When it comes to buying and selling scrap metal, it can be a complicated process. Unlike other products, the price of scrap metal changes on a daily basis, which can be frustrating for some customers. However, there is a good reason for this change, and if you know how it works, you can make the fluctuating price work for you. That’s why Metalico Rochester in Rochester, New York wants to make sure that you’re informed on scrap metal prices.

Scrap metal pricing works like the stock market. Each day, Metalico Rochester gets the published prices and shares those prices with their customers. That’s why they’re unable to give standard pricing for metals over the phone or on their website. Instead, you can call in daily to find out the price of metal. Although this process can seem frustrating, it’s how the market works.

Metal prices change with supply and demand, plus the cost of production. For instance, the price of copper rises sharply during a housing boom, because builders demand record amounts of copper pipe and wiring to build millions of homes. When the housing market crashes, the price of copper decreases. Other rare and imported metals change in price due to politics or importation costs. If the metal you’re looking to buy or sell is imported from China and they just raised their export taxes, the metal will be more expensive here in the US.

Of course, the greatest influence on price is the price of fuel. Almost all metals require high heat to make basic industrial products such as sheet metal, wire, rods, and bars. Most foundries use natural gas, coal, or electricity to produce that heat. When the price of fuel rises or falls, so does the price of metal.

Metalico Rochester wants to make sure that you always feel like you get the best deal from your metal recycling or scrap metal pick up. Now that you understand how and why the prices are the way they are, you can plan your purchases and sales around the market. To learn more, call (585) 436-0713 today or visit them online.