Other countries like China, India, Dubai and Saudi Arabia become big importers of non ferrous materials. When there are “building booms” in these countries it causes a higher demand for material, in turn driving the scrap metal prices up.
Understand supply and demand:
The law of demands position is that when the price of a commodity rises, the demand for that commodity will fall. The law of supplies position is that when prices of a good or service rise, manufacturers are more willing to supply that product, so the price of that particular good or service and its supply in the market are positively effected.
The rate of growth in the economy has a tremendous influence on the scrap market. With exponential growth come high cost and demand and short supply. However, when the economy is slow there is an abundance of material causing prices to drop again.
The value of the US dollar has a significant impact on scrap metal trading. The rise and fall of the US dollar will drive supply and demand. If supply and demand are in perfect balance (assuming no other factors affect the price), commodities prices would go nowhere.
Unfortunately, natural disasters also play an important role in commodity trading in our country and others. When there is a need for rebuilding it puts metal in short supply and the scrap prices on the quick rise.
At Universal Recycling Group we know that keeping an eye on Scrap Metal Prices can be tedious and overwhelming at times and that is why we are here to answer your questions and share our knowledge of the business. Please feel free to contact us for current daily prices or if you have any questions that we can answer for you. Happy Scrapping!
Universal Recycling Group
23 Double Trouble Road
Bayville, NJ 08721