In its recent issue of Steel Matters the SAISI has supported the government’s proposal for a temporary ban on the exports of scrap metal. The statement says:
“The South African Iron and Steel Institute (SAISI) has extended support to the proposal by the government to impose a temporary six-month ban on exports of scrap metals from the country. The Department of Trade, Industry and Competition (dtic) proposed the ban as part of a comprehensive plan to tackle the rising incidents of theft and vandalism of South Africa’s infrastructure.”
“The stricter interventions by authorities will likely divert significant volumes of scrap metal to the domestic market. However, certain ferrous and non-ferrous scrap grades are currently not in demand by the primary steel smelters nor the foundries. This situation is caused by limited steel exports to the USA and EU with the introduction of trade measures and special steels not manufactured by the local industry, causing a drop in demand for some special scrap grades. This matter will have to be investigated further before finalising measures to restrict and regulate trade in ferrous and non-ferrous metals waste. Further, the potential price impact on scrap metal needs to be evaluated to prevent unintended consequences that could impact the steel supply chain. The primary steel industry will actively participate with government in finding solutions and will cooperate with government in developing the most appropriate and effective measures.”
The proposed measures include:
• Expanding the definition of waste and scrap to include other common types of metal
• Developing a permit system for the export of these metal products
• Developing a permit system for the import of furnaces
• Creating a registration regime for scrap metal sellers
• Restrictions on who can sell scrap; buyers can only purchase from
registered sellers
• Enhancing border controls
• Prohibiting the use of cash in scrap metal transactions
• Blacklisting offenders
“A Metal Trade Task Force, consisting of the NPA, the National Treasury, DMRE, DPE, the dtic, the National Intelligence Coordinating Committee, the SA Diamond and Precious Metals Regulator, ITAC, SARS, SAPS and DOJ, has been set up to develop the systems and coordinate the work required to effectively address this serious issue which is costing our economy hundreds of billions of rands each year.”
Members of SAISI are ArcelorMittal South Africa Ltd; Cape Gate (Pty) Ltd; Columbus Stainless (Pty) Ltd; Force Steels (Pty) Ltd; SA Steel Mills (Pty) Ltd; Scaw South Africa (Pty) Ltd; Unica Iron & Steel (Pty) Ltd and associated members are Grinding Media SA (Pty) Ltd and SAFAL Steel (Pty) Ltd.
For further details contact SAISI on TEL: 012 380 0900 or visit www.saisi.org
