Scrap Metal prices are based on the fluctuating price of both ferrous and non-ferrous metals. Scrap metal prices are continually changing based on the world’s supply and demand for scrap metal. Ferrous scrap metal prices are traditionally lower than the scrap metal prices associated with non-ferrous.
Asia, and in particular, China, is having an ever increasing effect on scrap metal prices as their economy grows. Scrap metal prices, particularly for ferrous metals like steel, have risen in the last few years to unprecedented levels as the demand for scrap metal has risen dramatically as China produces primary steel to feed its growing economy, and supply the world demand. Scrap metal prices will inevitably fall though as the Chinese economy produces too much steel that it will have to sell cheaply on foreign markets and demand for scrap steel lessens.
Scrap metal prices for non-ferrous metals particularly in the last few years have seen a continuing upward rise. Indeed, scrap metal prices for aluminium, copper and, in particular, for nickel have been at record levels. There is expectation that scrap metal prices for non-ferrous metals will continue to rise, or be at a high pricing level, for the foreseeable future.
The rapid fluctuations and elevated prices that affect global scrap metal prices tend not to affect processors and collectors at the start of the supply chain. Scrap metal prices tend to be more steady or less at the lower end.
