Exploring Metal Pricing at Los Angeles Recycling Center
“Scrap metal prices” is a popular search online. That’s because the scrap metal recycling Industry is quite popular. Metal recycling facilities like ours don’t get a lot of press, but those who know understand that money to be made from recycling old, scrap metal. That search is popular especially for scrappers, because prices will fluctuate for someone who’s looking to make cash from scrap metal and it’s important to try to get the best price available.
So what are some of the things that can cause fluctuations in the prices of scrap metal? Our sister company in Vermont, Bolduc Metal Recycling, has a very interesting article that goes into detail about all these factors. We paraphrase it here.
The first reason for fluctuation in scrap metal prices is supply and demand. This is one of the bedrock economic reasons for any commodities price to fluctuate. Anytime there is a greater supply than there is demand for a product or service, the price will go down. That, apparently, is the case with scrap metal. More and more scrappers are entering the industry which means more supply and lower prices. Scrap metal prices are tied to elements of the economy such as housing or construction. For example when there is a period of new building in a locality, the demand for building materials such as scrap steel f\or scrap aluminum we’ll go up, driving the prices of those metals up as well.
Another factor is the stockpiled levels of various metals around the world. Those countries that have significant supplies of various metals don’t need to purchase more. They are self-sufficient in this respect. Conversely, when a country or city does not have enough of a certain type of metal that will drive the price up because they’ll need to buy those metals.
One aspect you may not have thought of–and this concerns the trading or acquisition of scrap metals internationally–is the exchange rate for certain currencies. The Bolduc article gives the example of Indonesia and Vietnam which both have weaker currencies. Countries like these frequently look to different scrap metal providers for better prices. When they change suppliers it can cause scrap metal prices to fluctuate around the world.
Scrap Metal Pricing in Los Angeles
In areas like Los Angeles, scrap metal recycling centers abound and there’s lots of competition so this may cause prices to go down in heavily populated urban areas. There are any number of factors that can influence scrap metal pricing but you can always call TM Scrap Metals for the latest updates before you bring your scrap metals for cash. And remember,we have mobile recycling and can come to you! 818-771-0510.