MAR 01, 2023
Scrap metal recycling is an integral part of the global economy, helping to reduce waste, conserve natural resources, and promote new product production. Unfortunately, the value of scrap metal can vary considerably due to various factors. Let’s investigate key elements determining scrap metal value, such as the quality of the metal, supply/demand conditions, prices for virgin metals, international trade patterns, and our role at RCM Recycling.
Quality is one of the primary factors in determining scrap metal's value. Higher-quality scrap tends to have fewer impurities, such as dirt or rust, that could reduce its worth. High-grade scrap metal may be divided into types based on characteristics, with each having its market price associated with it.
Copper, for instance, is a highly valued scrap metal due to its superior electrical conductivity and corrosion resistance. Brass, on the other hand, is an alloy of copper with zinc which makes it stronger and more resistant; however, its value tends to be lower than copper due to its lower content of pure copper.
Supply and demand are two essential elements when determining the value of scrap metal. When there's high demand and limited supplies, prices tend to go up; conversely, prices may decline when there is low demand and ample supplies. This occurs because buyers are willing to pay more when there's a shortage of one type of metal; conversely, sellers may need to reduce their prices to find buyers.
For instance, during the COVID-19 pandemic, demand for aluminum cans surged due to a shift from bottled to canned drinks - leading to an acute shortage of these containers. As such, aluminum scrap metal's value skyrocketed.
The cost of virgin metals is significant when determining scrap metal value. Extracted from ores without use in manufacturing processes, these precious metals tend to increase in value when prices are high or decrease when prices are low. When prices for virgin metals are low, scrap metal's worth tends to decrease accordingly.
Copper's value as scrap metal increases when copper prices on the global market are high. This is because when virgin copper costs increase, manufacturers typically seek more cost-effective alternatives like recycled copper to save on production expenses.
Global trade has a major effect on the value of scrap metal. The global scrap metal market is highly interconnected, with prices in one country affecting those elsewhere. Demand for scrap metal from one region can also affect supply in another.
China, for instance, is the world's leading importer of scrap metal. When Chinese demand increases for it, the value of scrap metal tends to increase globally; conversely, when there is a decrease in demand, its worth decreases.
RCM Recycling, a scrap metal company, is an innovator in the scrap metal recycling industry. Our sophisticated technologies and processes help extract more value from scrap metal, making them essential for assessing its worth. We utilize cutting-edge technology to sort and process scrap metal efficiently. Their sophisticated machinery recovers valuable metals that would have otherwise been lost during recycling, increasing the overall value of scrap metal.
