PPS Statistics
The Price Preference System (PPS), forces scrap recyclers to offer their scrap to the consumers at a minimum discount before they are allowed to export (30% in the case of ferrous scrap). If there are offers at PPS or higher, they are denied an export permit. The history of PPS prices is as follow:
Examples of the calculations:
Steel scrap =250 000 T /P /M
Current ITAC price is R4 648
Add back 30% PPS discount
Steel scrap value= R6 640/tonne
=R1 660 000 000/ month
Copper scrap = $8 300 (average grade)
Exchange rate = R18.35
Rand value/ tonne= R152 305
8 000 T /P /M copper scrap
Total value= R1 218 440 000/ month