Older Persons Act, 2006
R 385
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 as the case may be) using, in general but not exclusively, ScrapIndex.com as an international benchmark price. From the average price achieved during the previous day, week, two weeks, 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. |
Scrap metal ISRI grades that are non-specific as to scrap metal content specification and where it is recommended in the ISRI Specifications, for example, that scrap metal be sold by analysis, sample, recovery basis or the like, and where a particular reference to minimum percentage content (for example copper scrap ISRI: Druid: Insulated Copper Wire Scrap) is not specified in the ISRI Specifications, a valid offer can be made at a minimum of 3% of the content of the metal in question (i.e. 3% copper content in the above-mentioned example). Should the content of the metal in question of a specific ISRI grade be more than 3%, a valid offer can be made on an analysis, sample or recovery basis less the relevant PPS percentage discount for the type of scrap metal in question.
[Section 4(4.2) paragraph inserted by section 2 of Notice No. 305, GG44593, dated 21 May 2021].
| 4.3 | 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 day, 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. |
The method of calculation of the above-mentioned price preference prices for the different ISRI grades to be applied by ITAC as the formula is the calculation of the Rand value and 10% PPS discount against the percentage of the red scrap metal content as reflected in the column here-under.
Formula: LME convert to Rand x (percentage content – [less] 10%)
E.g. LME to Rand x 86% (Barley 96% - 10% = 86%)
E.g. R100 000 x 86% = R86 000
[Section 4(4.3) substituted by section 1 of Notice No. 852, GG45954, dated 25 February 2022].
|
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 |
3.0 or analysis, sample or recovery basis |
PARCH (BRONZE) |
65.0 |
|
|
SOUDRONIC COPPER |
92.0 |
NIGHT/BRASS SHAVINGS |
59.0 |
|
|
[Section 4(4.3) Table substituted by section 3 of Notice No. 305, GG44593, dated 21 May 2021]. |
NOBLE 60/40 Solids |
61.0 |
||
Red metal Table 2
| 4.4 | When a valid offer is submitted in terms of the PPS and the scrap metal as reflected in the application is purchased in terms of the PPS by a local consumer, it must be transported and delivered to the consumer’s scrap metal processing premises, for the seller’s account. |
Transport may be arranged by the buyer, for the seller’s account, should the seller fail to arrange for transportation of the scrap metal in question. Parties may also agree to suitable transportation and delivery costs.
[Section 4(4.4) substituted by section 4 of Notice No. 305, GG44593, dated 21 May 2021].
| 4.5 | Notwithstanding the above, the price preference price for all ISRI grades of aluminium waste and scrap as listed here-under, will be calculated by using the London Metal Exchange high grade aluminium official cash price index as an international benchmark average price. From the average price achieved and based on the average exchange rate during the previous day, week, month or quarter, where applicable, for the percentages of different types and grades of aluminium waste and scrap, an amount of 25% will be deducted to reflect the price at which the different grades of aluminium waste and scrap must be offered for sale to the domestic consuming industry. |
The method of calculation of the above-mentioned price preference prices for the different ISRI grades to be applied by ITAC as the formula is the calculation of the Rand value and 25% PPS discount against the percentage of the aluminium scrap metal content as reflected in the column here-under.
Formula: LME convert to Rand x (percentage content – [less] 25%)
E.g. LME to Rand x 45% (Taint Tabor 70% - 25% = 45%)
E.g. R20 000 x 45% = R9 000
[Section 4(4.5) substituted by section 2 of Notice No. 852, GG45954, dated 25 February 2022].
|
Aluminium ISRI Grades |
Percentage of Aluminium LME full price |
|
|
|
|
Taint Tabor |
70% |
|
Toto/ Tutu / Tata / Tread |
90% |
|
Telic / Teens |
60% |
|
Taboo / Tough / Tooth |
72% |
|
Tabloid / Tablet |
93% |
|
Tense / Trump / Twist |
72% |
|
Tale |
49.50% |
|
Tally |
59.50% |
|
Tall |
92% |
|
Talc |
43.50% |
|
Talcred |
58.50% |
|
Taldon |
92% |
|
Taldork / Taldack |
63.50% |
|
Take |
73.50% |
|
Tarry A |
74.50% |
|
Tarry B |
73.50% |
|
Tarry C |
65% |
|
Tepid |
Analysis/Sample/Recovery Basis |
|
Tooth |
80% |
|
Twitch |
72% |
|
Tweak / Twire |
Analysis/Sample/Recovery Basis |
|
Troma |
82% |
|
Talon / Taste / Tann / Tassel |
86% |
|
Twang |
Analysis/Sample/Recovery Basis |
|
Trill |
Analysis/Sample/Recovery Basis |
|
Thigh |
Analysis/Sample/Recovery Basis |
|
Thirl |
Analysis/Sample/Recovery Basis |
|
Thorn |
Analysis/Sample/Recovery Basis |
|
Twirl |
Analysis/Sample/Recovery Basis |
|
Terse / Tetra / Tesla |
54.50% |
|
Zorba |
Analysis/Sample/Recovery Basis |
|
Throb |
60.50% |
Aluminium Scrap Metal Table
[Section 4(4.5) substituted by section 4 of Notice No. 305, GG44593, dated 21 May 2021].
| 4.6 | With regard to the calculation of the price preference at which the following grades of ferrous waste and scrap metal (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 daily, weekly, monthly or quarterly average Metal Bulletin, fob Rotterdam price of heavy melting steel, HMS1&2 (80:20), will be used as a 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, respectively, by ITAC.
[Section 4(4.6) substituted by section 5 of Notice No. 305, GG44593, dated 21 May 2021].
| 4.7 | For the calculation of the price preference at which stainless steel waste and scrap metal must be offered to the domestic consuming industry, ScrapIndex.com will not be used as the price index. Instead, acombination 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. |
| 4.8 | The rate of exchange used will be the average daily, weekly, monthly or quarterly rate as provided by the SA Reserve Bank. |
| 4.9 | Price preference calculations will be published daily, weekly, bi-weekly, monthly or quarterly 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 period as indicated above following the period in which the price preference prices were published. |
| 4.10 | 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 herein-above which are not referred to or listed in these Guidelines, and to publish ITAC PPS prices for such ISRI codes or grades in accordance with the approved method of calculation of prices for that particular type or class of scrap metal. |
[Section 4(4.10) renumbered by section 6 of Notice No. 305, GG44593, dated 21 May 2021].
_______________________________________
2 Red metal grades
