Business is still very slow as there is not much demand from foundries and other consumers.
Aluminium and steel scrap is still being exported; the International Trade Administration Commission is continuing to visit works to verify the quality and quantity applied for on export applications. It has been reported that some exports are being stopped because local consumers are buying material.
There continues to be an increase in export applications for Drink and Nomad which is affecting the brass scrap market and local consumers. Dealers are still having their copper scrap converted into ingots/blocks and exporting the product, although margins are being squeezed.
The outlook for public utility ESKOM remains difficult as a required restructuring will take time and needs approval from the unions.
The rand has weakened against the US dollar and is trading at ZAR 14.85 at the time of writing. South Africa’s growth outlook for 2019 has been reduced to 0.70% but credit rating company Moody’s says the country is safe from a downgrade for now. However, shrinking manufacturing production is a concern for the economy. Sales of motor vehicles continue to disappoint when compared to last year, and the only positive outlook is for exports. The price of petrol increased in September on the back of a stronger oil price and weaker currency.
Non-Ferrous Metal Works (ZAF) (Pty) Ltd, Board Member of the BIR Non-Ferrous Metals Division