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Factors that Determine the Prices of Scrap Metals
Scrap metal dealers have been buying all unwanted metals that people in the household throw away and paying you back. Prices of scrap metal vary depending on the dealer and the type of the metal, from bras, aluminium, copper, steel, etc. Based on where the scrap dealer is based, and where the seller is also based, and the quantity available for sale, this two factors will determine the price of the scrap metal. The prices have been changing in the recent past and are now considered higher, compared to the previous years. 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 kind of metal for sale is the major determining factor when it comes to pricing he metals. 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 further grade them into two or more grades guided by the metal size and the metal alloy. Know the kind of metal you will be selling to the dealers so as you get the best price. Before selling the scrap metal, always obtain few quotes from the available dealers in your locality for comparison.
In areas with several scrap metal dealers, the prices of scrap metals tend to be high as there is competition, unlike areas with few dealers whereby the seller will be left with no choice but to sell at the price the dealer is willing to buy, leaving the seller at his mercy. If selling scrap metals in rural areas where there are no refining companies, there will be little or no competition with only one or two dealers available to buy.
Quantity of the metal available for sale will also determine the price as the more the scrap metal, the higher the prices. It is advisable you pile the scrap metals instead of selling in small quantities so as you get high prices as the seller.
During summer, the prices of scrap metals goes down and rise again during winter in some areas. Guided by this, you can collect your scrap metal and hold them in a secure yard during summer, later sell them during winter season at a higher price. The same logic also applies to the dealers who also buys in large quantities during summer and resell to industries during winter.
Prices of scrap metal are also determined by the economic status of the country. A slow economy will mean less developments in terms of construction of structures that require steel such as bridges as well as other industries such as car industries, thus slowing down the demand for metal.