What influences brass scrap metal prices?


Quick Answer

Supply and demand significantly influence the price of brass and other scrap metals. If demand for brass increases and the supply doesn't grow as quickly, its value increases. The value of the U.S. dollar compared to other currencies also affects its value.

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Full Answer

Due to the size of the United States, prices in many industries vary considerably. Since brass has a hefty weight, its shipping costs remain high. Consequently, most sellers try to sell it as close to the business as possible. As a result, sellers may sell at a lower price if doing so reduces shipping costs enough.

Prices also vary within regions, so regional pricing estimates serve only as a rough guide. Areas near brass manufacturing plants or by ports, where brass can be shipped economically, might offer lower prices than more isolated regions.

Brass is an international commodity, the international market determines its value. As a result, the value of the U.S. dollar affects how much it costs to purchase brass within the United States. When the value of the dollar rises relative to other currencies, the price of scrap brass drops. When the dollar weakens, the value of brass increases since companies can sell it for more in areas with currencies that perform better.

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