South Africa's government is on its way to control the export of Ferrous and Non Ferrous Scrap on the verge to improve the domestic market. South Africa's Metal Recycling Association (MRA) fears that ongoing export activity will heavily impact scarp market as well as employment.
At mid of September'13, South Africa's government will impose a restriction on export of scrap, so as to give first preference to the domestic players, to fetch the material at a discounted price determined by the International Trade administration Commission of South Africa (ITAC).
According to the ITAC pricing policy, scrap metal should be offered to domestic buyers at a 20% discount to international spot prices. ITAC will calculate the discounted prices for different scrap grades at the end of each month and publish them on its website.
And also it should be ensured that the quality and quantity of scrap intended for export should be measured accurately and has to be clearly reflected in the application form for export permits. All application forms must be signed by a metallurgical engineer to confirm the grades, type and quantity of scrap available for export.
On the other side, MRA's spokesman Mike Wilson said that the Metal Recycling Association (MRA) would take legal action against the South African government as soon as the export order comes into effect as it is majorly hampering the small scale scrap industry as well as employment.
“The cost of transporting scrap from different parts of the country to the port and from there to an overseas customer already increased the price of scrap substantially. Therefore, the domestic buyers have already purchased the scrap at discounted prices,” he further added.
Source: Recycling International
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