Are Your Scrap Metal Prices Up or Down?

The scrap metal market is dynamic, constantly shifting. Understanding these fluctuations is important for sellers. Prices for various metals change frequently, so staying informed about current market conditions is beneficial. This allows individuals and businesses to make informed decisions.

Current Market Overview

As of August 2025, the scrap metal market has seen a quiet summer, with steel scrap prices largely stable nationwide since June. Ferrous scrap, primarily iron and steel, continues to hold a dominant share in the overall scrap recycling market due to its widespread use in sectors like automotive and construction.

Non-ferrous metals, which include copper, aluminum, and nickel, have shown mixed trends. Copper prices experienced a significant spike in late July before dropping sharply in early August, though experts anticipate stability by early September. Aluminum has been a more positive area, with prices increasing over the past month, particularly for certain alloys and extrusion scrap. Nickel prices have remained relatively steady, while stainless steel scrap demand has been soft, though slower scrap flows have prevented significant price declines.

Globally, steel scrap is currently trading between $350 and $550 per ton, with American sellers typically receiving 10 to 30 cents per pound. Clean copper material often commands rates exceeding $3 per pound, though recent volatility saw prices range from $4.00 to $5.91 per pound. Aluminum generally fetches between 25 and 50 cents per pound, depending on its quality and specific type.

Factors Influencing Prices

The value of scrap metal is significantly influenced by global economic conditions. Periods of strong economic growth, marked by increased GDP and industrial production, typically lead to higher demand for raw materials, including recycled metals. Conversely, economic downturns or recessions often result in reduced industrial output and a corresponding decrease in scrap metal values.

Supply and demand dynamics are fundamental drivers in the scrap metal market. When there is high industrial demand for materials and limited availability of scrap, prices tend to rise. Conversely, an oversupply of scrap metal combined with low demand will typically lead to price decreases. This balance is constantly shifting based on various global and regional factors.

Energy prices and transportation costs also play a substantial role in determining scrap metal values. Higher fuel and energy expenses increase the cost of processing scrap metal at recycling facilities and transporting it to end-users, such as mills. These increased operational costs are often passed along, influencing the final price offered for scrap materials.

International trade policies and tariffs can dramatically alter scrap metal markets. Government regulations on imports and exports can affect the flow of materials, influencing domestic supply and demand. For instance, tariffs on imported steel can support local demand for ferrous scrap within the United States by making domestic steel more competitive.

The prices of base metals on commodity markets directly impact scrap metal values. Since scrap metals are recycled into new products, their value is inherently linked to the market prices of virgin metals like copper, aluminum, and steel. Geopolitical events, such as natural disasters or political unrest, can also create significant market disruptions, affecting both supply chains and demand.

How Local Prices are Determined

When selling scrap metal at a local yard, the specific price offered depends on several immediate factors.

The type and grade of metal are paramount; non-ferrous metals like copper and aluminum generally fetch higher prices than ferrous metals such as iron and steel. Different grades exist within each metal category, with cleaner, higher-grade materials commanding a premium.

The purity and contamination level of the scrap material significantly impact its value. Metals free from contaminants like plastic or wood require less processing, making them more desirable. Contaminated scrap receives a lower price due to additional sorting and cleaning.

The quantity of scrap metal sold can also influence the price per pound or ton. While scrap yards accept small amounts, larger volumes may qualify for a better rate due to economies of scale. Accumulating a sizable amount before selling can be advantageous.

Local market competition among scrap yards and proximity to major processing mills or transportation hubs affect pricing. Yards in urban areas or near key transport links may offer more competitive prices due to lower overhead. Rural locations might have higher transportation costs, which can reduce the price offered.

Finally, the scrap yard’s operational costs, including sorting, cleaning, baling, and transportation, are factored into the price. While yards aim to maintain consistent profit margins, these internal costs and external market fluctuations dictate the final rate.