SCRAP METAL PREFERENTIAL PRICING: INPUT SOUGHT ON PREVAILING DISCOUNT FOR LOCAL PROCESSORS

The Department of Trade, Industry & Competition has called for input by 22 May 2025 on the merits or otherwise of adjusting a 30% discount on the price of scrap metal purchased by domestic processors.

This follows the conclusion of an International Trade Administration Commission investigation into challenges facing South Africa’s integrated steel value chain and the likely impact of modifying the discount level. The investigation began in April 2025, as SA Legal Academy reported at the time.

Should an adjustment be made, all other scrap metal export control measures will remain in place. As SA Legal Academy has also regularly reported, these measures were introduced in 2012 with the aim of:

  • ensuring ‘an affordable supply of quality scrap metal’ to domestic processors
  • safeguarding employment in that industry, and
  • maintaining/increasing its capacity in the context of infrastructure development imperatives.

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Published by SA Legal Academy Policy Watch

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