Top Factors Influencing Scrap Metal Worth

If you are looking for a different stream of income besides your day job, you should think about scrapping metal. Although collecting scrap metal and exchanging it for cash at a local scrap yard seems straightforward, it is not. You need to know the value of your scrap metal load, and several factors come into play. This article highlights key factors that influence scrap metal worth and ways to use the information to your advantage.

Price of Virgin Metals

One of the main reasons companies are increasingly turning to metal recycling is the high cost of mining and processing new and virgin metal. The implications of energy cost make reliance on recycled metal a better strategy. However, it does not mean that mining has stopped or the use of virgin metal has drastically dropped. Companies are still using new metal, and its price does influence the value of scrap metal. For instance, when the price of virgin or new metal rises due to factors such as increased energy costs, companies turn to scrap metal. During such times, scrap metal becomes much more valuable. However, if the price of virgin metal falls and industries can afford it, scrap metal becomes less essential and its worth drops.

Quality of Scrap Metal

The quality of scrap metal you take to a scrap yard determines its worth. For instance, corroded scrap metals are worth less than metal without signs of corrosion. Similarly, scrap metals covered with insulation, paint, or any other material apart from metal attracts a lower price than stripped scrap metal. Certain types of metals also attract a higher price due to their unique applications. For instance, scrap metal yards pay more for high-performance scrap metal alloys than standard alloys. Therefore, you can strategically decide to focus your efforts on scrapping high-value scrap metal because the energy and time spent are worth it.

Scrap Yard Location 

Contrary to popular belief, scrap yards do not clean metals on site. It is done at a different milling station, and a scrap yard is just the collection point. Therefore, if a scrap yard is located far away from a metal recycling plant, the cost of transporting dirty metal to a processing mill is considered. Even if you bring a truckload of dirty scrap metal, its worth drastically falls with increased distance from a processing plant. Thus, it is advisable to sell your scrap metal to a yard that is near a local scrap metal processing mill since the chances of getting paid more are better.

To learn more about getting cash for copper and other metals, talk to a recycling company.