Ban on scrap metal exports boosts steel industry
Anjana Samarasinghe
STEEL INDUSTRY: The local steel industry has revived by the
ban imposed on scrap metal exports from Sri Lanka. The Chairman of the
Foundry Development Services Institute (FDSI), M. Samarasinghe told the
Daily News that the ban on scrap metal works well for the local steel
industry. Now industrialists could find sufficient raw material through
scrap metal.
At present scrap metal prices remained at Rs.350 in the local market.
Before banning scrap metal exports, industrialists suffered due to lack
of raw materials and prices of the raw material peaked.
The Industrial Development Board (IDB) is also providing scrap metal
for selected metal industrialists for a lesser price.
However some metal industrialists sell scrap metal purchased from the
IDB to scrap metal traders for a higher price without utilizing them for
manufacturing brass and other metal products. Most of the small-scale
industrialists involve in this he said.
Scrap metal exports are done through BOI companies. High value metal
such as copper have been exported through these BOI companies and it is
difficult to monitor these companies.
This has made a negative impact on the high value metal industries in
the country, in finding raw materials he said. Meanwhile FDSI expects to
reward successful local metal industrialists to gain better recognition
for the metal industry.
Samarasinghe said they expect to have an awards ceremony for metal
industrialists who are involved in different sectors in the metal
industry such as water pumps and wire products.
This would motivate industrialists and bring firms recognition to the
local metal industry, he said. |