Call for scrap metal inquiry after price-fixing-cartel ruling

Three bodies representing scrap metal recyclers in South Africa have called for an inquiry into all policies impacting the sector after last week’s ruling by the Competition Tribunal that some buyers were involved in price fixing.

- Ciaran Ryan

In a statement, the Recycling Association of South Africa (Rasa), the Metal Recyclers Association (MRA) and the Scrap Recycling Coalition welcomed the tribunal's ruling, which “confirms the existence of a buyers’ cartel in the scrap metal market”, while urgently calling for a full, independent inquiry into all government policies impacting the metal recycling sector.

ArcelorMittal and Columbus both admitted liability and reached settlements with the Competition Commission.

Scaw Metals was given corporate leniency after agreeing to cooperate with the investigation. This relates to events the tribunal says ended 17 years ago.

Cape Gate denies the allegations, but this was rejected by the tribunal.

The company has stated that it will appeal the ruling, asserting that its purchasing practices have always been fair and undertaken with the full knowledge of the department of trade, industry and competition and the Competition Commission.