Navigating policy and pricing pressures in South Africa’s ferrous scrap market

Insights into South Africa’s ferrous scrap market have recently been shared on a global platform, with Quintin Starkey, Committee Member of the Metal Recyclers of South Africa (MRA), and Board Member of the Bureau of International Recycling (BIR), contributing to BIR’s Ferrous World Mirror report.

The update highlights how the local recycled steel market continues to operate under challenging conditions, with policy uncertainty and regulatory constraints shaping both pricing and investment confidence.

South Africa’s scrap market remains structurally discounted compared to global benchmarks, largely due to interventions such as the Price Preference System (PPS) and export restrictions. While some amendments to the PPS including a reduced discount have been introduced, the absence of a finalised long-term framework continues to create uncertainty across the value chain.

The report also points to broader industry developments, including uncertainty around domestic steel production, which may impact future demand for recycled steel. “This environment continues to place pressure on recyclers, with regulation often outweighing global market fundamentals,” says Starkey.

His contribution to the BIR report reinforces the importance of South Africa’s recycling sector within the global market, while highlighting the need for greater policy certainty to support long-term growth and sustainability.

Read the full BIR Ferrous World Mirror report: https://www.bir.org/members-area/world-mirrors/mirrors-ferrous/1000042657-south-africa-5