There is a lot to know before you decide to take your scrap metal in to trade. You want to know what is the going rate at the time so you can decide how much you can earn. What type of metal do you have and how much of it you have to sell also need to be considered before you go.
So you start with an online search of scrap metal prices from the different yards in your area and suddenly you realize that all scrap metal yards do not quote the same prices; sometimes they are not even remotely close. There are many reasons why this may happen and why scrap metal pricing by the pound is the more preferred choice for many.
Why The Prices Vary:
One of the main reasons why the prices vary is because of the simple law of supply and demand. Of course, if you're selling your metal to a scrap yard chances are that the yard is not just collecting it for their own fun. They plan to resell it themselves possibly to manufacturers of some kind. This is where supply and demand comes in. If a manufacturer is in need of steel they will probably be willing to pay a higher premium than for another type of metal.
The Condition Of The Metal:
Another reason that scrap prices vary is because of the condition of the metal you're selling. If your metal is in poor condition, dirty, rusty, and in need of clean up it will fetch a lower price than a clean metal. Even if you choose scrap metal pricing by the pound the final price will need to be adjusted to factor in these conditions. For example, you would think that a car would hold quite a bit of scrap metal and would fetch a hefty price. But, if the car is more than 15 years old, much of the metal is no longer useable so the price you get per pound will be far less than a car that is more up to date.
Other factors may also play an important role in scrap metal pricing. These include the current condition of the economy, how much of the metal is available now, and what manufacturers the dealer plans to sell to.
Getting a quote for scrap metal prices is not as simple as stating a standard figure. It involves being knowledgeable about the industry and the many factors that can affect its pricing. So even if you plan to do your scrap metal pricing by the pound or you expect to structure your pricing in another way. The more you factor in these additional considerations the more competitive your pricing will be.
Trading scrap metal can be a pretty good way to make extra cash or to turn a business. There will always be a need for metal in all of its many forms so the more you take advantage of the trends in the market the more potential profit you will have and the better your returns will be.