If you are new to scrapping aluminum or have been in the business for years, one of the first lessons learned is how the price of metals fluctuates. When working with local scrap yards, the buyer will often consult the current market price for aluminum, but the current market is just one factor a buyer might consider during a potential sale.
Another factor that impacts the price of scrap aluminum is the quality of the scrap metal. Specifically, if the metal is covered in residue, then you may receive a lower price. Other factors include the amount of metal sold, the demand for aluminum compared to the buyer's existing supply, and the time of year.
Interestingly, the need for recycled metals is higher during warmer months because construction and automobile industries are busier during the spring and summer.
Do scrap aluminum prices depend on location?
Where you live can significantly impact the value of aluminum scrap metal, partly because of where other, larger shops can process scrap metal.
Usually, the buyer will not process metals in the shop where the original sale is made but rather will ship the metal to a more prominent location to be treated. The distance between the buyer's shop and the processing location can impact the value of your scrap aluminum.
How does location affect scrap aluminum prices?
- Local oil or fuel prices - Logistical barriers impact what a local buyer will offer scrap aluminum, like how much it might cost the buyer oil or fuel expenses. Again, the distance between the sale location and the processing area impacts prices.
- Local competition - Sellers should also consider how local competition impacts the value of aluminum scrap metal. In more metropolitan areas, competition is higher because more buyers are closer to processing units. Finding a better price in a city is common for those who often sell scrap aluminum.
- Location of where scrap aluminum will be processed - Furthermore, it is more common for buyers to have processing divisions in the same shop in larger cities, so if you remove the need to transport scrap metal, then the cost derived by the seller is higher. When a refinery is attached to the buyer's storefront, the likelihood of a higher profit is increased.
- Local costs/ease of doing business - While sellers might consider driving into a larger city to make a more profitable sale, the ease of doing business locally might outweigh any profit margins. Compare the amount of time and money needed to regularly drive to a more prominent buyer against a slightly lower profit at a local buyer's store - the results could be that the local business is ultimately more profitable for the seller in the long run.
- Local laws - Another important consideration is how state laws impact aluminum sale profits. Indeed, some states have laws requiring minimum payouts on scrap aluminum, called bottle bills. A "bottle bill" law aims to promote recycling by requiring buyers to pay a minimum refundable deposit on beverage containers, including those made of aluminum. Currently, ten states have these laws, including California, Connecticut, Hawaii, Iowa, Maine, Massachusetts, Michigan, New York, Oregon, and Vermont.
How to Find Best Scrap Aluminum Prices Near Me?
Finding scrap metal prices isn’t the same as finding a restaurant on Google. Instead of searching “scrap aluminum prices near me,” reach out to local scrap yards for fast and accurate prices. Most local scrap buyers will have a telephone number, often listed online or in a phone book, so calling to inquire about the price of aluminum is a good start. You can also ask if there have been significant price shifts over the past few weeks to determine whether there is an upwards or downwards trend.
If you cannot reach the local buyer via the telephone, shops will often have daily prices posted at the location, so you can visit and check out the prices before you unload. Similarly, some local shops have fully developed websites and will list and update daily prices online.
When entering into a negotiation about the price of aluminum scrap metal, it is an excellent practice to be as informed as possible about the daily expenses in the region and if there is an upward trend in the market. Knowing facts like this can help you persuade a buyer to purchase your scrap aluminum for top dollar.
Best Scrap Aluminum Prices In the United States
Depending on specific factors, local scrap aluminum prices can fluctuate based on multiple variables like where you are selling and the demand for aluminum scrap metal in your area. Scrap aluminum prices in New York will vary greatly from scrap aluminum prices in Utah.
Commonly, buyers in rural areas or smaller towns will need to purchase scrap aluminum for a lower price than those buyers in larger cities because local buyers must transport metals to processing facilities. For the seller, comparing the benefits of selling locally to the profits of selling to a more significant business is vital to weigh before making a final selling decision.
Finally, be sure to consult the local and state laws in your state to ensure that you are receiving as much profit from your aluminum scrap metal as possible.