Reinstate scrap metal export ban—manufacturers

Government’s resolve to repeal scrap metal export ban is impinging on the country’s steel manufacturers as they are struggling to obtain the raw materials for their production.

Until 2014, the country’s laws prohibited export of scrap metal, but government lifted the ban having reportedly observed unusual heaps of the scrap metals nationwide.

In an interview this week, Nyasa Metals director Choudhary Asif Nawaz said the industry is facing critical shortage of raw materials because government has let free traders to export the material.

“Few months ago, we were buying the raw materials at K20/K25 per kilogramme [kg] but following the intensification of exports, traders are now charging as much as K100 per kg. This is retrogressive for the industry and its survival is at risk,” lamented Nawaz.

Ramesh Kumar general manager of Miscor, said their production has been reduced due to lack of raw material.

“We need about 500 tonnes a month to effectively operate but just imagine last month we only managed to obtain 40 tonnes of raw material.

“Government should do something on exportation of scrap metals otherwise at the level we are in, local manufacturers will shut down,” he said.

But Ministry of Industry, Trade and Tourism spokesperson Wiskes Nkombezi said they are not aware of the scarcity of the raw material due to traders’ choice of exporting the metals than selling locally.

He said: “They have not brought that issue to us as of now, at least to my knowledge. But it is an issue that needs all the stakeholders to discuss because there may be several factors around it.” n