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          Ghana steel makers want ban on scrap export extended - Report

          It is reported that the Steel Manufacturers Association of Ghana has called on the Minister of Trade and Industry, Mr Haruna Iddrisu not to review the legal ban on export of ferrous scrap. Mr MJ 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. Mr Patel said that “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 that 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. He added that 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. Mr Patel said that 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. He said that “Therefore, opening the window for export, no matter how narrow, will only serve to exacerbate the already scarce ferrous scrap supply situation. The steel industry is ready to purchase all good ferrous scraps, high carbon and cast available.” He further added that “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.”

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