Tumbling scrap metal prices cause trouble for ports

The sudden plunge in demand for scrap metal is causing a headache for port authorities around the world with tonnes of steel left on the docks as buyers default on purchasing.

The Scrap Metal Recyclers Association says that six weeks ago, many recyclers were paying $360 a tonne for heavy steel scrap.

A sudden plunge in world demand has seen that fall to a mere $60.

Association spokesperson Karina Munro said that suddenly wharves around the world have tonnes of scrap metal sitting on them as buyers default, and as demand drops.

Ms Munro said New Zealand exports most of its recycled steel, especially to Asia. India, China and Korea have been large customers that have helped the export of recycled metal become the 17th largest largest export category.

She says export metal was on track to catch up with wine exports until the recent sudden drop in demand.

She was unable to say what the exact export earnings were of the industry in the last fiscal year.

As to other categories of metal, such as the tin and aluminium cans picked up from households by local authority recycling schemes, Mr Munro said that recyclers tendered for the work and would doubtless be looking hard at the prices they offered in the next round.