How Robert K Kurtz Establishes The Price For Scrap Aluminum
July 27th, 2012 by Jacob Smith
Robert K Kurtz Company buys scrap aluminum in three grades: sheet and cast aluminum, aluminum siding and aluminum mixed copper clips and extrusion. Each grade has a different price affected by supply and demand and the price set on the commodities exchange market.
Sheet and Cast Aluminum: These are the most basic grades and consist of almost any kind of aluminum product, excluding aluminum cans, foils and screens. They can be any alloy from 1100 series through 7000 series. It must be free of foreign contaminates, which means it can’t mostly be aluminum. Price is determined by supply and demand. When more people want it, price goes up. There’s a small correlation with market factors.
Aluminum Siding: Pricing is based on supply and demand with values rising or falling more rapidly depending on market forces. If aluminum values increase on the metal exchange, the price of scrap aluminum siding also rises. It generally runs penny for penny with the market depending on market conditions.
Aluminum Mixed Copper Clips and Extrusion: This has a similar pricing formula to aluminum siding with price affected by fluctuations in the metal markets and supply and demand.
What factors affect the price of scrap aluminum?
Aluminum is very expensive to handle with one of the biggest costs being labor costs. Aluminum is more labor intensive than many other materials.
How volatile is the market?
The metals market operates five days a week. Just like the currency market, various commodities are traded. Price is affected by many factors including energy pricing, exchange rates and political volatility.
How often does the Robert K. Kurtz Company change its price?
The price for scrap aluminum usually changes once or twice a week, or if there’s a sharp change in the market. For small variations in the market, Robert K Kurtz company usually keep values the same and relies on cost averaging. A common question is why there’s a difference between the market rate and scrap metal rate. The simple answer is that market rates are based on refined aluminum which is dependent on the grade of scrap and the cost of refinement. The price will always be different. Robert K Kurtz company offers the best value it can afford.
What about competitors?
Robert K Kurtz company doesn’t follow or track the price its competitors offer. Instead, it pays the according to its own price formula.