The support by the steel industry trade association comes in the midst of warnings that the proposed ban may negatively impact legitimate recyclers and informal waste collectors.
SEATTLE (Scrap Monster): The South African Iron and Steel Institute (SAISI) has extended full support to the proposal by the government to impose temporary ban on exports of scrap metals from the country for a period of six months. The Department of Trade, Industry and Competition had proposed the above said ban as the first step in tackling rising incidents of scrap metal thefts.
The support by the steel industry trade association comes in the midst of warnings that the proposed ban may negatively impact legitimate recyclers and informal waste collectors. It must be noted that the proposal is currently under public comment period.
Charles Dednam, Secretary General, SAISI noted that the stricter interventions by authorities will divert significant volumes of scrap metal to the domestic market, which will result in lower scrap metal prices. The drop in prices may discourage theft and vandalism of infrastructure, he added.
According to SAISI, reduction in theft and vandalism may remove bottlenecks in delivery networks, as such acts primarily target rail and electricity infrastructure. The augmented scrap supply will also help mini-mills, foundries and metal processors to source domestic supply of scrap metals at favourable prices. Furthermore, it will boost cost effectiveness of the domestic primary steel producers in the country.
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