In 2013, ITAC (International Trade Administration Commission), with the support of the Department of Economic Development, introduced a price preference system for metal scrap. The trade policy directive empowers ITAC to regulate the exportation of scrap metals. The export control measures for ferrous and non-ferrous metal waste and scrap restricts the export of these products unless they are first offered to local users of scrap metal, at a discount to the prevailing market price. The domestic consumers of scrap metal consist of foundries, mills, mini-mils and secondary scrap smelters. The rationale behind this was to make sure that scrap metal users in South Africa would have access to to adequate supplies of inputs in production. These are the changes to the current export control measures that are in place for ferrous and non-ferrous metal waste and scrap:

  As can be seen, the size of the discount that needs to be met is now greater (the scrap must be offered at even cheaper prices to local producers, before permission will be given for it to be exported). ScrapIndex.com will generally, but not exclusively, be used as an international benchmark price.  The guide is the average price achieved during the previous month or quarter where applicable, for the different types and grades of scrap metal. The percentages as reflected above will then be deducted to reflect the price at which that particular kind of scrap metal must be offered for sale to the domestic consuming industry.  The export will only be allowed to happen if the domestic industry is not prepared to purchase the scrap at the discounted price.