Scrap metal dealers have pointed out that soaring commodity prices, such as the steep rise in the value of copper, are bringing new challenges to an industry which is currently worth $2 billion per year to the New Zealand economy.

Copper futures in New York hit a record US$4.63 a pound on Monday, which led Clark Proctor of Metalman scrap metal group to claim that prices for steel, lead, nickel and aluminium had also seen rallies on the London Metal Exchange (LME).

He also believes that rising metal prices will put pressure on cash flow for his and other businesses. He claims “Most people in our industry – if they’re honest with themselves – would prefer the copper price to be at lower levels.”

Scrap metal is a big foreign exchange earner for this country, with its annual turnover worth almost twice as much as New Zealand’s wine exports last year, which fetched just over $1 billion.