By: IOL

South African steel value chain stakeholders have strongly criticized recent amendments to the Preferential Price System (PPS) for ferrous scrap metal, arguing they ignore evidence and harm the broader industry. The International Trade Administration Commission (Itac) enacted the changes, which include reducing the domestic scrap price discount for mini-mills from 30% to 25% and establishing a Technical Working Group.

Steelmaker ArcelorMittal South Africa (Amsa) contends the policy continues to unfairly advantage a small group of scrap-based mini-mills at the expense of primary producers, downstream fabricators, and recyclers. Amsa's Head of Corporate Communications, Tami Didiza, stated that independent research shows the PPS has suppressed scrap prices, constrained investment, and led to job losses and reduced industrial competitiveness. He called for the policy's immediate suspension and a transparent, evidence-based review.

Recycling associations have jointly dismissed the minor 5% adjustment as a "mockery" of their submissions, arguing it protects a tiny segment of the value chain while damaging the rest. They urge scrapping the PPS in favor of market-aligned reforms.

Echoing the need for a fundamental overhaul, economist Chifipa Mhango has called for a collaborative National Steel Revitalisation Plan and a National Steel Industry Summit. The goal would be to implement structural reforms that reposition the steel sector as a cornerstone of South Africa's industrialization and economic growth.