How Are Scrap Metal Prices Determined?

If you’re a tradesperson, you’ll know that scrap metal isn’t always waste. Metal that looks like it may have run its course can actually offer an attractive profit, if sold to the right scrap yard. 

But how are scrap metal prices determined? How do you tell which factors affect pricing in the scrap metal recycling industry? In this blog, we’ll break down the key factors that affect scrap metal prices and share practical tips to help you get the best value from your leftover materials.

Which factors affect pricing in the scrap metal recycling industry?

Several factors affect pricing in the scrap metal recycling industry, with supply and demand being a key influence. Here are the main factors to consider:

• Supply & demand: Naturally, if the demand for a certain metal rises and its available supply is limited, the price increases. On the other hand, if there is an oversupply of scrap metal or demand falls, the price decreases.
• Type of metal: No two metals are the same, which means prices can vary significantly. This often depends on the rarity, demand and processing requirements for the metal in question, as well as whether it is ferrous or non-ferrous.
• Grade of metal: All metals are graded using a standardised system which assigns them a number, letter or a combination of both depending on their chemical composition and mechanical properties (e.g. strength, hardness, corrosion resistance).
• Quantity of metal: In the UK, scrap metal is generally priced per unit (e.g. per kilogram) so the more you have, the higher price it will fetch at your local scrap yard.
• Ferrous vs non-ferrous metals: Non-ferrous metals are generally more valuable than ferrous metals due to their rarity, superior corrosion resistance and versatile properties.

What are the most valuable scrap metals for tradespeople?

The most valuable scrap metals for tradespeople depend on which type they use for their applications. Here’s our top recommendations:

• Copper: Plumbers, electricians, builders and roofers will see the most profit by trading their scrap copper with a reputable scrap metal dealer. Used for a wide range of trade applications, copper is highly conductive and corrosion resistant, hiking its price up significantly.
• Aluminium: Builders and mechanics will get the most bang for their buck by selling their scrap aluminium. Lightweight, malleable and unable to corrode, high-grade aluminium is worth a pretty penny.
• Brass: Whether it’s taps, pipes or valves, plumbers are sitting on some of the best-paying scrap when it comes to brass. With unique properties, such as anti-microbial benefits, brass may be more valuable than you think.
• Lead: A ductile metal with a low melting point (making it easier and cheaper to recycle), lead can mean big pay-outs for builders and roofers.

Kas Metal Trading offers straightforward, hassle-free scrap metal recycling services for tradespeople across the North West of England. 

How can I maximise the value of my scrap metal?

To maximise the value of your scrap metal, it’s important to save up as much as you can, keep it clean and separate it from contaminated metals or types that may not be as valuable (i.e. ferrous scrap). Here’s a more detailed breakdown:

• Sort & categorise your scrap metal: Separating the more valuable scrap from its less valuable counterparts will make the scrap metal recycling process quicker, easier, and much more profitable. Top tip: Make sure you put the non-ferrous metals in the ‘valuable’ pile!
• Clean your scrap metal: Scrap metal buyers will always pay more for clean, pure metals as opposed to mixed, contaminated loads that have come straight from site and onto the scrap yard.
• Keep an eye on supply & demand: You can research the current global commodity scrap metal prices on the London Metal Exchange (LME) website before taking a visit to your local scrap yard.
• Save up your scrap metal: If your on-site facilities are big and secure enough to store your metal before you sell it, we would highly recommend you do this until you either run out of room or won’t be collecting any more scrap. Naturally, the more scrap you have, the higher the price you’ll receive.

How do Kas Metal Trading determine their scrap metal prices?

All of Kas Metal Trading’s scrap metal prices are based on the London Metal Exchange, or LME, (the world centre for industrial metal hedging, trading and pricing).

The LME creates a stronger, more controlled scrap metal market by ensuring there is always a buyer and a seller, a standardised price and the choice to transfer or take on risk – 24/7.

Responding to the nature and timing of bilaterally negotiated metal trades, the LME pricing strategy is informed by benchmark index prices and regional premium levels set by Price Reporting Agencies (PRAs). These are often influenced by geopolitics and freight rates.

Read Kas Metal Trading’s in-depth guide to the London Metal Exchange here.

How are Scrap Metal Prices Determined: FAQs

Which scrap metals are worth the most money?

The most valuable scrap metals are generally considered to be:

• Copper: One of the most valuable scrap metals, copper is highly conductive, making it highly sought-after for electrical and plumbing applications.
• Lead: One of the more dense/heavy types of scrap metal, lead offers great value due to its unique properties, e.g. malleability, corrosion resistance, low melting point, etc.
• Aluminium: Extremely lightweight yet highly durable, aluminium is traditionally valuable due to the extreme difficulty and expense of extracting it from its ores. 
• Steel: Pure and clean, steel is incredibly versatile, with its strong iron and carbon alloy composition. Despite its low cost and relatively simple production process, steel is very recyclable making it highly sought-after in the construction industry.
• Brass: An alloy of copper and zinc, brass can be very valuable (especially copper-rich brass). With a high workability for several applications, brass is widely used for many types of manufacturing processes.

Browse the top 5 most valuable non-ferrous metals and the top 4 most valuable ferrous metals via our scrap metal recycling blog.

How can I check today’s scrap metal prices near me?

You can research the current global commodity scrap metal prices on the London Metal Exchange (LME) website before taking a visit to your local scrap yard.

Where can I sell scrap metal for the best price in the UK?

Kas Metal Trading! At our local scrap metal yard, we offer:

• Competitive rates based on the London Metal Exchange: Our scrap metal prices are always based on the London Metal Exchange, meaning they change in line with supply and demand at the point of trading.
• Same-day payments before 4pm: If you bring your scrap metal to us before 4pm, we’ll pay you the same day! If not, we’ll simply pay you the following day.
• A wide range of prompt & flexible payment options: Depending on what suits you best, we can pay you by cheque, bank transfer or our very own pre-paid card method.