Determining Factors in Pricing Scrap Metals.
Scrap metal dealers have been buying all unwanted metals that people in the household throw away and paying you back. There are several types of metals that are sold as scrap, among them been copper, aluminium, brass, etc. all attracting different prices from different metal dealers. It also depends on the location of the dealer and the seller and the amount of scrap metal available for disposal. As compared to the previous years, the prices for scrap metals have gone up. The dealers normally buy scrap metals on a per tonne ratio; however, there are other rare types of metal that are usually purchased on a per kilogram basis.Some metals are sold on a per tonne basis while others which are considered rare are sold on a per kilogram basis, depending with the king of metal. We discuss some of the factors that determine how the scrap metal will be priced.
The major determining factor of the scrap metal price is the type of metal. The people involved in selling scrap metals normally subdivide scrap metals into various categories and subcategories, depending on the type of metal, to assist them in setting the price for each metal. They also categorize scrap metals into grades, normally grade one and two, the difference been the size of the metal and the type of the primary consisting metal. Do not sell blindly without knowing the type of metal you are selling as the dealers can take advantage and buy at a lower price. Also shop around to get various quotes from different dealers.
Another factor is the location of the scrap metal dealer whereby in areas with several dealers, there will be competition and the prices can be relatively high as compared to areas where there are few dealers. There are few dealers in rural areas especially in areas with no refining companies, therefore prices in this areas will be low as there are few dealers.
The quantity in terms of tonnage or kilograms will also dictate how much the buyer is willing to offer. It is advisable you pile the scrap metals instead of selling in small quantities so as you get high prices as the seller.
The weight of the metal during the hot season is not the same as during winter, affecting the prices of the scrap metal during the two seasons. So as to get maximum value for your metals, collect them and store in a yard safely, later sell them during the winter season at a relatively high price as companies to the amount you would have sold during the winter season. The same logic also applies to the dealers who also buys in large quantities during summer and resell to industries during winter.
The status of the country’s economy will also determine the market for scrap metal. Countries experiencing slow economy will have few developments projects, reducing the need for metal or steel used in car and construction industries.