30 May 2016

Scrap Metal Recycling Association responds to Tasman metal charging proposal

The Scrap Metal Recycling Association of NZ is concerned that proposals such as the one being considered in the Tasman District send the wrong message to communities about metals recycling.

“The worldwide metal markets have been trading at sustained low levels, very similar to the situation with dairy commodity markets,” says Korina Kirk, the Association’s President.

“However, the main driver for the Tasman proposal is a situation where the council has entered into sorting arrangements with a company that is effectively the ‘middleman’ in the metals processing chain,” says Kirk.

“While these arrangements are efficient to local councils running transfer stations and kerbside recycling schemes during the good times, when margins become squeezed, companies like Smart Environmental can no longer profit from on-selling of scrap metal given the overhead costs in sorting and transporting it.”

“Most of the metals being recovered at the resource recovery centres will have value, just not enough to sustain the company.”

The Association is concerned because the publicity around the ‘charge to dump’ proposal makes it sound like the public has no choice but to pay to dispose of their scrap metal.

“That isn’t the case,” says Kirk.

“If the public have scrap metal to dispose of, they can take it to any licensed scrap metal recycler directly. Operators will usually trade in weights as little as one kilogram and they will buy most metals based on weight.”

Depending on market conditions on the day, there will be some quality of metals that the operator can’t buy because margins are too low – but they will take in the metal into their yard for recycling, nonetheless. (Only products that are heavily contaminated or with high volume of non-metal materials, such as computers and electronics, are regularly turned away by scrap metal operators)

“Best of all, there’s no charge to the person disposing of the metal. At a minimum, they walk away knowing their metal will be properly recycled.”

The Association encourages members of the public to ring ahead and ask their local scrap metal operator about the metals they have to recycle. There is a company directory on its website at www.scrapmetal.org.nz

ENDS

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