Ghana government will think about the liberalization of scrap metal exports

According to the Daily Graphic, a monitoring committee was created under the Ministry of Trade and Industry to determine the degree of impact of the ban on the export of steel scrap from the country on its economy. As you know, at present, the sale of scrap metal abroad in Gan is a criminal offense.

"The monitoring committee under the chairmanship of the head of the ministry will conduct a thorough analysis of the situation and if evidence is found that there are excess scrap metal, the government will consider the issue of changing the law," the profile minister Ghana Harun Iddrisa told the Daily Graphic newspaper.

After the adoption of new rules for sales of ferrous metal scrap in March this year, equating scrap export to smuggling, local metallers held several mass protests, requiring the liberalization of the legislation. However, the government is adamant.

“We must create a strong metallurgical industry and that is why we do everything possible to protect the existing steel business and help companies intending to enter it,” emphasized Mr. Harun Iddris, explaining several times low prices for scrap metal, which are paid by the Ghana metallurgical plants.

Metallurgical companies and scrap metal suppliers must find a compromise in matters of pricing and supply volumes. For this, both sides must cooperate directly without intermediaries, the minister believes. The confusing pricing will become the subject of the investigation of the new monitoring committee.

Recall that the Ukrainian government actually banned the export of scrap metal from the end of last year by simply not installing the quota for its sales abroad. As a result, local scrap collectors are forced to hand over him to steel factories in Ukraine at a price below $ 200 with VAT or $ 160 without VAT, while in neighboring Turkey scrap metal is purchased in England and America to 360 - 380 dollars per ton. It is easy to calculate that by putting the scrap to Turkey at a price of $ 360, Ukrainian metallers will receive at least $ 430 per ton, as they will undoubtedly receive reimbursement of export VAT.