Zimbabwean Industry Calls For Complete Ban on Scrap Metal Exports

SEATTLE (Scrap Monster): The Zimbabwe Institute of Foundrymen (ZIF) has demanded complete ban on scrap metal exports. Although the country has a scrap metal export ban in place, as is the case with other countries in the region, companies are found exporting them in huge quantities by applying for waivers. As per ZIF estimates, the country could save nearly $120 million per annum and hundreds of jobs if scrap metals are processed within the country, without exporting them.

According to Mr Itai Zaba, Vice President, ZIF, the Ministry of Industry and Commerce should come up with strict measures to prevent export of scrap metals. The foundry industry currently faces acute shortage of scrap metals, as a result of which the companies in the sector are currently operating at close to 32% of their total capacity. The scrap metal availability now stands at around 10,000 tonnes per month as against the monthly requirement of around 27,000 tonnes. The imposition of a ban would raise the average capacity utilization rates to almost 80%, Zaba said.

As per ZIF estimates, scrap metal exports to South Africa have thrived despite local foundry industry offering competitive rates. Many foundry industry players have closed their operations, due to scrap shortage and other viability issues. Currently, there are only around 18 major players operating in Zimbabwe.