Scrap metal recycling is increasing worldwide as it saves natural resources, is less costly, and saves time. Determining scrap metal prices is an essential factor in the recycling industry. The factors affecting scrap metal prices are as follows:
1. Quality & Quantity of Scrap:
The quality of the metal is an essential factor in determining scrap metal prices. Corroded, insulated, and mixed metals like aluminum mixed with steel are less valuable. The cost of cleaning, removing the insulation, and separating the metals is higher. A huge quantity will pay more to the yard for scrap metal.
2. Demand & Supply:
Demand and supply are the primary determinants of scrap metal prices. With less supply, more demand sets high prices and vice versa. Globally, prediction that lead supply will run out by 2030 increases the demand for recycled lead and pushes to pay higher prices for reusable or recycled products.
3. New Metal Demand & Prices:
If the demand and price for new metal are high, the scrap metal prices will be high. For example, if new copper prices are high, demand for recycled copper will increase, resulting in increased scrap metal prices.
4. International Trade:
Türkiye and China are the most influential scrap metal buyers in international trade. If they demand, the prices will increase; otherwise, a bearish trend will be in the market. For example, Türkiye had a sluggish demand due to the earthquake; the scrap market remained slow when it returned and announced construction activities to begin. The scrap market had shown an upward trend and gained in price.
5. Fuel Prices:
High fuel prices mean less buying of scrap metal due to the high cost of recycling and transportation.
6. Renewable Energy:
Growing demand for renewable energy is increasing the demand for scrap metal and prices because scrap metal recycling requires less energy, is less costly, and is environmentally friendly.
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