Smart Ideas: Options Revisited

Determining Factors in Pricing Scrap Metals.

Scrap metal dealers have been buying all unwanted metals that people in the household throw away and paying you back. Prices of scrap metal vary depending on the dealer and the type of the metal, from bras, aluminium, copper, steel, etc. Scrap metal price is also determined by the geographical location of the dealer and the person selling them, metals, as well as the amount of scrap metal available for sale. The prices have been changing in the recent past and are now considered higher, compared to the previous years. The dealers normally buy scrap metals on a per tonne ratio; however, there are other rare types of metal that are usually purchased on a per kilogram basis.Some metals are sold on a per tonne basis while others which are considered rare are sold on a per kilogram basis, depending with the king of metal. We discuss some of the factors that determine how the scrap metal will be priced.

The kind of metal for sale is the major determining factor when it comes to pricing he metals. Dealers break down scrap metals into various categories and further subdivide them again into other small subcategories to set the price as per the metal category. They also categorize scrap metals into grades, normally grade one and two, the difference been the size of the metal and the type of the primary consisting metal. Do not sell blindly without knowing the type of metal you are selling as the dealers can take advantage and buy at a lower price. Before selling the scrap metal, always obtain few quotes from the available dealers in your locality for comparison.

In areas with several scrap metal dealers, the prices of scrap metals tend to be high as there is competition, unlike areas with few dealers whereby the seller will be left with no choice but to sell at the price the dealer is willing to buy, leaving the seller at his mercy. If selling scrap metals in rural areas where there are no refining companies, there will be little or no competition with only one or two dealers available to buy.
The quantity in terms of tonnage or kilograms will also dictate how much the buyer is willing to offer. It is advisable you pile the scrap metals instead of selling in small quantities so as you get high prices as the seller.

The weight of the metal during the hot season is not the same as during winter, affecting the prices of the scrap metal during the two seasons. It will therefore be wise to wait and sell all your scrap metal during the winter season to attract high prices. Dealers also have a tendency of buying in large during summer and reselling to the refineries during winter season to attract high values.

The status of the country’s economy will also determine the market for scrap metal. If the economy is slow, there will be less demand for metal since projects that requires metal are not ongoing, such projects been in car and road industries.

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