Scrap metal pricing can be mystifying to many scrappers, especially those new to the industry. The truth is rather complicated, but less difficult to grasp than you might think. Knowing a bit more about how scrap prices work can help you get the most for your scrap!
Supply and Demand
The biggest factors affecting scrap metal prices are supply and demand. When more businesses need recycled metal, demand goes up, which drives prices up. When there is more scrap metal on the market than is needed, the supply is too high for prices to rise.
The best time to sell scrap metal is when there is a high demand for it and a low supply generally on the market. If you check scrap metal spot prices regularly, you can see trends, and notice when the market for certain metals goes up or down.
Of course, the thing that makes this difficult is that the supply and demand of one metal fluctuate without much influence from the supply and demand of other metals. The price of copper and the price of stainless steel aren’t necessarily closely related to one another.