Scrap prices up 200pc

Business Reporter
MEPRIN Founders and Engineers are seeking a decrease in the price of scrap material, which has reportedly increased by 200 percent, thereby threatening viability of line businesses.

Meprin manager, Mr Prince Gobvu, said his company was feeling the pinch after suppliers increased the price of scrap material by up to 200 percent recently.

The company began operations in 2000 as a small scale entity at Bulawayo’s Kelvin North industrial area and manufactures different products that include mining equipment such as coco pan wheels, cannon boxes, tipping wheels, raw water/sewer equipment and manhole covers.

It also makes clean water equipment such as saddles, bush pumps, short collar joints as well as domestic products that include three legged pots and baking pots — all made from scrap metal. Mr Gobvu said the increase in prices was affecting the end user as it affects pricing.

“The price of scrap has gone up by more than 200 percent. In August (last year) we used to buy a tonne at around $100 and now the prices are $200 to $300 per tonne. Prices need to be pushed down because we cannot be seen increasing the price of our products because it is not good for the economy,” he said.

“We get these scraps from the scrap merchants here locally and just imagine the prices are now competing with a raw material, which is not fair at all.
The value has to go down because the scrap could have surpassed its life span. I think there is a need to sit down with the relevant authorities to come up with proper price structure because the situation we are in is not favourable for business at all.”

Mr Gobvu challenged business in the country to talk the same language of working together to help the economy to grow and desist from sabotaging each other.

He said everybody has to support the new Government in restoring business confidence and attracting investment.

Meanwhile, Mr Gobvu also appealed to Government to avail affordable capital for businesses to grow their capacities and be able to meet export requirements.

@Kiyaz_Cool