3 Factors that Impact Scrap Metal Prices

Metal recycling in Toronto has grown in popularity in recent years due to its financial benefits and an overall increase in sustainability awareness. Any old appliances, tools, or home elements can be recycled for excellent value if they’re taken to the right place. However, metal prices can fluctuate regularly due to a few factors. At TAL Metal, we pride ourselves on providing excellent value to customers who recycle at one of our Toronto metal scrap yards. Contact us today for a free estimate on your scrap metal.

Read on to learn more about the main factors that impact scrap metal prices!

1. Condition and Cleanliness

The condition of your metal plays a role in the prices you will receive for it. Providing clean scrap metal that is free of any impurities or coatings like paint or wax will increase its value. Additionally, presenting metal that is clean and rust-free will earn you more money, as less processing is required to recycle and reuse said metal effectively. Before recycling your metal, ensure that it is cleaned and isolated from any other items. Remove any plastic, rubber or non-valuable parts. 

2. Demand

The demand for scrap metal is closely linked to the performance of industries that use metals, such as construction, automotive, and manufacturing. For instance, during periods of economic expansion, these industries often ramp up production, increasing the demand for both raw and scrap materials. The opposite occurs in periods of recession, where metal-based commodities are produced less. Higher demand leads to increased prices for scrap metal.

3. Supply

The general amount of scrap metal available in the economy will affect supply and prices. The more metal there is available in the market, the lower the prices, as the commodity is easily accessible and widely available. However, when metal becomes scarce, there is less supply, increasing the value of the metal. Lower supply leads to increased prices for scrap metal.

4. State of the Economy

The state of the economy has everything to do with scrap metal prices; in fact, it impacts the prices of just about everything.  During an economic recession, there is less production of metal-based goods. This lowers the value of metal, as it is not in demand. During periods of economic growth, the opposite is true. Production increases, which increases the demand for metal, therefore increasing prices.  

5. Grade and Type of Metal

Metals with a high level of purity are likely to fetch higher prices than those that are impure. Lower-quality metals often contain impurities or alloys that diminish their value. If you are unsure whether your metal in pure or not, contact TAL Metal!

Fetch Better Prices with TAL Metal

Like most other goods in the world, scrap metal prices fluctuate regularly due to a variety of economic factors. The state and quality of your scrap metal play a significant role in how much you’ll get from any Toronto metal scrap yard. Before metal recycling in Toronto, you’ll also want to consider the state of the economy and whether or not it will support optimal metal prices. In a recession, it may be best to hold onto your scrap metal. For any of your scrap metal needs, contact TAL Metal. We’ll ensure you get a fair price for your contributions. Contact us today for an estimate!

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