Mini mill operators say they are ready to go to the left with the closure of Arcelormittal, but scrapers are less than this perspective.
According to the government rescue package, the company’s exhaust steel producer Arcelormittal (AMSA) cards said that the company will continue with the winds of mills on Newcastle and Vereasinging on Wednesday.
The South African government is negotiating the long-term work of the country with the country with a long-term steel work and the long run.
The Department of Commerce, Industry and Competition (DTT) branch in February, AMSA AMSA in June 2024 in June 2024 to the working capital provided by the Industrial Development Corporation (IDC).
Posts of R417 million R417 million payments, temporary employee / employer were approved to have about 3,000 employees within 12 months under the relief scheme (inverse).
Despite the establishment of a technical working committee to solve the policy problems affecting the steel industry, no funds have been agreed for AMSA.
AMSA says that the winds of the mill cannot be stopped without an agreement.
However, negotiations on finance are underway. The company has received numerous approaches related to strategic alternatives, including “Longs”.
“None of the rapprochements do not intend to offer a proposal in terms of companies. The company will continue to investigate strategic alternatives if necessary,” he said.
Also read: Arcelormittal Long Steel Work Policy is closed for good due to operation
Mini Mills is ready to fill the gap, but …
Meanwhile, several so-called so-called milli mills, which use crumb meters, they are able to take the most part of the remaining slip from the wind – but they want to ban the exports of the crumb meter ending in December 2023.
The group includes Cape Gate, ScAW Metal, Fortune Steel, Unice, Veer Steel Mill and Coega Steel.
“The prohibition of prohibitions and time for industry trade, industrial and competition (export) is the prohibition and time of granting the price for pre-discounted systems and scraps (export), this week is stated in the statement this week.
“Relevant regulation can protect the developing local steel industry that provides basic sectors such as production support, mining, construction and car production.
“Earlier, a scrap export ban was implemented and the reconstruction would be a relatively easy and inexpensive measure that could increase industry and amsa will be a relatively easy and inexpensive measurement that can signal the sustainability after Newcastle closure.”
Mini-mill operators say local industrial operations are used in new steel production and are affected by a chronic lack of low-lying scrap metal.
The fear in the industry is anger of nutrition of AMSA’s body, which will harm the long-term interests of the country.
State-owned IDC, this mini mills were exposed to R14 billion, and demanded the fear of self-employment when it comes to deciding the appropriate tariff policy for steel.
In the center of the issue, the price-preferred system applied in 2013 (pps) offers to present holraps to local recipients at the first time to submit the scrap sellers.
They should include the cost of transportation to the domestic buyer, which means a bigger discount for mini mills.
Also: Concerns about the Steel industry: Trump’s tariffs and arcelormital closure
Buyers have a ‘odd’ volume
“If the original pps, regulatory, regulation, if they are not born ‘, they can identify anything that can determine the fines identified by themselves by themselves.”
“They” ships “slide,” they “shurur and say to Cape Town from Richards Bay, then sell it without any punishment in the truck Cape Town. “
Several scrapers have noted the behavior of some mini-mills, the behavior of some mini-mills, the provocation of scrap export work.
PPS system, fake orders are easy to do without the intention of making delivery. This keeps the local scrap steel trapped in SA without a chance to win fair market prices abroad.
These companies melt in 45,000 tons per month, ie local mills benefit about R600 million tons per month.
XA Global Trade Consultants calculates that this mini-mill has received R8.5 billion RAFs in a year in a year, Amsa received nothing.
MINI Mills exposure to I IDC R14 billion, 10 times more than the market cover, which is even a question of whether the industry is even fifty.
Read: The government is still talking to Arcelormittal, while Seifsa identifies problems
System scrap collectors and dealers hurry up
The PPS system also hurts 300,000 residential collector collectors, which make up 72% of all the crumbs collected in the country.
Scrap Dealers, the removal of PPSs would allow thousands of collector to gain a decent residence of thousands of collectors, including the cost of thousands of collector.
“This (pps) is why the scrap repeated users pay a cat for the assets of valuable crumbs,” said Van Niekerk.
PPS created an oligopolite to sell to Scrap repeated users, to sell with a selective power with a selective power with a selective power with a large purchase power given with PPS rules.
Scrap Dealers have to offer their products at 45-60% below world market prices below 45-60%, and now buyers even want to be banned from scraping to lower it.
“The mills have the opportunity to receive large discounts before a export permit, but now they want to ban the export of something they do not want – (which) already explains the story,” said Van Nieker.
The competition commission was asked to investigate the crumb steel sector, but it should still not do it.
To solve the scathing of the scrap steel theft, various proposals were made in ports and the application of independent third party to watch exports in mini mills before the application.
Van Niekerk says that the only suitable solution is a better copper in the infiltration of steelfall syndicates.
This article was published from Moneyweb. Read original here.
