South African authorities have amended the pricing system for scrap metal following complaints from the steel industry, the country's Department of Commerce said on Monday.
Key changes to the Pricing Preference System (PPS) include the introduction of an additional 10% discount when domestic buyers are in the hinterland and scrap metal is on the coast to account for transportation costs, the report said.
Domestic buyers will also have the right to weigh and inspect the material to "ensure that the material delivered is of the same quality, type and weight as agreed upon when the proposal was drawn up and concluded, and will be entitled to claim reasonable compensation for costs incurred." /p>
These changes, introduced by the International Trade Management Commission of South Africa (ITAC), will take effect on October 2.
"The amendments to the guidelines are aimed at improving domestic consumers' access to affordable scrap metal and addressing concerns raised by the industry in the interim," the ministry said.
In July, Minister of Trade, Industry and Competition Ebrahim Patel urged ITAC to look at measures that could help the metals industry, which is suffering from rising scrap prices.
The ministry also said it was considering the introduction of an export duty.
The scrap metal recycling industry contributes R15 billion ($ 906 million) to South Africa's gross domestic product and employs approximately 350,000 people.