Factors That Determine the Price of Copper
It can be difficult to pin down the numerous factors which have the potential to influence the price of copper. The market can go up or down while taking unexpected turns along the way. At Federal Metals Inc., a copper recycling facility in Calgary, we've narrowed down the forces which can affect the price of copper to the five main factors which have the largest effect:
Like any other commodity, the price of copper is largely influenced by the current demand for it. Copper is one of the most prolific metals in the world, used extensively in industries such as construction, transportation, and tech. When these and other industries are strong, copper demand is high. During times of industrial downturn, however, the need for copper will decrease and the price will fall accordingly.
The flip side of demand is always supply, and this holds true for copper recycling as well. If demand for copper is relatively low but virgin copper supplies are abundant and Calgary copper recycling facilities have stockpiled a lot of copper, then prices will be low. If demand is high and supply isn't overabundant, then prices will be high, as more buyers will need what fewer sellers have.
- Domestic and International Markets
While copper supply and demand is influenced by local markets, it also rises and falls in accordance with international markets. On a domestic scale, copper prices can differ across the country if, for example, one region's construction industry more active than another's. However, copper prices as a whole across the globe can rise and fall according to the demand of entire nations.
Overseas development is a hugely important factor influencing copper prices all around the world. When countries such as India and China undergo massive redevelopment, as they did in the mid-2000s, they tend to import large amounts of scrap copper and cause prices to rise.
- Time of Year
The seasons and the time of year can have an effect on the price of copper as well. Colder temperatures and rainy or snowy weather tend to drive the price lower as industry demand falls, particularly in the construction industry. As weather conditions grow warmer and more optimal for industry activity, copper prices tend to rise along with them.
- Your Scrap Yard
Once all of the other factors which affect the price of copper are taken into account, it is your scrap yard that sets its own scrap metal prices in Calgary. A good scrap yard will give you a fair price according to the current market.
Scrap Copper in Calgary
As a family-owned local business, Federal Metals Inc. strives to provide fair scrap copper prices in Calgary for everyone who visits our facility. We keep an eye on the market to make sure that you're getting your money's worth.
If you've got scrap copper to recycle, then we invite you to visit or contact Federal Metals Inc. and see the dedication and expertise of our Calgary scrap metal recyclers and suppliers for yourself.