Electric steel producers call for reinstatement of scrap metal export ban


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.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation