adminIn an interview, the association’s chairman for Bulawayo chapter Mr Luxon Mangwiro said because of a monopoly enjoyed by local buyers, scrap metal prices were unfavourable.
“We are calling upon the Government to gazette the prices of scrap metal to protect us from these buyers that are fixing prices. We are being made to sell the scrap metal at between $60 and $100 per tonne which we feel is too low,” he said.
Mr Mangwiro said the prices being offered were uneconomic taking into account transport and other costs involved to bring the scrap metal to the market.
Mr Mangwiro said scrap metal fetched between $300 and $400 per tonne on regional markets such as South Africa.
He said the local buyers were taking advantage of the ban on exports of scrap metal imposed by the Government in 2004.
“When the Government banned scrap metal exports, it was probably not aware that it was creating a monopoly for these local buyers that are now fixing prices,” he said.
Mr Mangwiro said the association had since written to the Ministries of Finance, Industry and Commerce and Mines and Mining Development seeking their intervention.
He said dealers had the potential of adding value to the scrap metal by setting up their own foundries and all that they wanted was to be paid competitive prices.
“Because of the low price on the local market, as merchants we are incapacitated to finance the construction of our own foundries so that we can add value to the scrap,” said Mr Mangwiro.
Online Reporter