Scrap metal dealers have been warned about container theft

Scrap metal dealers have been warned about container theft

The Scrap Metal Recycling Association of New Zealand (SMRANZ) has responded to a recent TV3 news story involving Manukau Scrap Metal and Cars Ltd saying that its members have been warned about the risks of container theft and how best to protect themselves.

“SMRANZ and internationally the Institute of Scrap Recycling Industries, Inc (ISRI) have been warning members about the risks of container theft for at least the last two years.” says Korina Kirk, President of SMRANZ.

“It appears that the dealer in question, who is not a member of SMRANZ, may have fallen victim to the theft because of the unrealistic price offered for the high-grade copper wire. The offer of $140,000 for 20 tonnes of copper wire falls well below the market value for this grade of commodity,” says Mrs Kirk.

Mrs Kirk also said that it is unusual for a scrap metal dealer to make the decision to import metals to New Zealand; most scrap metal dealers export metals to countries, including China, which have much larger manufacturing industries.

“The photos provided to TV3 also make us question the validity of the deal. For the quoted 20 tonnes of copper purchased, there is simply no way that it would have fit inside a single container given, from the photo, the loose way the material was being packed in. To achieve a 20 tonne payload, the cable would need to have been compressed into bales as is standard industry practice.”

Container theft - where materials are stolen and replaced with a dummy product, has been a trend in the industry and, in particular, in Chinese ports.

“We have had reports of sophisticated rings where locks are re-manufactured to look identical to the original locks used when a load has been inspected and locked for transport.”

SMRANZ provides guidance and support for its members in terms of market rates, trade requirements, and metal theft. It also operates a domestic stolen metals reporting network in conjunction with the NZ Police.

“In the interests of the industry, we will provide the NZ Police with any assistance needed in investigating this case. Unfortunately for Manukau Scrap Metal and Cars, it does seem that they should have adopted the stance of ‘buyer beware’ when offered the copper at such a bargain price.”

ENDS

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