Recycling body warns government inaction threatens steel industry

The Recycling Association of South Africa has warned that unresolved scrap metal policy issues are hurting steel production, businesses and livelihoods.

The Recycling Association of South Africa says government’s failure to address problems with scrap metal policy is putting further pressure on the country’s struggling steel industry.

RASA says production and capacity utilisation continue to decline, while delays in government action are costing businesses and jobs.

The association is particularly critical of the Price Preference System, saying a government-commissioned review identified serious problems and recommended its suspension more than a year ago.

It adds that the system remains in place, suppressing prices paid to scrap collectors without delivering the intended benefits to local steel producers.

It warns that more than 400-thousand informal collectors depend on the recycling sector for their livelihoods.

RASA's Geoff Borrajeiro is calling on government to urgently review existing policies and consider the impact on the entire metals value chain, warning that further delays could undermine industrial recovery.

“South Africa cannot afford to lose industrial capability while policy processes continue without resolution. Every avoidable delay raises the cost of recovery. The metal recycling sector, RASA, is ready to contribute to any process that prioritizes immediate action on documented failures and evaluates interventions across the full value chain. Government must provide the leadership and speed of execution required.”

Meanwhile, earlier this year a KZN e-waste organisation has raised concerns over what it says is an increase in illegal dumping by unregulated recyclers in the province.

KZN Electronic Waste Recyclers' Dave Chetty says e-waste is becoming a concern across the province, particularly in rural communities.

He says many households continue to store old electronic devices for extended periods or dispose of them incorrectly.

Chetty says unregulated recyclers often recover only valuable materials while illegally dumping the remaining waste, creating a major environmental hazard.

He has urged businesses to invest in public awareness campaigns, host employee e-waste collection drives, and ensure obsolete equipment is handed over only to licensed and compliant recyclers.

“Corporates and businesses release e-waste to anyone calling themselves a recycler. Companies need to ask recyclers, "What happens to the items that we're giving to you? Do you have a SAPS 601A and a SAPS 601B recycler and second-hand goods permit? Are you affiliated by the Department of Forestry, Fisheries, and the Environment?

“Do you comply with and have been assessed and rated for norms and standards for storage?"

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