General Motors has begun selling scrap metal from car production back to steel suppliers affected by the rapid rise in commodity prices.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
A Daily Telegraph report said the company previously auctioned its scrap to secure the best price.
But with the price of scrap more than doubling since last June, driven by booming demand from China, steel suppliers in the US, which produce steel using iron scrap, have come under pressure, the paper said.
The Telegraph noted that some large GM component suppliers, like Federal Forge, based in Michigan, have already been forced into Chapter 11 bankruptcy protection because they been unable to pass on the rising raw material costs.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
