Views Article – Sharenet Wealth

Europe, News

South Africa to investigate scrap metal shortage hurting industry

JOHANNESBURG (Reuters) – The South African government will investigate a shortage of scrap metals which is hurting the country’s manufacturing and processing sectors, the trade ministry said on Friday.

Minister Ebrahim Patel called on the International Trade Administration Commission of South Africa (ITAC) to explore measures which could help support the metals industry suffering from price increases for scrap.

“The downturn in global manufacturing resulting from COVID-19 has led to the amount of scrap metal available locally and internationally being dramatically reduced,” the ministry said on Twitter.

“Due to the steep global increase in prices and reduced economic activity, the industry has called on government to assist it urgently.”

The scrap metal industry contributes 15 billion Rand ($878 million) to GDP and employs about 350,000 people, the ministry said.

The construction, mining, and transport equipment manufacturing industries are the biggest consumers of metal products. They together account for about 15% of South Africa’s GDP.

($1 = 17 rand)

(Reporting by Helen Reid)

Scrap metal collectors transport a shell of a burnt car after xenophobic attacks that took place earlier this week in Johannesburg

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.