General Motors has begun selling scrap metal from car production back to steel suppliers affected by the rapid rise in commodity prices.

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.