South Africa Considering Imposition of Duty on Scrap Exports?

In recent conversations with industry participants, it was learned that South African authorities are contemplating to introduce a tax on the export of ferrous scrap from the country, so as to give preference to the domestic consumers.

A close source to SteelMint highlighted "In a proposal published by the South African National Treasury - accreditation process last week, the treasury has asked for all stakeholders to comment on the said suggestion. It has been reported by concerned sources that any decision on this matter will be with the approval of all parties involved. The whole process of levying the new tax may take up to over 6 months, so in immediate term I do not see any significant impact".

South Africa ferrous scrap exports in CY19 - South Africa exported 0.52 MnT of ferrous scrap in CY 2019, almost entirely to South Asian markets - India, Pakistan and Bangladesh. India remained the largest buyer of South African ferrous scrap, importing 0.33 MnT in CY'19 with a share of 64% in total South African exports, followed by Pakistan (0.6 MnT) and Bangladesh (0.8 MnT) at 12% and 15% share respectively. .

HMS scrap is the most popular grade traded to the Asian markets, while during last week, HMS 1 (hand loaded) from South Africa in containers was being offered to Indian buyers at around USD 290-292/MT CFR Nhava Sheva.