The changing price of scrap metal
5th Dec, 2016
If you’re looking to scrap your car, you might be looking at a wide variety of quotes. These aren’t just based on the scrap dealer – although that will have a part to play.
There are other factors at work that will cause the price of scrap metal – and your old car – to go up or down, so read on to find out more about what they are and how you can still get the best price for your old banger.
Why do scrap metal prices change?
The amount you get offered for your scrap car will vary by quite a bit depending on who you ask and when. But why is that? It’s not just different dealers coming up with their own prices – dealers, including us, set their scrap metal rates according to a number of factors, so they can stay make enough money while offering you a competitive quote.
Some of the reasons scrap metal prices change include:
Market Price: just like prices on the stock market and foreign exchange vary from day to day, scrap metal values will change too. Each metal will have a different price, and your scrap car dealer will know how much profit they can make from your old car by weight.
Industry Demand: once a scrap dealer has bought your old car, they have to process it and sell it on. If the metals are in high demand by other sectors like the construction, electronics and manufacturing industries, they’ll be able to get – and offer you – a better price. And likewise: if not, prices will drop.
Time of Year: commercial schedules, changes in weather, big holidays like Christmas and New Year – all of these seasonal changes can have an impact on the demand for – and price of – scrap metal, which means that your dealer may not be able to offer you as much at quiet times.
Quantity: the busier a scrap dealer is – and the more metal they’re able to process – the better the prices they offer are likely to be. Scrap trading is a numbers game, and if a dealer can make a decent profit on lots of metal, they’ll be able to offer you more than a dealer who’s not bringing in as much metal.
International Trading: countries whose manufacturing industries are booming, such as China and India, have a large part to play in the supply and demand of raw materials such as scrap metal. When production peaks in those countries, more metal is needed, higher prices can be charged and you may get a better deal for your old car.
OK, so how do I get a good price if I scrap my car?
All those factors can make your head spin. The good and bad news is that there’s not really much you can do about most of them to make sure you get a good price on your car.
What you can do is keep an eye on things closer to home – we’ve got some great tips on how to get the best price for your scrap car so take a look at those now to get it sussed.
