International Trade Administration Act, 2002 (Act No. 71 of 2002)NoticesAmended Export Control Guidelines on the Exportation of Ferrous and Non-Ferrous Waste and Scrap4. Price Preference Calculation |
| 4.1 | The price preference at which scrap metal must be offered for sale to the domestic scrap consuming industry will be calculated as described below: |
| 4.2 | Price preference calculations for scrap metal will be done by ITAC for all the different types of scrap metal listed in paragraph 3 (and the various grades thereof) using, in general but not exclusively, ScrapIndex.com as an international benchmark price. From the average price achieved during the previous month, or quarter, where applicable, for the different types and grades of scrap metal, an amount of 30% will be deducted to reflect the price at which ferrous scrap metal must be offered for sale to the domestic consuming industry, and an amount of 25% will be deducted to reflect the price at which aluminium scrap metal must be offered for sale to the domestic consuming industry, and an amount of 20% will be deducted to reflect the price at which all other scrap metal must be offered for sale to the domestic consuming industry. |
Notwithstanding the above, the Price Preference price for red metal waste and scrap including copper, brass and bronze waste and scrap as listed here-under, will be calculated by using the London Metal Exchange index price (LME full price) as an international benchmark average price. From the average price achieved and based on the average exchange rate during the previous week, two weeks, month or quarter, where applicable, for the different types and grades of red metal waste and scrap, an amount of 10% will be deducted to reflect the price at which the different grades of red metal waste and scrap must be offered for sale to the domestic consuming industry.
ITAC reserves the right to extend the list to include red metal waste and scrap ISRI grades which are not listed below.
COPPER ISRI grades |
Percentage of Copper LME full price |
|
BRASS / BRONZE ISRI grades |
Percentage of Copper LME full price |
BARLEY |
96.0 |
DRINK |
55.0 |
|
BERRY |
93.0 |
EBONY |
80.0 |
|
BERYLLIUM |
70.0 |
ENERV |
60.0 |
|
BIRCH |
87.0 |
GRAPE |
65.0 |
|
CANDY |
93.0 |
HONEY |
60.0 |
|
CLIFF |
84.0 |
LABLE |
70.0 |
|
CLOVE |
96.0 |
MALIC |
82.0 |
|
COBRA |
87.0 |
MIXED BRASS & BRONZE |
60.0 |
|
COCOA |
85.0 |
NIECE |
54.0 |
|
COPPER TURNINGS |
75.0 |
NOMAD & NOBLE |
45.0 |
|
DREAM |
75.0 |
OCEAN |
50.0 |
|
DRUID |
33.0 |
PARCH (BRONZE) |
65.0 |
|
SOUDRONIC COPPER |
92.0 |
NIGHT/BRASS SHAVINGS |
59.0 |
|
NOBLE 60/40 Solids |
61.0 |
| 4.3 | With regard to the calculation of the price preference at which the following waste and scrap of aluminium must be offered for sale to the domestic consuming industry:— |
Clean Mixed Old Alloy Sheet, also known as Taint/Tabor; Aluminium extrusions also known as Toto/Tutu/Tread; Mixed borings and turnings, also known as Telic/Teens; Mixed low copper aluminium clippings and solids, also known as Taboo/Tough/Tooth; New clean aluminium lithograph sheets scrap, also known as Tabloid/Tablet; Mixed cast aluminium scrap also known as Tense/Trump; clean painted aluminium scrap also known as Tale; Painted aluminium insulated scrap; Coated aluminium scrap also known as Talent; used beverage cans also known as Talap/Tale; shredded used beverage cans also known as Talc red; Bailed used beverage cans also known as Taldon; Briquette used beverage cans, also known as Taldork; New beverage can stock scrap, also known as Take; Remelt aluminium ingot also known as Throb; Remelt aluminium soes also known as Throb; Mixed irony aluminium scrap; Low grade irony aluminium scrap; Scrap auto transmissions; Scrap aluminium auto rods also known as Tally; Insulated aluminium wire scrap; also known as Twang; Supported aluminium cable scrap; Bore aluminium wire scrap; Aluminium Auto wheel scrap, also known as Troma; Aluminium nodules; also known as Tall; Aluminium foil scrap also known as Terse and Testy/Tesla; Paper backed aluminium foil waste; Aluminium auto fragments, also known as Zorba; Copper/aluminium radiators, also known as Talk.
