Factors that affect the rates for recycled aluminum include the available supply in the market, the cost of harvesting the raw materials and the price of labor to refine the scrap metal for reuse. Other factors include the economic status of the countries in which the mining takes place as well as the predictions on official futures charts such as COMEX and CME markets.Continue Reading
The price paid to customers for recycling aluminum depends greatly on the supply and demand of the materials both domestically and internationally. However, unlike metals such as copper, aluminum does not carry as many variables and thus has a typically more stable price point. Numerous companies and organizations across the world use the metal in a wide range of products, making the demand consistent. Similarly, the proliferation of aluminum products and the number of countries that support mining for the necessary ores makes keep the supply at a constant level. However, fluctuations in these factors do occur and can increase or decrease prices accordingly.
The economic status of these countries plays a significant role in determining prices, as a country can increase the cost of exporting materials or decrease the pay for workers. These factors influence the rate of aluminum in futures markets, which in turn affect the cost of companies purchasing aluminum for use in manufacturing. As this price fluctuates, the rate of payment for recycling changes in kind.Learn more about Currency & Conversions