Scrap firm showing its mettle

Most companies are steeling themselves for tough economic times, but it's not looking so bad for scrap-metal dealers.

A dozen trucks are working around the clock this week hauling a massive load of steel from a Lower Hutt yard to a huge boat in Wellington Harbour.

About 22,000 metric tonnes of the metal valued at more than $5 million are being shipped to South Korea by local company Macaulay Metals.

Macaulay commercial manager Phil Springford said the load, which would fill all five of the ship's holds instead of the usual three, was one of the biggest the company had ever supplied.

Prices varied with every deal, but steel was currently fetching $300 a tonne, compared to a low of $130 in December. "It certainly was a volatile market late last year but it has stabilised since then."

About 2000 tonnes of the metal came from a Taupo Fletcher Building plant destroyed in a fire, while some came from the closed Griffin's factory in Lower Hutt.

Though it could be a boon when factories closed, it was harmful in the long-term because they stopped offloading scrap metal, Mr Springford said.

"That's the irony of it. It's good now but that's the end of that line of metal."

Trucks transported the metal for 24 hours a day till yesterday. About 5000 tonnes of steel was already loaded on to the boat in New Plymouth last weekend.

The steel will be used in South Korea's construction market, and possibly in car manufacturing.

- © Fairfax NZ News