If you check copper rates two weeks apart, the price can be noticeably different. Scrap is a commodity, and its price follows a few big forces.
1. International metal prices
Copper and aluminium are traded around the world, and the London Metal Exchange (LME) price is the benchmark many traders watch. When copper rises on the LME, Pakistani scrap buyers can pay more for copper scrap, and when it falls, local rates follow, usually within days.
2. The rupee to dollar rate
International metal prices are in US dollars. When the rupee weakens against the dollar, the same metal is worth more rupees, so local scrap rates rise even if the international price did not change.
3. Local demand
Steel mills and furnaces buy iron scrap (loha), recyclers buy plastic and paper, and their demand changes with construction, factory orders and the season. A mill that stops buying for a few weeks can push local loha rates down.
4. Taxes and duties
Changes to taxes on scrap, often announced with the federal budget in June, can change what buyers can afford to pay.
5. Grade and condition
Published rates are usually for clean, sorted material. Burnt copper, painted aluminium or wet paper sell below the headline rate. That is why the rate you read and the price you are offered can differ.
Why cities differ
Rates are often higher near big markets and mills (such as Sher Shah in Karachi or Misri Shah in Lahore), because transport to the end buyer costs less. Compare Karachi scrap rates with Islamabad scrap rates to see the difference.