Question

Why are scrap metal prices dropping so much?

I have some scrap tin and a few appliances in my yard that I want to haul to the scrap yard but today when I called the scrap yard the scrap metal prices have dropped from $100.00 per ton down to $50.00 per ton.

At that price I can barely pay for fuel in my truck to haul the scrap metal in so I guess the scrap metal and appliances will just have to sit in my backyard until a price increase.

What is causing the scrap metal prices to drop so much?

Answer 1

The most common cause of scrap metal prices dropping is supply and demand.

When steel mills have enough supply of the scrap then the scrap metal prices will go down especially if there's not much demand for new steel or new steel products.

Same goes for other types of scrap metals such as copper, brass, aluminum, stainless steel and any other scrap.

Another thing that is affecting scrap metal prices is the metal tariffs that Donald Trump has put in place.

The Tariffs are another cause of the scrap metal dropping.

Scrap metal however does drop and then go back up but when it will there's no telling.

Scrap metal prices could go back up in price next year or it could be 10 years from now before the scrap metal prices rise up again.