Scrap metal is an essential component of the modern economy, serving as a crucial raw material for the production of new goods – which is why the pricing of steel is always closely watched. The cost of steel and other metals can be a key indicator of the ups and downs of the economy.

However, the demand for scrap metal over raw steel has been on the rise in recent years, as more and more industries realise the economic and environmental benefits of recycling. Understanding the market trends and pricing of scrap metal can be a tricky task however, as it’s subject to various factors that can impact its value. 

At Elite Recyclers, we work with scrap metal and trade it for cash every day, so we understand how scrap prices work. From key market trends to government policies and regulations, a lot contributes to scrap prices.

Like many things in the world, supply and demand plays a huge role in the price of scrap metal. Of course, if there’s enough scrap to go around, you may not be receiving as much cash for your scrap metal if you drop it off at a waste management facility. If you want to get the best dollar for your scrap, track scrap prices over time and keep an eye on current trends.

We’ve seen that large events such as the global pandemic can affect the price of everything from toilet paper to raw materials, and this includes scrap prices as well. Closer to home, natural disasters like floods and bushfires can often disrupt supply lines, leading to a temporary shortage of scrap metal or inundated scrap yards. This can drive up the price of scrap metal as buyers compete for limited supplies.

Internationally, political unrest or trade wars can lead to import and export restrictions, causing fluctuations in the supply and demand of scrap metal. This may happen when countries implement tariffs or sanctions on imports and exports, making it more expensive to trade a commodity internationally. This can impact the cost of scrap metal in domestic markets as businesses look for alternative sources of supply.

Local and even national government policies can play a role in scrap prices. Things such as environmental regulations may require businesses to properly manage and dispose of their waste. Such regulations often incentivise the recycling of scrap metal, leading to an increase in demand. This can drive up the price of scrap metal as buyers compete for limited supplies.

Government infrastructure investments can also increase the requirements of scrap metal transportation and processing. This can reduce the cost of scrap metal production and ultimately lead to lower prices.

Better quality scrap metal will of course fetch a better price, and businesses that supply scrap metal can ask for a higher price if they source only quality scrap metal. Understanding and taking into account quality control can help establish scrap prices.

At Elite Recyclers, we’re passionate about making sure any metal that can be reused, is reused. Recycling scrap metal not only conserves natural resources but also reduces greenhouse gas emissions and energy consumption. Understanding the environmental benefits of recycling scrap metal can help businesses make a case for sustainability and attract eco-conscious customers.

Looking for a good price for scrap metal in Loganholme or the greater Brisbane area? Elite Recyclers is ready to work with you. Get in touch today and see how we can help recycle your unwanted steel and more.