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DTIC proposes extending the Price Preference System (PPS) – again! – on scrap metal in South Africa

On June 26, 2023, the South African Department of Trade, Industry and Competition (DTIC) proposed extending PPS for between 2 to 5 years, under the same terms it currently operates. PPS is the trade policy which forces scrap metal to first be offered to the domestic consuming industry at a discount before it can be exported.


According to the gazette,


“The working groups established under the [steel] Masterplan have recommended, and industry stakeholders have requested, the extension of the 2013 Trade Policy Directive [the directive which created PPS] for periods varying from two to five years”


No indication is given of which companies or people constitute the ‘working groups’. It is worth noting that the scrap metal industry is not represented in any of these ‘working groups’. We have requested the identities of the ‘working group’ members, but have not yet received a response. The last time a ‘working group’ popped up, was to motivate for the concurrent implementation of PPS and the export duties. At that time, the members included DTIC and ITAC, and, yes, it is peculiar for two government departments, one of whose job is to assess the information, to also form part of the lobbying effort to have the additional export restrictions put in place.


Interested parties have until 10 July to file their responses.


Want to better understand how the scrap metal value chain works? Mail us at info@xagta.com

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