The going rate for scrap aluminum fluctuates much like the stock market. Its price is determined by supply and demand. The greater the demand for aluminum, the more scrappers can expect to be paid for collecting and recycling the metal.
The demand for aluminum has risen in recent years, and that trend looks to continue. A recent report from the International Aluminum Institute projected the global aluminum demand will increase by almost 40% by 2030 and that the aluminum sector will need to produce additional aluminum to meet demand growth in all industrial sectors.
Sgt. Scrap is a premier scrap metal dealer that specializes in recycling aluminum and other metals for customers in New Jersey, as well as Delaware, southeast Pennsylvania, and parts of New York. Here, we explore this recent trend and the high demand for aluminum scrap.
Aftermath of the Global Pandemic
The global COVID-19 pandemic affected industries of all kinds, including the aluminum industry. The global shutdown led to aluminum shortages that we still feel today. Previously, individuals would go out to eat at local establishments and eateries to satisfy their cravings. When the lockdown occurred and many of those establishments were forced to close, consumers were prompted to enjoy their meals differently.
This led to the takeout and packaged food craze. Restaurants required more aluminum to package their food for safe consumption. Also, many businesses saw an opportunity to capitalize on the lockdown and began offering prepared meals to be made at home.
This sudden growth in demand for home cooking left producers scrambling for packaging materials, and aluminum is one of the most common. This development contributes to shortages and affects the going rate for scrap aluminum.
Supply Chain and Shipping Container Debacle
While the United States does produce its own aluminum, it also has it imported from other countries. Russia provides roughly 6% of the aluminum the U.S. uses in smelters. Disruption of the supply chain in Russia has contributed to the heightened aluminum scrap metal demand we see today.
Another factor is that shipping containers are in short supply, and major ports are backed up. These delays make getting aluminum where it needs to go exceedingly difficult.
Fight Over Aluminum
The U.S. is not the only country feeling the ripple effects of the global aluminum shortage. While companies in the U.S. are struggling to receive aluminum, businesses across the world are, as well. With an insufficient amount of aluminum being produced to satisfy every business from every industry looking for the metal, a shortage has ensued.
Of those industries fighting over aluminum, the automaker industry is one of the most prominent. Automobiles have been manufactured using steel for almost a century due to the strength and reliability of the metal. As automakers seek to curtail weight and boost fuel economy, many are opting for aluminum because it’s lighter and considered better for the environment. The aerospace industry is also using more aluminum for the same reasons.
Aluminum Scrap Rates at Sgt. Scrap
When it comes to scrapping aluminum, or any metal, individuals want the fairest and most competitive price possible. As a premier scrap metal dealer in New Jersey, Sgt. Scrap prides itself on offering the best prices for all the metals we buy to scrappers throughout the state and other states, including Pennsylvania, Delaware, and New York. We happily accept and responsibly recycle the following types of aluminum:
- Cast aluminum
- Extrusion clean 6063
- Extrusion painted
- 6061 sheet/plate/clip solids
- Aluminum 5052
- Cans UBC
- Painted siding
- Litho plate
- MLC clip clean
- MLC clip painted
- Road signs (reflective tape)
- Thermal extrusion
Get the Best Aluminum Prices at Sgt. Scrap
To better accommodate our customers, we are pleased to offer multiple scrapping services, including mobile pickup (minimum of 500 pounds of non-ferrous scrap required) as well as roll-off dumpsters for major construction projects (minimum 5,000 pounds of scrap required). Those who have no means of transporting their scrap, or who don’t want to use their vehicle, can take advantage of these services and be compensated accordingly. We serve customers in New Jersey, as well as Delaware, southeast Pennsylvania, and parts of New York. For more information regarding our current aluminum scrap rate and how you can make some extra cash, contact us today at Sgt. Scrap.