Metal prices can be influenced by a variety of factors, and if you’re interested in selling or recycling scrap metal, it’s important to understand these different causes. Knowing what kinds of factors can most significantly affect metal prices can help you earn the maximum return on your discarded metal pieces.
Here at Power Force Recycling, we’re frequently asked about our metal prices and why they seem to fluctuate so often. Below, we’ll review the top four factors that impact pricing:
- Supply and Demand – Just like any other material or product, when the number of people who want the item exceeds the amount of material available, prices will increase. Similarly, if we accumulate too much scrap metal and there isn’t enough demand for it, prices will go down.
- Economic Conditions – When the economy is doing well, industrial and commercial projects increase, so there’s often more demand for scrap metal. If the economy falters and commercial activities decrease, metal prices will fall as well.
- New Metal Prices – Recycled metal prices typically increase or decrease depending on the costs of new metals. For example, if brass fixtures become very popular, demand for recycled brass will rise because using recycled metal is more cost-effective than using brand-new metal.
- Rules and Regulations – Different types of government regulations can seriously affect the way scrap metal is collected and recycled. For example, higher standards for environmental regulations can force recycling companies to adjust the way they process their items, which can drive up costs.
If you’d like to learn more about our current metal prices, please feel free to reach out to our team.