Anyone who knows recycling will tell you that metal is a valuable resource. Not only can metal recyclables be reused over and over again for raw materials needed in manufacturing, construction, and other areas of commerce—thus preserving the environment by reducing waste, over-mining, excess energy expenses, and pollution—but they can be used like “virgin metals.” As a result, they maintain superior value despite constant fluctuations in the market.
But how and why do prices for metal recyclables fluctuate like they do?
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Supply and Demand Affects Metal Recyclables
Like many other commodities, prices for metal recyclables fluctuate through natural supply and demand. If we go back to high school economics for a second, the price for anything is always driven by supply and demand. So, if demand goes up, prices go up. If supply goes down and more metals are disposed of instead of recycled, prices go up.
Likewise, if demand increases but supplies are low, prices will rise even more. Even with this, metal recyclables will almost always see a price hike. For starters, more international companies than ever before require metal to operate their businesses and various industries. On top of that, mining for metal recyclables comes with higher labor costs and may be impacted by depleted natural supplies.
As a result, the demand for metals is growing throughout the world.
When Do Metal Prices Change and How Often?
While not as volatile as stock market prices, metal recyclable prices can change every day—possibly several times each day. A reliable recycling company like Texas Recycling in Dallas, TX, will continually check market prices to ensure they pay fair prices for metal recyclables.
Generally, prices don’t change drastically from one week to the next. One can expect weekly changes of a few cents per pound or dollars per ton. That said, even small price changes signify a stable economy.
Here are a few additional reasons why prices for metal recyclables fluctuate like they do:
- Quality and purity — Quality and pure metals yield higher prices.
- Location — If regular and consistent buyers and sellers of metal recyclables aren’t close to each other geographically, higher transportation costs need to be factored into the price.
- Quantity — Large volumes of high-quality metals will demand a higher price.
- Season — The demand for metal recyclables often fluctuates with seasonal changes in construction and manufacturing schedules. Also, if mining for new ores isn’t possible during certain seasons, the demand for metal recyclables goes up due to the limited supply of new ores.
- International economies — The need for metal imports to countries such as India and China affect prices in the United States. These countries are large buyers, so when their economies slow down, their demand for metals decreases. And vice versa.
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Ferrous Metal Prices vs. Nonferrous Metal Prices
Iron and steel scrap, or ferrous metal, comes in consumer products like automobiles, household appliances, industrial structures, buildings, railroads, trains, bridges, ships, and farming equipment. As a result, ferrous metal is the most recycled material in the world.
Meanwhile, aluminum, copper, lead, nickel, tin, and zinc are among the many base metals that are referred to in the industry as nonferrous scrap. Pound for pound, nonferrous scrap is highly valued.
The Recycled Materials Association (ReMa) estimates put nonferrous metals at less than 10% of the total volume of recycled materials processed in the US but at more than 50% of the total value of recycled materials traded.
Texas Recycling in Dallas Can Help With Metal Recycling
If your business has reusable metal recyclables, call Texas Recycling at 214-357-0262 to find out how to get paid for your goods! Texas Recycling monitors commodity and financial markets to provide up-to-date pricing on every type of metal we purchase. All materials are weighed on certified scales and then tracked into a computerized database. Each weight is recorded on a scale ticket for payment. These steps ensure accurate and efficient payment and the best prices possible for your scrap metal.
Our creative solutions help companies embrace environmental responsibility and sustainability. Texas Recycling offers personalized customer service to our commercial and indsutrial customer accounts. From scheduled pickups for large commercial entities to our Public Buy Back Center for individuals and smaller businesses, we have a recycling solution to meet your needs.
Help the environment and your bottom line by calling Texas Recycling at 214-357-0262 to get started on a commercial recycling or industrial recycling program for your organization.