COMPETITION COMMISSION RAIDS PREMISES OF FOUR SCRAP METAL PURCHASING COMPANIES
Today, 13 February 2026, the Competition Commission (Commission) is conducting search and seizure operations at the premises of four scrap metal purchasing companies operating in Germiston, Nigel, Vanderbijlpark, and Hammanskraal.
The Commission has reasonable grounds to suspect that Scaw South Africa (Pty) Ltd (“Scaw”), Cape Gate (Pty) Ltd (“Cape Gate”), Shaurya Steel (Pty) Ltd trading as Force Steels (“Force Steels”) and Unica Iron and Steel (Pty) Ltd (“Unica”) have engaged in fixing the purchase price of shredded or processed scrap metal. It is alleged that these firms have made price adjustment announcements of the same amount for implementation at more or less same time. This conduct may amount to fixing of prices and/or trading conditions in contravention of section 4(1)(b)(i) of the Competition Act 89 of 1998, as amended (“Act”).
The search and seizure operations are being conducted as part of an ongoing investigation of a complaint lodged by a third party in 2023 and a complaint initiated by the Commissioner in February 2026. During the search, the Commission will seize documents and electronic data, which will be analysed together with other information gathered to determine whether these companies have contravened the Act. The companies under investigation operate as buyers of shredded or processed scrap metals, which they use in the production of long steel products.
In terms of section 48 of the Act, the Commission is authorised to enter and search premises and seize documents that have a bearing on its investigation. The Commission has obtained a search warrant from the North Gauteng (Pretoria) High Court authorising it to enter, search the premises of these companies and seize information having a bearing to the investigation. The search and seizure operation is conducted with due regard to the rights of all affected persons.
“Scrap metal forms part of the industrial intermediary products, which is the Commission’s priority sector. Dismantling any alleged price-fixing cartel in the market will go a long way towards eliminating any existing artificial barriers to entry and creates a conducive environment for all firms, in particular small businesses and firms owned by historically disadvantaged persons, to enter and participate in the market,” said Commissioner Doris Tshepe.
[ENDS]
Issued by:
Siyabulela Makunga, Spokesperson
On behalf of: The Competition Commission of South Africa