Understanding The Factors That Influence Scrap Metal Prices
Selling scrap metal is a great way to earn some extra cash. In Australia, 60 percent of scrap is recycled. It also happens to be beneficial for the environment and, thus, less waste overall. So, if you are looking to sell some scrap metal, you have come to the right place.
One of the things a lot of people are curious about scrap metal is the pricing: Which types of things are kept in mind to determine how much a particular kind of scrap metal would cost you should be aware of?
The good news is that even though the scrap metal market might seem a bit challenging to navigate straight off the bat, it’s ultimately fairly straightforward. In particular, if you are looking to sell scrap metal in Perth, you are going to be pleasantly surprised that there is great demand for your scrap.
Overview Of Scrap Metal Pricing in Australia
Scrap metal pricing can go up or down depending on what’s happening in the market. If there’s more demand for a certain type of scrap metal, its price will probably increase. If there’s less demand for scrap metal, the prices will likely go down.
You can generally follow the rules of supply and demand to better understand how scrap metal pricing happens. Then, pay attention to the market to make more money from scrap metal.
If prices are not that high, you might hold onto your scrap metal a bit longer to hopefully get more for it. On the other hand, you would want to sell your scrap metal as soon as possible if prices are favourable.
Supply and demand are perhaps the main driver of scrap metal pricing and should certainly be at the top of your list when figuring out when to sell yours.
Key Factors That Influence Scrap Metal Prices in Australia
There are more specific things to consider about scrap metal prices along with supply and demand. Here are some of the major things to consider when it comes to selling your own scrap metal.
Quality of the scrap metal
Quality can significantly affect how much you’ll receive for your scrap metal in Perth or elsewhere. For example, you’ll likely get a lower price if the scrap metal is covered in residue and insulation or if corroded.
These types of metal need more time to clean and process so they can then be recycled. You might want to clean the scrap metal before you try to sell it. Doing so will make for top-quality scrap metal and more money in the bank at the end of the day. It all really depends if the hard work is worth it to you!
The volume you want to sell
More scrap metal most commonly means more money. So, bringing in a greater quantity of scrap metal for recycling will usually give you a higher price in return.
it’s usually best to try and get in as much scrap metal at once as possible.
It also means less transactions for the scrap yard. They would be able to sell the scrap metal in bulk rather than in smaller batches.
Where do you go to sell
Where you live can also impact how much you will get for scrap metal. You can generally get a good price for your scrap metal in Perth. It is common for scrap metal not to be entirely processed at the scrap yard where you sell it. Rather, it usually needs to be transported somewhere else for processing.
The further the scrap metal needs to go, the less the price you’ll likely get. That’s because the scrap yard will have to pay for the transportation costs, which will likely be much higher.
Selling your scrap metal in the big city could also mean depressed scrap metal prices, because the cost of doing business is usually higher. Perth has some of the rates in Australia
International trade
You’ll also want to consider the international market when it comes to selling scrap metal. Countries like India and China that import a lot of scrap metal affect global prices as their demand goes up and down. So if there is a demand for scrap metal, prices will probably rise.
Opposite to this, if the market appetite goes down in the global market, then so do the prices internal. Importing countries might also change their policies which could influence the quantity of scrap metal they want to buy. This, in turn, can have an impact on the price you end up getting.
Market prices of new metals
New metals are one more player in the world of scrap metal pricing. Thus, changes in the price of new metal will have an impact on scrap metal.
That’s because if the price of a particular new metal rises, some companies will want to use scrap metal instead to help save money. This raises the demand for scrap metal and the prices as well.
If the price of some kind of new metal is to go down, then the demand for that scrap metal ends up crashing. Then, the cost goes down too as a result.
Prevailing trends
Current trends work into the demand for a given type of metal. If a particular industry, such as construction, all of a sudden needs a specific type of metal due to a change in the market, the demand for that metal will increase. As the demand shoots up, so does the price.
Paying attention to the ongoing trends in different scrap metal-related industries can help you figure out when to sell your stash. You want to get the greatest bang for your buck, after all.
Weight of the scrap metal
Last but not least is the total weight of the stuff you are trying to sell. Again, this is related to the volume because the more you sell at once, the more money you will likely make.
Once you’ve handed over a scrap metal to recycle, it will be melted down for resale. The more the weight the melted-down metal is, the more money you will make from it. In fact, both weight and volume will influence what you will get out of recycling the scrap metal.
Recycling Your Own Scrap Metal
Is it time to sell your scrap metal? Even if you are not sure about the prevalent scrap metal prices and whether or not it’s an excellent time to sell, it’s important to look into it. An expert such as our team at WA scrap metal can help you see exactly how much your scrap metal is going to sell for and then help you recycle it.
Scrap metal in Perth is our area of expertise, and we’re excited to help you experience the benefits of scrap metal recycling.
Looking for a scrap dealer in Perth? Contact us today for more information on our commercial scrap removal services!
