prepare and deliver to a dealer.
In many situations, a scrap dealer can provide payment for metal scrap almost immediately. And for the serious collector, a good volume of scrap, with quality content, and high demand metal, can translate into a substantial payoff. At the same time, it’s important for the collector to be on top of the latest pricing trends – after all, one doesn’t want to buy high and sell low, so collection should always focus on high demand metals. Most importantly, the best price from a dealer will come from scrap that is properly separated, as clean and pure as possible, and a decent amount of volume.
As a collector, being well connected through the Internet and keeping tabs on daily prices is critical to capitalizing on the scrap market. Like anything, knowledge is power, and being on top of market prices makes the collector a reputable supplier to any dealer. As for the Internet, things are very sophisticated today – there are APPs available for instant pricing comparisons, and there are e-mail notifications to keep abreast of market variances. It makes for a collector that understands the marketplace and sets the stage for a long lasting business relationship between collector and dealer.