The ScrapIndex.com price of Cast Aluminium Scrap, also known as Tense, will be used as starting point for calculating the price preference for the aluminium grades referred to above. Where the price of the grades referred to above is higher or lower than the Cast Aluminium Scrap (Tense) price on ScrapIndex.com, the price preference applicable to those grades will correspondingly be adjusted upwards or downwards by ITAC.
| 4.4 | With regard to the calculation of the price preference at which the following grades of ferrous waste and scrap (excluding stainless steel) must be offered for sale to the domestic consuming industry:— |
No 1 heavy melting steel: ISRI code 200; No 1 heavy melting steel: ISRI code 201; No 1 heavy melting steel: ISRI code 202; No 2 heavy melting steel: ISRI code 303; No 2 heavy melting steel: ISRI code 204; No 2 heavy melting steel; ISRI code 205; No 2 heavy melting steel: ISRI code 206; No 1 Busheling: ISRI code 207; No 1 Bundles: ISRI code 208; No 2 bundles: ISRI code 209; Shredded Scrap: ISRI code 210; Shredded Scrap: ISRI code 211; Steel can bundles: ISRI code 213; No 3 bundles: ISRI code 214; Machine Shop Turnings: ISRI code 219; Machine Shop Turnings including iron borings: ISRI code 220; Electric furnace bundles: ISRI code 235; Cut structural and plate scrap: ISRI code 236; Cut structural and plate scrap: ISRI code 237; Cut structural and plate scrap: ISRI code 238; Foundry Steel: ISRI code 242; Foundry Steel: ISRI code 243; Chargeable slab crabs: ISRI code 249; Pulled bead wire: ISRI code 273; Processed tyre wire: ISRI code 278; Processed tyre wire: ISRI code 282; Mixed cast scrap: ISRI code 257; Rail Steel No 2. :
Cropped Rail Ends: ISRI code 28C; No 1 heavy melting steel to No 2 heavy melting steel: ISRI code 201-206:
The monthly average Metal Bulletin, fob Rotterdam price of heavy melting steel, HMS1&2 (80:20), will be used as starting point for calculating the price preference for the ferrous grades referred to above. Where the price of the grades referred to above is higher or lower than the HMS1&2 (80:20) grade price, the price preference applicable to those grades will correspondingly be adjusted upwards or downwards by ITAC.
| 4.5 | For the calculation of the price preference at which stainless steel waste and scrap must be offered to the domestic consuming industry, ScrapIndex.com will not be used as the price index. Instead, a combination of the prices as quoted on the London Metal Exchange, Nickel trading prices; the Ferro-chrome lumpy Cr charge, basis 52% Cr quarterly major European destinations USD per lb. Cr; the Metal Bulletin Ferrous Scrap Index HMS 1&2 (80:20 mix) USD per tonne FOB Rotterdam; and Platt’s publication or Metal Bulletin Molybdenum Drummed molybdic oxide free market $ per lb. Mo in warehouse will be used. |
| 4.6 | The rate of exchange used will be the average monthly rate as provided by the SA Reserve Bank. |
| 4.7 | Price preference calculations will be published monthly on ITAC’s website. The published price preferences will indicate the price at which the specific type and grade of scrap metal is to be offered to the domestic consuming industry for the month following the month in which the price preferences were published. |
| 4.8 | ITAC reserves the right to determine from time to time the appropriate ISRI codes or grades for the scrap metal categories listed under paragraph 3 (three) herein-above which are not referred to or listed in these Guidelines, and to publish ITAC Price Preference System prices for such ISRI codes or grades in accordance with the approved method of calculation of prices for that particular type or class of waste or scrap metal. |