A Guide to Understanding Electric Motor Scrap Price

Do you know that scrapping electric motors for recycling can help you earn more Australian dollars than you think?

All it takes is a good understanding of factors affecting the electric motor scrap price. Because it is highly likely that you are believing scrap metal recyclers and settling for lesser costs. And to prevent losing thousands of dollars, understanding that variable factors influencing the cost is the key.

In this blog, you will learn how metal composition of electric motors to regional pricing matters in estimating the scrap value. Also, you will find the best ways to negotiate better prices with scrap metal recycling companies. So, keep reading it till the end.

Factors Affecting the Electric Motor’s Scrap Value

Selling a junk electric motor to a metal recycling company requires you to gauge many elements. Let’s understand how these points affect the pricing.

• Metal Type:

Electric motors in machines or vehicles are built out of copper, aluminium, or steel. Most of the high-grade industrial machines contain copper-made electric motors. Even household equipment like air conditioner, washing machine, or refrigerator equips high-quality copper motors.

As the metal is highly in demand for use in industrial applications, easy to recycle, and carries substantial weight than other metals, selling copper-built motor scrap helps in getting higher prices. Unlike this, the aluminium or stainless steel generates lesser electric motor scrap price as compared to copper metal.

• Present Condition of the Motor:

Before recycling DC, AC, or other motor, you must assess its current condition. Working motors are good to reuse and yield more price than non-working motors. Though you can still sell its parts, it will be of a lower worth.

Additionally, recyclers also assess the presence of other non-metal composition in the motor. This can be rubber, plastic, oil, or anything contaminating the metal & reducing its scrap value. However, if your motor has bare metal which is free from contaminants, you must expect higher prices.

• Global Demand:

Global supply and demand is undoubtedly the best reason behind fluctuating prices. If the market has shortage of copper, steel, or other metal, recyclers will not hesitate to pay a premium for the scrap.

Nevertheless, you must find out the current market price depending on the economic conditions or metal trade war in Australia. When metal prices rise, an electric motor scrap price will follow the trend.

• Total Weight of the Scrap:

The weight of the scrap impacts the residual value as well. This might seem like an easy calculation. You may think that large motors generate more value than the smaller sizes.

However, scrap metal recycling experts weigh the accurate weight of the metal, irrespective of its sizes. So, weighing at correct scales before recycling scrap metal makes more sense than presuming anything.

• Selling Time:

Choosing the right season for selling a scrap electric motor also matters. When there is a demand from industrial manufacturers or mining companies, the prices go up. Also, companies at the end of the financial year also demand more scrap metal which creates the best opportunity for earning higher residual value.

• Regional Pricing: 

Prices vary by region. An electric motor scrap price increases when your business is located near to many recycling facilities. With more buyers, price competition will skyrocket at great pace. This is highly beneficial to generate more dollars and contribute to the greener practices.

• Recycling Costs:

The cost of dismantling and processing metals from the motor also influences the scrap value. If recyclers need to put in more labour and equipment, they may lower the price.

How to Negotiate Better Prices?

Now that you understand the points that make up the final scrap value, you are in a position to negotiate fair prices. Here are some tricks:

• Know the Current Market Value:

Get a current market price of the scrap electric motor from authorised online sources. This will serve as a benchmark during negotiations.

• Dismantle the Electric Motor Beforehand:

An electric motor scrap price is more when you are giving away well-sort and clean parts. Depending on the quantities you are selling, you must separate every metal. Also, it is best to remove non-metal parts to ask for better prices.

• Look for Reputation and Long-Term Relationships:

Many reputable scrap yards follow strict environmental regulations and pay a fair value. You must also put across your intention to build a long-term relationship with the recycling company in exchange for more scrap values.

• Ask for a Clear Price Breakdown:

When you ask your recycler about the pricing details, you get an opportunity to negotiate higher prices. The trick is to sell bulk quantities which helps to make the recycling process efficient and maximise profits.

• Negotiate the Payment Terms:

Ask for immediate cash payment to earn higher prices. Negotiating quick cash deals impacts the higher electric motor scrap price against the cheque or recurring installments.

• Don’t Settle for the First Offer:

If you receive a lower price, be willing to walk away. This shows that you are serious about making the best deal. Often, recyclers analyse your knowledge to get better value for less price. You can also make a counter offer for higher prices.

• Consider Multiple Yards:

Ensure to make some effort and visit many nearby scrap yards. This will let you compare multiple quotes and leverage opportunities.

Final Words

We hope you found this blog useful. As you see, selling a scrap electric motor is valuable when you understand the pricing mechanisms.

Remember, a scrap metal recycling company provides competitive value for the sold scrap if it meets the right requirements. Consider Union Metal Recycling for a decade of experience, flexibility to your availability, and the convenience of pickup to drop-off services.