Sunday 18 March 2018

Factors that affect Scrap Metal Prices

When it comes to determining the value of your scrap metal, there are a number of factors that affects its pricing.

• Demand and Supply

The demand and supply of scrap metals in various industries plays a major role in determining its economic value. If the supply of scrap metals surpasses its demand, the economic value decreases. Similarly, if the demand is greater than the supply, the prices increase significantly. The economic status of the country also plays a major role.

• Market Price of Metals

The market price of metals affects the value of the scrap. If the market price of a particular metal increases, its scrap metal prices will increase too. The right timing also matters. For example, when the weather is suitable, there is more demand for recyclable metals and hence you can expect a rise in price.

• Location

Location of the scrap yard is one of the most important factors. Customers prefer scrap yards that are close to their factories as this reduces the transportation costs. The price of scrap is higher in scrap yards located in an industrial area than in those located at far off places. You can look for scrap yards in Dubai that are located in industrial areas.

• Quality and Type of Scrap

Apart from the quantity, quality also plays a significant part in determining the scrap value. If your scrap is covered with insulation or corrosion, you’ll get a much lesser price as the dealer will have to clean up the metal to get the value for money. Clean, high quality scrap yields more money. The type of metal is another factor. Non-ferrous metals are considered more valuable than ferrous metals as the former more malleable and the latter is more vulnerable to rusting.

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Disclaimer: This article(s) has been prepared solely for information purposes, using publicly-accessible sources that are believed to be accurate and reliable at the time of publishing. LUCKY GROUP accepts no liability whatsoever for any loss or damage resulting from the use of information, images or opinions expressed in the report. LUCKY GROUP does not give warranty of any kind regarding the completeness, accuracy and reliability of the information included in the article(s).

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