There is money in scrap metal. For as long as the crap metal industry has been flourishing, there has been a consistent rise in scrap prices. It is estimated that over a million tons of scrap is recycled around the world every year. As a result, it has become a business that has resulted in the generation of large amounts of revenue for different people. Scrap prices have been on the rise and there are a number of factors which contribute to the rise of scrap prices.
Growth of the industry
The growth of the industry is an indirect factor that has led to the rise in scrap prices. The growth of the industry is attributed to human demand for metal and demand by other countries.
• Demand for metal
There is a human demand for metal, which continues to expand by the day. Metals are very important commodities to human beings. Man uses it in different areas of his life. Fortunately, metal can be recycled many times without losing its value.
• Demand by other countries
There are many foreign countries that demand ore and scrap metal, such as India. When the prices for coal, copper and iron ore rise, the prices of scrap also skyrockets, but this is still cheaper compared to buying new metal.
The economy and environment benefit in several ways from recycling of scrap. Recycling grants human beings an exhaustive resource of metals that can be reused again and again. This goes a long way in saving energy and lowering pollution. As long as there is demand for something, those who are in control of it will try to cash in as much as possible- making as much money as possible. Therefore, as the metal industry continues to grow, the scrap industry has also been growing steadily, with those who are in control of it demanding whatever they deem fit.
Market rate, quality, quantity and purity
There are a number of direct factors that influence the prices of scrap. The value of scrap material often rises due to the prevailing market rates. The quality, quantity and purity of the scrap will have a direct correlation to the price it fetches. The more pure the metal is, the more it will fetch in the market. The same applies to its quality and quantity. If the quality is high you can expect to fetch a higher rate. If the quantity is large, it is borne to fetch a higher price as well.
Region and community
Scrap metal prices often vary by region and community. But the reality on the ground is that the scrap metal that you have are lying around your homestead could potentially fetch you some big bucks. Junk cars, wiring or leftover copper piping, broken appliances and soft drink cans can be considered scrap metal. The prices of scrap metal vary on a daily basis, so before turning over your leftover metal it is a good idea to check out online so that you may have an idea of what the prices are. This will grant you the ideal opportunity of determining whether you are getting a fair deal.