How Do Scrap Metal Recycling Rates Vary by Region?


Quick Answer

Scrap metal recycling rates vary by region due to a number of causes including supply and demand, the cost of imported metals and gasoline costs, notes Mann Metals Corporation. Scrap metal recyclers in each area keep a close eye on these factors and vary their rates on a daily basis to ensure a profit.

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Full Answer

The demand for scrap metal can vary in part due to how expensive it is to purchase virgin metal. Most virgin metal is imported from China and Russia, which means there are import costs and added costs for fuel. When fuel costs go down or there is a favorable trade agreement in place the demand for recycled metal goes down. This is because customers who normally buy recycled metal may decide to purchase the cheaper virgin metals, states Mann Metal Corporation.

The value of the American dollar and local inflation can also affect recycling costs, notes Elder Demolition. As the dollar strengthens, it means that companies can purchase more virgin metal from other countries. As the American dollar weakens, companies may turn to domestic resources for a better value, such as recycled scrap metal. This same effect can also be seen in local regions where inflation may rise rapidly compared to other areas of the country.

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