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Africa|Automotive|Construction|Export|Manufacturing|Mining|Steel|Sustainable|System|Products|Operations
Africa|Automotive|Construction|Export|Manufacturing|Mining|Steel|Sustainable|System|Products|Operations
africa|automotive|construction|export|manufacturing|mining|steel|sustainable|system|products|operations

Electric steel producers call for reinstatement of scrap metal export ban

14th March 2025

By: Marleny Arnoldi

Deputy Editor Online

     

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A representative group of local electric steel producers has urged Trade, Industry and Competition Minister Parks Tau to reinstate a ban on the export of scrap metal.

“The ban will ensure the sustainability of the local steel industry through a reliable supply of scrap material. The local industry operations are being affected by a chronic shortage of scrap metal, used in the production of new steel.

“The shortage is putting downstream supply at risk,” the steel producers state.

With primary steel producer ArcelorMittal South Africa’s (AMSA's) Newcastle long steel plant set to close, electric steel producers are expanding their production capacity to fill the gap.

They are reportedly well-positioned to meet the majority of the country’s steel requirements.

Electric steel producers use scrap steel from end-of-life products such as discarded washing machines, construction material and vehicles to produce new steel in a sustainable manner using electric arc furnaces.

The industry is calling on the Department of Trade, Industry and Competition to reimpose the ban to allow space and time for further engagements around the future of long-term regulatory support such as the Price Preferential System and the scrap export duty. 

“Appropriate regulatory support can maintain a thriving local steel industry that supplies key sectors such as mining, construction, and automotive manufacturing,” the representative group says.

Electric steel producers currently employ more than 5 000 people, while downstream industries support tens of thousands of jobs.

A scrap metal export ban has been implemented before and its reinstatement would be a relatively easy and inexpensive measure that can boost the industry and signal its resilience after the pending closure of AMSA’s Newcastle Works, the group states.

The producers remain eager for further discussion on this critical issue, and hope further cooperation can safeguard an industry that contributes significantly to the country’s economy. 

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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