Scrap export tariff demands in South Africa

Archiv – South Africa | Secondary aluminium producers in South Africa have been calling on the country’s Department of Trade and Industry (DTI) to impose an export tariff on scrap exports.
South Africa | Secondary aluminium producers in South Africa have been calling on the country’s Department of Trade and Industry (DTI) to impose an export tariff on scrap exports.
’Local aluminium producers are, in effect, paying the highest price in the world for their scrap aluminium from South Africa’s raw material suppliers, as the various scrap metal merchants currently controlling the market export the in-demand scrap metals to more lucrative overseas markets,’ according to Willie Willemse, Managing Director of secondary aluminium producer Zimalco. ’This is tantamount to exporting energy as secondary aluminium requires less than 10% of the energy required to produce primary aluminium.’
He continues: ’Scrap metals are being exported and the finished components are imported. We are creating jobs for other countries and not our own.’ Even if the raw material is converted locally after being acquired at such a high price, and then exported, duties will apply to the completed product on arrival at the overseas destination.
Since 2003, the country’s aluminium scrap exports have been on the increase, reaching 35 992 tonnes in 2009 and 14 940 tonnes in the first half of 2010; overseas shipments of beneficiated scrap have declined from 13 803 tonnes in 2003 to 3908 tonnes last year. In the first half of 2010, the total stood at 2095 tonnes. Over the last decade, meanwhile, five secondary smelters have shut down in South Africa with the loss of more than 2000 tonnes of monthly melting capacity.