So, do you think your local scrap yard has an “in” on where the market is headed? Well, that is the wrong answer because many scrap yards do not know what is going on the same day, let alone in the future. Scrap prices follow the commodities markets, and as we have talked about before, it is hard to gauge what will happen with gas, oil, and other prices in the future.
Scrap Yards Won’t Tell You Where The Market Is Going
One thing that scrap yards will not try to tell you is what they think the market and metal prices will do. With so much uncertainty, it is very difficult for yards to guess what is going on, let alone what will happen with future market prices.
The markets are not only unpredictable, but they are also incredibly tough to read into the future. At one point in the mid-2000s, many said that oil would never dip below $100 per barrel. Then, when it got up to $140 per barrel and gas prices were at all-time highs, many said that this was the new normal. Then, going into 2015, oil prices dipped below $40…in just 7-8 short years in between.
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Something Your Scrap Yard Should Do
If something as “stable” as oil goes all over the place, why wouldn’t metals like copper, brass, steel, and more do the same? One thing that a good scrap yard will try to do is to explain how the markets work and give their best guess on where they should be in the near future, but much further than that, it is tough to predict and provide an educated opinion on.
Organizations like ISRI (Institute of Scrap & Recycling Industries) represent the recycling industry and have excellent knowledge, but they often can only give historical statistics and not future advice. While their information is extensive and in-depth, it is, like anything, just another piece of the puzzle to help put the bigger picture into perspective.
What Can You Do?
Because scrap yards keep the scrap price market somewhat hush from scrappers, we suggest using the iScrap App to report your scrap prices online and on the app to help you see prices in the area. Not only will it help with other scrappers in the area looking for prices, but it will allow you to go back and keep track of what prices you received last time at your scrap yard.
Suggested Reading: How Reported Scrap Metal Prices Can Help Your Earnings
