- June 7, 2021
- Posted by: @fort@
- Category: Uncategorized
Whether you’re a business owner who sells your scrap metal for processing or an average individual, understanding how scrap metal prices are set is important. You should understand the factors that affect scrap metal prices in Fort Lauderdale, FL, and in the wider United States. Reach out to one of your local scrap yards or scrap mills with any questions about the current prices that they are offering for scrap metals.
Energy and Production Costs
The costs of energy and production do have a significant impact on the price of scrap metal. Energy costs include the costs of gas, oil, and electricity. When the cost of processing is especially high, scrap metal prices often drop to make up for the difference.
Supply and Demand
One of the most basic elements that drive the price of scrap metal is supply and demand. The greater the supply of a product, the lower the price, and vice versa, so when scrap metal is in low demand and high supply, scrap metal prices will typically be much lower.
Price of New, Virgin Metals
Another factor that can affect the price of scrap metal is the price of virgin metals. These are newly mined metals that have never been used, recycled, or processed. When virgin metals are more expensive, scrap metal becomes more valuable as an alternative to virgin products. And conversely, when virgin metal prices drop, scrap metal becomes less useful as industries can afford more virgin metals.