Uncompetitive scrap metal prices causing further decline in industry

“Unless strong action is immediately taken to stem the export of scrap metal and keep it in South Africa at competitive prices, the scrap beneficiating industry will further decline and directly affect the aluminium sector,” said aluminium foundry alloys producer Zimco Aluminium Company (Zimalco) sales and marketing director Bob Stone in a recent Engineering News report.

“Owing to a high price for scrap metal and closures in the consuming industries, final original-equipment-manufacturer users are importing more finished products that were and should be manufactured locally.”

“The effect on local industry can clearly be seen and has been adding to the current economic woes of South Africa. The local manufacturing of aluminium products can create jobs and assist government in achieving its National Development Plan goals, but, instead the current situation is further contributing to deindustrialisation.”


“Should deindustrialisation continue, the different uses of aluminium will be affected, as secondary aluminium produced from scrap metals is a necessity if South Africa is to have safe and drinkable water, a stable electrical distribution and steel industry, as well as a successful automotive manufacturing and an efficient mining industry,” Stone explained.

“Scrap aluminium is being exported because there is a high international demand for scrap metal of all types from countries such as India,” Stone added. “Therefore, that should the exporting of aluminium, besides other metals, persist, the beneficiating industries in South Africa will further decline with the closing of businesses, subsequently resulting in further job losses,” warned Stone.

SO 50001:2011 certification
Zimalco has recently been certified to the ISO 50001:2011 Energy Management standard. This certification highlights the company’s commitment to using its energy resources more efficiently and managing and maintaining the significant energy users in the operations.

This efficient use of energy will have a positive effect on the Scope1, or direct, Greenhouse gas emissions, while a contribution to the Scope 2, or downstream Greenhouse gas emissions from energy suppliers is maintained.

The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) earlier this year announced winners of its 2nd Annual Awards for Excellence. Zimco Aluminium Company, was declared the winner in the Most Innovative Company of the Year category.

For further details contact Zimalco on TEL: 011 914 4300 or visit www.zimalco.co.za