The PPS forces down the price of scrap metal sold locally. It was meant to be replaced by export duties, but Minister Patel decided to extend both PPS and export duties. This blog should not exist as PPS was meant to come to an end on 1 August 2021.
The PPS on aluminium scrap metal has been increased by 14.27%. In other words, anyone selling scrap aluminium will now receive 14.27% than before the change. This will flow upstream to the waste pickers and the factories that generate aluminium scrap metal (think Nampak and other beverage can suppliers).
The change in the discount on red scrap drops its value by 0.47%.
On 3 September 2021 ITAC proposed changing the PPS formula for aluminium and red scrap metal, to force a larger discount when selling these products locally. We requested the following information from ITAC after the comment period closed on the above amendment:
- The non-confidential application that gave rise to the proposed formula;
- The identities of the stakeholders who the interactions happened with;
- Which of the stakeholders supported the proposal and which opposed it;
- The information shared between the stakeholders in the lead up to this proposal.
ITAC’s response to our request was that no specific application had been filed, but “‘several engagements with industry stakeholders in various forms” had occurred. It is not clear who in the recycling industry had been engaged before the investigation had been initiated. This secrecy is particularly relevant in light of the litigation which is currently underway about the secrecy around actions in the scrap metal sector.
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