Metal is a commodity just like any other. It’s made from raw materials that have to be transported to certain locations, where they are refined. Those materials are then shipped somewhere else to be manufactured into different products. There are often five or six steps to get to the finished product; there can even be more step in certain cases. Because of that, metal products can be very expensive. However, recycling metal saves a lot in terms of expenses. It reduces the amount of mining that is required; it also reduces shipping and refining needs. That makes scrap metal very valuable.
The Value of Scrap Metal
- Different metals are worth differing amounts of money depending on how rare and how useful they are.
- Copper, for example, is more expensive than iron because it is a great conductor and can be made into wiring.
- Steel is very useful, but it’s not uncommon; that means it is always in demand, but it’s not the most valuable material out there.
Some of the largest sources of scrap metal are cars. When your car is totalled, that means the cost of repairing the vehicle is higher than the appraised value of the vehicle. However, that is its value as a vehicle. As a raw material, a car is still very valuable. Cars are made of hundreds or thousands of kilograms of metal. A scrap yard will pay you good money for your vehicle. Many will even pick up the vehicle from your home.