South Africa temporarily bans scrap exports to secure domestic supply

Wednesday, 08 July 2020 16:50:58 (GMT+3)   |   Istanbul

South Africa’s government has announced that all exports of ferrous and non-ferrous waste and scrap from the country have been banned for two months as of July 3 to secure supply of scrap metal for the domestic metals industry.

During the period in question, the International Trade Administration Commission of South Africa (ITAC) will investigate measures in order to support the domestic metals industry which is struggling with a number of tough challenges due to increased global demand for raw materials and the significant price increase for all main inputs into the sector caused by the coronavirus pandemic.

The decision which follows a request from local scrap consumers citing a shortage of sufficient volumes of reasonably priced scrap metals in the region will not affect existing export permits or applications made before the date of the notice in the government gazette.

In 2013, the government had introduced a price preference system (PPS) which does not allow the exportation of scrap metal unless it has first been offered to domestic consumers at a discount to the international price at the time of sale. 

The government is also working to impose an export tax on scrap metal, SteelOrbis understands.

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