It is reported that a scrap metal dealers pressure group has called for an independent audit to determine the price of scrap metal in the country to facilitate fair trade between them and manufacturers.

Mr Fabian Chisulo chairperson of the pressure group said that a committee was instituted recently to look into the price mechanism of scrap metal. The audit was not neutral and that it was in favor of manufacturers. He added that "We were shocked as scrap metal dealers to learn at the recent meeting we had with the Deputy Minister of Commerce, Trade and Industry, Ms Keith Mukata that the findings from the committee on the price mechanism came out contrary to the real situation."

He said manufacturers agreed that they bought ferrous metal (mild steel) and non ferrous metal (copper, brass, bronze, aluminum, stainless steel) from scrap metal dealers at a favorable price, which was not the case.

He added that "Most manufacturers apart from Trade Kings and Scaw Metals (in Kitwe) buy both ferrous and non-ferrous, but other foundries do not buy cast iron and hard steel unless mild steel."

He said the current price that most manufacturers are offering is lower than what scrap metal dealers earned before the ban of scrap metal export, adding that prices being offered by manufacturers vary between ZMK 700,000 and ZMK 1.3 million.

He said that "Before we were banned from exporting to South Africa, we used to sell at ZMK 2.3 million per tonne. We need fair prices if we have to sell locally."

Another member from the group, Ms Jenipher Makukula, said there is need for scrap metal dealers to regulate themselves when doing business because of Zambia's free market economic status. Ms Makukula said that some manufacturers were selective in the buying of scrap and determined the price on behalf of the dealers.

And Ms Shine Moonga said she has over 15,000 tonnes of aluminum in stock which cannot be sold at a cheaper price offered by local manufacturers, adding that most manufacturers are not buying aluminum. She added that "I bought 15,000 tonnes of aluminum from Zesco Limited's old transformers and I still have the receipts. If I cannot sell, how will I survive?"

(Sourced from www.daily-mail.co.zm)