As the scrap metal industry continues to grow, the process of selling, buying and recycling unwanted materials now involves more people than ever. From individual domestic customers taking advantage of an opportunity for profit through to scrap metal merchants like ourselves, our industry attracts people from all corners of society. In fact, we continue to receive record numbers of customers to our depot in Tottenham.
Whether visiting this depot or taking advantage of our free collection service, our customers provide us with a wide range of non-ferrous metals. Be it from house renovations, construction work, warehouse clearances or factory demolitions, our scrap metal merchants handle it all. Regardless of the source, however, our customers often have one recurring question:
WHY DO SCRAP METAL RATES VARY SO MUCH?
In short, there’s no one answer to this question. As with traders in any commodity, scrap metal merchants face numerous daily factors influencing rates. Perhaps the primary consideration to affect our customers in the Tottenham area is the market price for virgin metals. The price for freshly mined metal and the scrap equivalent fluctuate together. For example, if the rate for virgin tin increases, the price of scrap tin follows accordingly.
Production costs must also be considered. Not only is it more cost-effective to recycle scrap metal when compared with mining for virgin material, it’s also a more efficient use of energy. In turn, this makes recycled metal more desirable and, subsequently, increases the demand. As a result, based on orders from industries and their supply lines, the rates for scrap metal vary. Quite simply, the higher the demand and the less material available, the more attractive the rate our customers in Tottenham and the surrounding areas receive.
The experienced sole traders, independent businesses and established organisations we regularly deal with understand and work around these fluctuations. They patiently bide their time until rates reach the most lucrative levels, selling to our scrap metal merchants only when the time is right for them.
The prices for rare metals vary more than most. Our customers in Tottenham and the surrounding areas sometimes find that increased transportation costs, and even global politics, increase the demand for certain metals, particularly those sourced from overseas. If a foreign supplier raises export costs, industries shift their focus to domestic sources for the materials they require. During these times, scrap metal merchants see a rise in demand for the metal at hand, so those bringing that particular material to our Tottenham depot receive a higher rate.
The price of fuel also influences scrap metal rates. Whether recycled or virgin, producing metal involves a significant amount of energy. Should a foundry pay more for electricity, gas or coal to produce their goods, the cost of those products rises too. Therefore, scrap metal merchants like ourselves pay more for deliveries when fuel prices rise.
However the market stands, Mixed Metals always provides an honest, fair service. We pay the precise market rate on the day of collection or delivery, and we never underbuy.