If you’re in the metal business, construction industry, or any other enterprise that relies on brass sales or metal supplies to make a profit, it would serve you well to know about the factors that affect the prices of metals. In fact, even if you’re planning to purchase metals for simple home improvements, architectural design, or large-scale art projects, you might want to learn about the following and decide wisely on which metals to get and when to buy them.
Supply and Demand
Indeed, when the largest producer of a metal product is unable to meet high demands, the low supply can lead to increasing prices. On the other hand, such a dilemma can result in the use of alternative metals, aiming to eventually balancing the market and regulating metal prices. For instance, a spike in copper prices in the middle of the 2000s led to the prominent use of aluminum as a substitute in the production of electrical equipment and power cables.
Value of Raw Materials
Not all metals are pure and composed of a single element. For one, brass, one of the most widely used alloys, is composed of copper and zinc. Hence, any increase in the price of at least one raw material can surely influence the price of the end product.
Status of the Mining Industry This factor also has something to do with supply and demand as well as economic factors. If the mining industry, for example, introduces new and cost-efficient techniques to harvest certain metals, this can definitely benefit consumers. On one hand, worker strikes, geopolitical instability, and rising government tax rates in countries that produce the bulk of metals used around the globe can result in expensive prices.