Steel

Business24

The Steel Manufacturers Association of Ghana (SMAG), has called on the Minister of Trade and Industry, Mr Haruna Iddrisu not to review the legal ban on export of ferrous scrap.

Speaking at a news onference on Monday, Mr M. J. Patel, Chairman of SMAG, called on the Minister to rescind his decision to open a window of opportunity for limited export and allow the ban to stay.

?Our humble appeal is that two months into the ban is too short a period for a review. We plead that the ban be allowed to continue for a minimum trial of a couple of years before any major review is considered,? he said.

He said the current supply of ferrous scraps to the industry is inadequate and to allow the export would worsen the production situation of the companies and negatively impact on jobs and livelihoods.

Mr Patel said the industry currently needs about 85,000 tonnes of ferrous scraps monthly to operate at full capacity but currently receives only a supply of 25000 tonnes, which is insufficient.

He said the expansion of the steel industry would depend on continued and sustained availability on scrap and the opening of the exportation of ferrous scraps would increase scarcity of the material.

?Therefore, opening the window for export, no matter how narrow, will only serve to exacerbate the already scarce ferrous scrap supply situation,? he said.

He said the steel industry is ready to purchase all good ferrous scraps, high carbon and cast available.

?Export of scrap at best brings in minimal foreign currency at about 350 per tonne, drastically reduces the production capacity of the steel mills and creates shortage.?

Source: GNA

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