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Business: Four Factors Affecting Scrap Metal Prices By Buyers


Scrap metals are the leftovers or the waste products that come out of a manufacturing unit when a commodity is made.

Scrap metals can come from iron, steel, aluminum, bronze, and many other important metals. Many scrap metal buyers buy scrap metals in the market from big manufacturing units in bulk and sell it off to the small-scale manufacturing units.

This is actually a third-party business where the dealers come in between the manufacturers and the buyers, as it is not possible for the small-scale manufacturers to buy large amounts of scrap from the big manufacturers, as they do not sell in required quantities.

However, they can definitely buy from the dealers who have lots of stock and sell it to customers in small amounts, as well.

The Factors Affecting Scrap Metal Prices by Scrap Metal Buyers

There are about 4 factors that affect the price of scrap metals based on which the purchasers decide about the metal scrap, have a look at them below:

1) The type of scrap metal they are selling

As there are differences in the rates of things made up of aluminum and the cost of the things made up of steel. Therefore, there will naturally be difference in rate of scrap metals of different materials. The higher the value of metal, the higher the price of the scrap, as finally you have to melt it and make things to sell in the market. So, this is the first factor that affects the price of Scrap metals.

2) The quality of Scrap Metal that you are buying

When it comes to steel, there are two categories where the first one is normal steel scrap and the second one is stainless steel scrap. Both the metals belong to one category but then the types are different where one is normal steel and another one is stainless steel. The next example is of normal iron and pig iron where the difference is in the strength of iron.

So, it’s pretty obvious here that the scrap of the metal will also carry the same properties as the mother metal from where it has come. Thus, the cost that the Scrap metal buyers have to pay for the thing will be obviously more depending on the cost of the metal type that you are buying.

3) The dealer from whom you are buying the scrap metals

There are different types of dealers from where you can buy scrap metals. Some are stockists of different kinds of metals, some have a single type of metal in their stock, and the prices do differ a lot from one dealer to another dealer. As buyers for scrap metal, you need to be sensitive and make sure that you are buying the metals at the best possible rates available in the markets.

As there is a big possibility that you are buying a particular type of metal scrap at $10 a kg and then you come across a dealer who is selling even better quality of scrap metal at $8, then you are having a loss of $2 per kg. Therefore, it is advised always do a market research before you buy metal scrap.

4) The quantity of scrap metal that you are buying

Another thing that all the Scrap metal buyers should know is that the more scrap you buy the cheaper rates you get for it. If you are buying 100 tons of metal scrap, you will obviously pay a little less on every Kg from a particular dealer.

Hence, these were the important factors affecting the scrap metal prices by scrap metal buyers.

Author Bio: I am Amelie Lawrence, an experienced professional and informative guest blogger. I love to write blog on various topics, like: business, automotive, home improvement, business, health etc. For more details follow me on, Facebook or Twitter .


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