Like many others in the scrap industry, you’re probably wondering, “When are scrap prices going up?”. If we knew the answer, we would have a private island in the middle of the Caribbean. While that’s not the answer you were probably looking for, we can tell you one thing: we know what we know TODAY. Below are some things for you to remember while watching the market for scrap prices.
The team at the iScrap App understands the frustration that comes with waiting for scrap prices to climb if they have been down, but the best we can do is continue to provide you with the information we know. For example, we know that scrap metal recycling will always be around, but we have to understand how the markets work to grasp the price fluctuations that occur.
What We Do Know About Scrap Prices
Market Prices :
We know that when sites like LME and Comex report a future drop in scrap prices for commodities like steel, copper, and gold, we expect prices to drop almost immediately. So when the markets seemingly climb again, we can expect prices to follow suit.
Industry Need:
This is a simple case of supply and demand. You can expect prices to drop if there is a small need for technology, manufacturing, and construction materials. But if there is a need for new construction, the need for supplies rises along with that, too.
International Trade:
When countries that import a lot of scrap metal, like China and India, begin to slow down their imports, you can almost be sure that prices will drop. This is similar to supply and demand. If they run low on commodity supplies, their need and the price they are willing to pay will increase.
When Scrap Prices Are Highest:
While choosing a good yard is paramount, the time of day (and the month) you choose to do business can be crucial in determining what prices you receive at the scale. It’s somewhat common knowledge that winter months are known to be slower than the hustle and movement of the warmer times of the year. However, you may not have known that you can typically increase your volume and cash in for higher prices at midweek and the end of most months.
Important To Cash In:
We know we have a lot of scrappers who disagree with this stance; however, we believe it is crucial to continue to cash in the scrap metal you collect at low scrap prices. We don’t prefer to gamble if the scrap markets drop again. However, if you have a suitable space to securely hold onto your scrap metal, you can also take that route and wait out the market.
What We Don’t Know About Scrap Prices
Beyond The Market:
Unfortunately, we haven’t yet figured out how to predict the future. So, beyond what the markets are forecasting a few months in advance, we don’t know what next year will bring. Perhaps the markets will recover 10-fold in the next eight months, or maybe it will continue its downward spiral. Until we know, we can only continue to watch the market and see where it’s going in the near future.
How Much They Will Climb:
If the markets begin to recover and scrap prices rise, it is difficult to state how much they will climb. As mentioned before about prices dropping, markets can only forecast so far in the future, so we don’t know the potential of the rise in scrap prices.
World Events:
We don’t know if any events or economic collapses will happen in the future. So, something similar to what Greece went through could throw the world’s economy off completely. While we can prepare for the unexpected, we don’t know what will happen and when.
What You Can Do
Follow The Market:
Continue to scrap or hold onto your materials as you wish, as scrap prices are fluctuating, and keep an eye out on the market. The iScrap App Team delivers weekly scrap price updates that can give you a better idea of what is happening and what’s coming soon.
Report Your Prices:
To add to the knowledge and information the iScrap App can provide, we also allow users like yourself to report the current scrap prices in your area. You can report the scrap prices you’ve received by locating your yard in our directory and selecting “Post Prices.” This will assist other scrappers in your area see the current prices and what to expect.
