How Scrap Metal Prices Affect What Your Car Is Worth
Published 2026-03-24 • Car Values
When you call a cash-for-cars buyer and they quote you $400 for a dead car, a significant chunk of that calculation comes down to what scrap steel is worth that day. Understanding this connection helps you know whether an offer is fair and why prices fluctuate.
What's Inside a Car, by Metal
A typical passenger car is made of: - Steel: Roughly 55–60% of total weight. Body panels, chassis, structural components. - Aluminium: Around 8–12%. Engine block (in many modern cars), wheels, some body panels. - Copper: Small percentage but high value. Wiring harness, electric motors. - Iron: Cast iron components — exhaust manifolds, older engine blocks. - Other: Lead (battery), platinum/palladium/rhodium (catalytic converter), rubber, glass, plastics.
The steel is the bulk. The catalytic converter is often the most valuable single component per kilogram.
Current Scrap Metal Prices in Australia (2025–2026)
Prices fluctuate based on global steel demand, particularly from China and India. As a rough guide based on current Australian market data: - Scrap steel (shredded/light iron): $50–$350 per tonne depending on grade and market conditions - Aluminium (mixed/cast): $500–$1,200 per tonne - Copper (bare bright wire): $9,500–$13,500 per tonne - Catalytic converter: Varies wildly by vehicle make — from $50 to $800+ for the precious metals inside
A typical car weighing 1,400 kg has roughly 800 kg of steel in the shell after parts removal. At $200/tonne, that's $160 in raw scrap steel value. Not much — which is why parts value matters so much.
Why Scrap Price Alone Doesn't Determine Your Offer
A $300 scrap metal offer is the absolute floor — the base case where the car has no salvageable parts and is pure metal recycling value.
Most cars are worth more than scrap value because of usable parts. The same 2010 Toyota Camry that's worth $160 in scrap steel might have: - A running engine worth $400 - A gearbox worth $200 - Seats in good condition worth $100 - A set of good tyres worth $200 - Various electrical components worth $100
Suddenly that "scrap car" is worth $1,000–$1,500 to a wrecker who knows the parts market.
When Scrap Prices Go Up, Car Values Go Up (Slightly)
When global steel prices spike — as they did during the COVID-era construction boom in 2020–2022 — scrap prices go up, and cash-for-cars offers rise accordingly. When steel is cheap (as it has been through much of 2024–2025), the floor price drops.
This effect is most pronounced on genuinely worthless cars — ones with no usable parts, severe rust, or stripped components. For these, scrap price is almost all of the value.
For cars with good parts, market demand for those parts matters far more than the steel price.
The Catalytic Converter Factor
Worth understanding separately. Catalytic converters contain platinum, palladium, and rhodium — precious metals that are genuinely valuable. A convertor from a Toyota Prius can be worth $200–$800+ depending on precious metal prices.
Catalytic converter theft has been a significant problem in Australia precisely because of this value. If your car has had its cat stolen (common on Priuses and some SUVs), that affects the wrecker's offer — they're losing a significant parts component.
What This Means When Getting Quotes
Quotes from cash-for-cars buyers reflect: 1. The scrap metal base value 2. Parts demand for your specific make/model 3. Their operational costs (towing, depollution, processing) 4. Their current inventory and what they need
This is why quotes vary between buyers. One wrecker might be overstocked with Holden Commodore parts and offer you less. Another might need that specific engine for a rebuild and pay more.
Getting two or three quotes and comparing them is always sensible.
How to Maximise Metal Value Before Selling
Honestly, not worth overthinking for most people. But a couple of things: - Good tyres on steel rims add real value — don't strip them off thinking you'll sell separately unless you know they're worth more that way - Running engine = significantly better offer than non-running, even on an otherwise worthless car - Keep the catalytic converter — selling it separately is possible but creates a paperwork trail issue, and most buyers price it into their offer anyway