Huge Surge in Thefts Calls for Scrap Metal Export Ban

SEATTLE (Scrap Monster): A leading industry player in South Africa has urged the country’s government to implement ban on exports of scrap metal. This follows unprecedented surge in theft incidents involving scrap metal. The call comes in the midst of implementation of various measures by the Trade, Industry and Competition Ministry aimed at curbing rising theft incidents.

Doron Barrens, CEO, Scaw Metals Group noted that the state is unlikely to win the fight against the theft of metals unless and until it bans exports of the same, as allowing exports encourages the theft of metal infrastructure.

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As per estimates, acts of thefts and vandalism costs freight rail operator Transnet, telecom operator Telkom and power utility Eskom nearly R7bn every year. These acts are likely to have an impact of around R187bn per year to the overall economy. Much of the stolen metals is smuggled overseas. A complete ban on exports will bring scrap metal prices down and also help create a more competitive and booming domestic steel industry, Barrens noted.

On the contrary, the Metal Recyclers Association of SA noted that banning exports will not act as a solution to the issue. There is no valid proof that theft and exports are correlated, said Donald MacKay, trade adviser of the association.