Picot and Rouille 'could close' if it loses contract
It has written to States members and election candidates asking for support.
Transport and Technical Services Minister Mike Jackson said the contract had to go out to tender and he did not think the firm had put in a bid yet.
He said: "We are obliged under States protocol to go out to tender and I don't believe we've yet received one from Picot and Rouille and we look forward to doing so."
Picot and Rouille sends about five shipments of metal to Bilbao in Spain every year, costing about £500,000.
The company said although scrap prices were good at the moment, there were times when the price fell making it difficult to trade.
But in the letter it said it had always paid back the States subsidy when the price rose once again.
It said it was concerned the States was opening the contract out for tender not only in Jersey but to the UK as well, which could mean the end of a local family-run business.