Every year, millions of materials, ranging from metal to plastic to paper (and a whole lot of others), are getting repurposed everywhere in the world. That’s the power of recycling. Collins Recycling is a scrap metal business right at the centre where among the main targets is to buy more metals from other companies and homeowners. These used metals often go to landfills when they can be recycled and reused in new products.
If you have some scrap metal in your house, garage, shed, or anywhere on the property, you may be interested in selling them. That’s right! There’s cash to be earned from your previous gadgets, appliances, and even your old roof. And because you’re thinking about selling, you’re probably wondering how much scrap metals cost.
When researching, you will most likely notice how quickly scrap metal prices change. Depending on which metal you’re eyeing, you could even find the prices changing on an hourly basis. That’s how volatile they are. But what exactly causes these shifts in prices? This blog explores the seven main factors that affect scrap metal prices in Perth and Australia-wide:
1. Supply vs Demand
As with any product, the increase and decrease in scrap metal prices in Australia are directly proportional to the demand for the metal. Many industries, such as technology, transportation, and construction, have a permanent metal necessity.
Scrap metal is collected first and then recycled to create a new product, including electrical cables, rebar used in bridges or buildings, and mobile phones. While the activities in these industries are typically constant, they also slow down at times. There are also extended periods where the demand is so high, causing the scrap metal recycling sector to respond positively.
To summarise, the higher the demand for scrap metal, the costlier they get. The less need there is, the lower the price. So, if you’re planning to sell, try to determine first whether it is a good time to do so, especially if you’re aiming to get more cash.
2. The Time of the Year
This may come as a surprise, but it’s true. The time of the year does influence the scrap metal prices. This fact is related to the rise of demand, particularly in the warmer months. During this period, the construction industry typically sees an influx in work activity. Therefore, buildings and other structures will require more materials. You can say that the pricing of scrap metal in Perth increases in summer. That’s because the metal-hungry industries are looking to obtain metals as quickly as possible.
3. Quality and Quantity
Whilst it is possible to sell almost any metal you have, it will still be tested against quality standards. These standards allow the segregation of metals usable by foundries, mills, smelters, and others. It’s easy to tell that you will gain the most out of the transaction if you have high-quality metals in large volumes. Even better, if the metals you have are those that are in high demand, such as copper and iron, you can get more out of your scrap.
4. Mining Industry
There is a direct connection between metal prices to the mining industry. In general, using recycled metal lowers expenses and energy consumption compared to mining raw metal ores. If miners find lower quantities of certain metal ores, they are not only challenging to procure, but the process also becomes more expensive. That’s when industries turn to scrap metal. When metals required for products are unavailable, scrap metal surely becomes even more valuable. Of course, this means the seller reaps more attractive rewards.
5. Processing Costs
Scrap metal recycling involves more than two steps. Once gathered, metals will go through a series of processes, from separation to preparation, to get them ready for recycling. Scrap recyclers need to ensure that metal moves efficiently so as not to disrupt the supply chain. In many cases, processing metals for recycling and repurposing will require moving them from one scrap yard to another. That means energy and fuel costs increase. You also have to take into account the production and transportation costs that the recycler will have to pay for.
Each process will need a piece of equipment and some staff members to get the metal moving. The changes in these areas will undoubtedly affect scrap metal pricing in Perth.
6. Importation Costs
Recycling scrap metal is becoming more massive in several countries around the world, including Australia, New Zealand, and the United States. Like these countries, Australia imports metals from other countries. Some companies even seek the aid of international businesses for melting down and processing the metal. After that, the processed item will be shipped back to Australia, allowing the recycler to sell it to manufacturers.
This means that scrap metal costs are directly impacted by importation prices that the recycler pays to complete the whole procedure. If the importation price is high, the manufacturer will simply look for domestic metal sources. And this is where the demand increases for metals, which means domestic products will have higher prices. It’s a good indication to start selling your scrap metal.
7. Local Reasons
Scrap metal prices in Perth change locally because of various factors within a particular area. Fuel prices, for example, may increase in the city, which means metal costs will fluctuate accordingly.
Another cause of prices going up or down is due to the competition. Busy metro locations certainly have several scrap yards that compete with one another. Some, such as Collins Recycling, offer the best prices to entice more homeowners and businesses to sell their scrap. You have to do your research to locate the recycling business that will give you a good offer for the metals you wish to get rid of.
Finally, some parts of Australia do not export scrap metal. Instead, they complete the smelting process at refineries. As a result, a different pricing formula or structure will be used. If the refinery is in another location, chances are you will end up with a lower-priced offer.
To be fair, there is no clear and precise way to tell scrap metal prices. But by looking at the seven factors above, you will know how much you can expect to get paid for your scrap metal.
Are you interested in selling metals from items you no longer use? Reach out to the Collins Recycling team, and we will help you get rid of them from your property in no time.