Business is improving as demand picks up domestically. With recyclers currently operating under Level 1 restrictions, there is a shortage of scrap metal and prices being paid are very high. Export permits are being issued for certain grades of brass (such as Drink) and aluminium scrap.
The International Trade Administration Commission (ITAC) is sending representatives to yards to verify export applications. ITAC, the Department of Trade and Industry and the Treasury will revert by July 1 2021 at the latest regarding an export tax on scrap metal.
Scrap dealers are still melting copper, brass and aluminium into blocks, ingots and billets, thereby causing a local shortage of suitable scrap metal.
In other developments, the number of COVID cases is falling and the vaccination of health workers has begun - but a long road still lies ahead. The South African rand has strengthened to 14.70 to the dollar owing to a weaker US currency. The economy is moving forward but load shedding is continuing to affect business.
Non-Ferrous Metal Works (ZAF) (Pty) Ltd, Board Member of the BIR Non-Ferrous Metals Division