Impact of Gas & Oil Prices on Scrap Metal Prices

Posted: November 17, 2020


One of the more infamous questions that we have been asked dozens of times is if we think that the metals market is going to go up or down soon. We jokingly answer that if we knew the future we would long be retired, but the question is still worth looking into.

How Are Oil Prices Affecting Scrap Prices?

Metal prices used to be mostly based on the classic demand vs. supply in many markets but has changed quite a bit over the last 15-20 years. As the stock market and different commodity markets have developed into another arm of Wall Street firms the metals market has been forever changed.

In years past, oil prices affected scrap prices, but there are many more factors that are affecting scrap metal prices just as much, and occasionally more.

Copper, Aluminum, Zinc, and Iron prices have become commodities that are traded almost like stocks have and that is part of the reason that the prices have changed so drastically and tend to make large up and downswings into different markets.

What Else Affects Scrap Prices?

The gas and oil markets have also become part of the trading curve and while supply vs. demand is always involved, it is not the whole reason for pricing to be affected. There are many reasons why scrap prices are going to constantly change. There are many factors that play into the market. Below are some of the reasons why scrap prices are moving:

  • Time of the Year
  • Wars going on
  • Demand vs. Supply
  • Stock Prices
  • Oil and Gas Supply
  • Global Development

While the price of gas seems to be the most common reason that people think that copper or other metals move, it is only a part of the equation. To stay updated on the current scrap prices and the market moves, be sure to sign up for our emails.

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