Call to lift ban on scrap metal exports

member of the association, Mr Taurai Suka, said were way below prices prevailing on the international market.
“For example in India, scrap metal is being bought at between US$480 and US$600 per tonne, China US$500 per tonne and South Africa US$300 per tonne,” he said.
Mr Suka said local manufacturers were also selective on the type of scrap metal they bought while major buyer Steelmakers had stopped buying.

“Our major buyer, Steelmakers, stopped buying scrap metal in December last year and before that they were only buying mild steel at a minimum price of US$115 per tonne and a maximum price of US$144 per tonne,” he said

He added that their second buyer, Craster International -which only buys hard and mild steel and small tonnage – was offering between US$100 and US$130 per tonne.
He also bemoaned the fact that existing buyers were only buying limited quantities of scrap metal between three to 300 tonnes per month, which was now affecting their stocking levels.

“We have capacity to deliver about 100 tonnes a day to favourable buyers. Nothing tangible has been bought from us since last year and as a result our members have accumulated huge stockpiles of scrap metal both within Harare as well as outside.

“We have nowhere viable to offload our scrap metal and we cannot take on new stock, which is now affecting our downstream suppliers most of whom rely solely on selling scrap,” he said.

In this regard, Mr Suka said they were appealing to the Ministry of Mines and Mining Development to consider the lifting of the ban on scrap metal exports, especially that of high-carbon metals.

“We need permits to sell other scrap like high-carbon metals that they are not buying from us. Should we be given the permits, we will be able to export the high-carbon metals for over US$1 000 per tonne.

“The lift of the ban on scrap metal will attract international scrap metal traders to set up shop in the country. They can do this directly or indirectly by fronting local merchants, who are already dissatisfied with the prices on the local market,” he said.

Government, through the Ministry of Mines and Mining Development, imposed the ban in 2004 after local manufacturers indicated that they would be able to buy all local scrap metal and to encourage value addition of locally available raw materials.