One would think that if the cost of metal goes up due to tariffs, then the price of recycling metal would too. However, that is not necessarily true.
Here is why. . . .
A main reason recycling rates could increase is if US processor seek out scrap metal for processing. But simultaneously, if international tariffs are created for metals like electronics or steel are applied, then the prices could go down too because it’s more costly to move the metals internationally.
Some other reasons in recycling rates:
- Supply of scrap metal: if the supply of metal being recycled is high, the price given for the metal decreases.
- Location of scrap buyers: scrap buyers will consider the transportation cost of taking the scrap to a recycler. This affects the prices given for the recycling of the metal.
- Quality of scrap metal
Why it is a good idea to recycle anyway?
- Scrap metal is used in almost all areas of everyday living.
- Metal can be reused repeatedly without losing its value.
- Environment benefits are that less energy is consumed and less pollution is released into the environment when reusing scrap.
Photo by Randy Laybourne on Unsplash