Plenty of scrap metal collectors will keep clinging to their metal piles in hopes that the metal rates might increase. In the meantime, they will keep collecting any metal they can get their hands on and adding to the pile. When the rates finally increase, they are eager to give a scrap metal company a call.

While this can be a good way to get a little bit more money for your scrap-collecting efforts, it is only suitable for those who are constantly keeping their eye on local scrap metal rates. Metal prices can quickly fluctuate because there are quite a few factors that affect their demand or value. 

Let’s take a look at some of the key players when it comes to scrap metal resell rates.

Supply and Demand

Supply and demand are some of the biggest factors that affect local scrap metal rates. If there is a lot of scrap metal available, the market will become full and prices will drop. If there is a huge demand for scrap metal (from international sources or local manufacturing industries, the rates for metal will quickly increase. 

Supply and demand also play a huge role for different types of metal. Metal types like copper and aluminium have a much higher selling rate compared to iron because these metals are scarcer yet plenty of recycling plants are eagerly looking for these metals.

Location

Scrap metal is heavy and can be expensive to transport to different cities and plants. Manufacturing industries are often more likely to pay higher rates for local suppliers because this allows them to cut back on transportation fees. Scrap metal companies outside of your city, on the other hand, will offer lower rates for metal because they have to spend so much on hauling the metal to their location.

Amount of Scrap Metal

Scrap metal companies often pay more for large scrap piles compared to small piles. There are several reasons for this. Firstly, they save on transport since they can collect a huge pile of metal in one single trip whereas collecting small piles all over a city can increase transportation fees. Fewer transactions also need to be done when scrap metal companies buy in bulk which can also reduce their administrative costs. 

Time of the Year

The demand for scrap metal tends to be higher during the warmer months of the year. This is because certain industries like construction companies tend to get more projects during summer compared to colder seasons when many businesses tend to slow down.

Metal Quality

The quality of the metal can also impact its sale value. Most metals are made from a blend of metals.  Stainless steel, for example, is made from iron and carbon. Copper items are also made from a blend of iron and copper. The composition of the metal can affect its rates because certain blends offer different qualities or might be more corrosion-resistant.

The same goes for iron. If iron is still in good shape, you will get a good rate for it. Iron that is significantly rusted, on the other hand, might not have such a high sales rate. 

Get The Best Rates for Scrap Metal in Melbourne

At Danny Scrap Metal, you will always get a good rate for any scrap metal you collect. Our large scrap metal business isn’t as affected by the local rates as other smaller industries. Because of this, we can offer more stable, reliable, and higher rates at all times. With our company, you don’t have to waste any time watching the local market rates or wait endlessly for prices to increase. Give us a call and get your scrap metal sold so you can make a quick profit.