The Future Of Scrap Metal PricesPosted on 06 November 2015
Scrap metal can be found all over the place, and collecting scrap metal for sale is a great way to make secondary income in your spare time. It’s an opportunistic pursuit, and there is no shortage of scrap metal to be found. Scrap metal prices are affected by a variety of factors, including local supply, location of the scrap metal recycler, foreign markets, and the price that the metal in question is currently being traded at. The purpose of this article is to expand more on these factors to help prospective scrap metal harvesters predict how the scrap metal market and scrap metal prices in general will fluctuate in the future.
Like any commodity, scrap metal prices are currently quite vulnerable to change thanks to a variety of factors at play. The local supply of any sort of scrap metal is the most important determinant for the scrap metal prices provided by your local scrap metal recycler, such as Tal Metals Inc. Let’s say the global standard price for scrap iron is around $100/tonne, but you live in an area where scrap iron is everywhere, and every person in town happens to collect scrap metal, specifically scrap iron. While the global price for scrap iron is $100/tonne, the abundance of the local supply of scrap iron will affect local scrap metal prices such that it could decrease to something as low as $25/tonne. The inverse can also take place for local scrap metal prices; if there is an interested buyer for scrap iron that is located fairly close to your local scrap metal recycler, the price of scrap iron may go up if the supply is being outpaced by the demand.
The location of your local scrap metal recycler is also an important factor when trying to predict scrap metal prices. It’s important to pay attention to developments around your area that may impact the transport of scrap metals, which will then impact scrap metal prices. For example, if you live in the middle of rural Manitoba, your freight transport options are quite limited and as a result, costly. If a new railroad extension or a new highway is then given the green light, however, that new development will lower the cost of transport for scrap metals and increase scrap metal prices that your local recycler can pay out.
The last important factor is foreign markets. China is the largest player in this equation, and analysts predict that the growing middle class of China, combined with pressures to be more environmentally responsible, will positively impact scrap prices in the future.
Overall, predicting future scrap metal prices involves many more factors, but the overall theme is that to be a successful scrap metal collector, one needs to pay attention to the news and keep up to date with both local and international developments. Additionally, don’t be afraid to consult your Toronto local scrap metal recycler like Tal Metal Recycling. They offer insight and tips on when the best prices will occur, and offer great prices for the scrap metals you’ve harvested.