Scrap metal prices soar due to exports

Anjana Samarasinghe

SCRAP METAL: Prices of the scrap metal have gone up in the local market due to the recent authorisation on scrap metal exports for BOI companies.

Chairman of the Foundry Development Services Institute FDSI M. Samarasinghe told Daily News though the Government expects to ban scrap metal exports, BOI companies have been authorised to export scrap metal recently.

The Government temporarily banned scrap metal exports for six months to safeguard the local metal industrialists in April. But in September, BOI companies have been permitted to export scrap metal, Samarasinghe said.

At the moment copper prices has increased from Rs 400 to Rs 550. Brass has increased by Rs 60 from Rs 250. The high price increase of scrap metal badly affects metal industrialists, he said.

The temporary six months ban was in effect till November 8.

Though the Government expects to ban scrap exports, industrialists are worried that it will be applicable for BOI companies preventing scrap metal exports from Sri Lanka.

Not only small-scale industrialists even large-scale companies too were affected by the high price increase of scrap metal.

Many large-scale companies have outsourced these small-scale industrialists and this will directly impact them too, he said.

Though the authorisation granted for the BOI companies it says BOI will monitor and do regular inspections on scrap exports of these companies to prevent an impact on the local scrap metal market.