Even though a drop in the price of scrap metal can be frustrating, it is something that we cannot control and, therefore, have to live with. When the market appears to be dropping or is simply not performing well, there are some strategies that we can employ to cope with the strain. We have outlined some of these in the list below for your convenience.
- Stay Informed
One of the best things you can do is to stay informed about the latest market news and current prices. There are a number of ways that you can achieve this, from downloading the iScrap App to subscribing to e-newsletters. It can also be an idea to find out information that is relevant to your particular region or city.
- Be Picky with Materials
This could be the perfect time to reassess the metal that you collect and determine what is of greater value to you. When the market is strong, you should focus on getting as much ferrous weight as possible; when the market is dropping, however, you should focus more on collecting valuable metals (such as copper, brass and aluminium).
- Be Patient
Whilst we would all like the market to continuously rise, it is important to remember that occurrences in the economy can affect the price of scrap metal. We just have to be patient and wait the slump out. Whilst no one likes waiting around for things to get better, you should see this as the perfect time to work on other projects.
- Take Apart with Time
Why not take a look at what items you have already collected and start to take them apart? You will find that there are advantages to taking apart some items, as it can allow you to separate the various metals that they may be comprised of. You will find that dealers are more likely to pay better when most of their job has been done for them.
- Start Hoarding
This is actually a common strategy when the market isn’t good, as this will ensure that you have plenty of stock when the prices improve. Whilst this is alright in theory, it is important to remember that you could be putting yourself at risk if you don’t have adequate security. What would happen if someone stole your collection?
- Sell Everything Now
The final strategy is to do the complete opposite of hoarding and sell all of your scrap now, whilst the market is still at consistent levels. If you’ve heard rumours that the price is only going to go down, it could be in your best interests to just sell now. When the prices start to go up again, you should have another pretty decent collection to sell.
Whilst seeing the price of scrap metal drop is not a fun experience, it is something that everyone in the industry has to deal with every now and then. By keeping these strategies in mind, you should be able to take a step back from the issue and get a sense of what the best solution for you is. Don’t just limit yourself to one strategy – two or even three may work for you.