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The Citizen
a day ago
- Business
- The Citizen
Steel billet exports increase, scrap metal exports slump
This created arbitrage with an estimated value of R780 million for exporters. Policy interventions in the scrap metal market have created arbitrage between the price preference system (PPS) discount and the export duty on scrap metal products. A recent study (XA's Scrap Metal Report 2.1) by XA Global Trade Advisors (XAGTA) on the impact of these policy interventions on waste pickers showed that the export of 400 000 tons of steel billets (to circumvent the export duty) resulted in an arbitrage of R780 million. Arbitrage refers to taking advantage of price differences in different markets to make a profit. The first policy intervention was introduced in 2013 by way of the PPS. Scrap metal dealers can only obtain an export permit for their product once they have offered it at a 30% discount to local buyers such as the mini mills. Only then are they allowed to export the scrap, but it comes with a 20% export duty. There has been a noticeable increase in the export of steel billets and a decline in raw scrap metal exports. ALSO READ: US tariff an existential threat for a third of metals and engineering sector Incentivising arbitrage Donald MacKay, CEO of XAGTA, explains that mini mills get their raw material at a discount (PPS), melt it into steel billets (that are not a usable product such as rebar) and export the billet duty free. Source: XAGTA 'We have ended up rewarding the companies that are involved in these exports with R779.9 million … I don't think we should be incentivising scrap metal arbitrage,' says MacKay. 'The intention certainly was never to create the arbitrage, but the effect has been arbitrage. I don't think it is a healthy situation.' In theory it would be easy to correct the arbitrage created in the scrap metal industry, but in practice, this isn't the case. 'The reason for the arbitrage, in my view, is that there is too much money entering the sector that has no natural demand.' The easiest to prevent the arbitrage is for the Industrial Development Corporation to stop funding new mini mill operations, says MacKay. 'I am not saying they should pull their funding from existing operations, but you must stop putting more money into this space when there is no demand.' ALSO READ: A brighter future for South African steel? The trigger XAGTA has been keeping a close eye on the sale of scrap metal globally and in South African for several years. A statement by Neva Makgetla, chief economist at Trade and Industrial Policy Strategies (Tips), triggered their recent study. Makgetla is quoted as saying that the impact of the interventions on waste pickers is minimal, as they are not selling the kind of metal that the mini mills are consuming. According to the International Alliance of Waste Pickers, the informal recycling sector in South Africa consists of between 60 000 to 90 000 waste pickers. Many are migrants who move from rural to urban and peri-urban areas to find employment opportunities. According to a survey conducted by the University of Johannesburg, more than 70% of respondents earn less than R600 per week. The majority (39%) earn between R300 and R600 per week. They are not officially employed by either government or the private sector, yet according to the Council for Scientific and Industrial Research, informal pickers saved municipalities between R309 million and R748 million in landfill airspace in 2014 alone by simply diverting recyclables from them. MacKay says that, from its conversations with waste pickers, it is evident that the bulk of the volume they collect is paper, glass and plastic. However, the bulk of the value tends to come from metal. ALSO READ: Government called to take the lead in restoring the steel industry Policy matters XAGTA asked recyclers what the biggest risk to their scrap yards was. Their answer: interventions by government in the form of policy changes that keep the price of scrap metal artificially low. 'That was quite surprising because one would have thought theft at their premises would be a larger risk,' says MacKay. He adds that although the XAGTA advisors are not crime experts and there is a lack of sufficient data, they could not find a correlation between the imposition of PPS, export duties, or export bans on the theft statistics. However, the policy interventions are not yielding good outcomes for the country, particularly not for the poor and most vulnerable people. He would like to see them go but if they are not scrapped, he believes they should at least be lowered to something 'less predatory'. 'If we get what was promised, which was to replace PPS with the export duty, it would lessen the amount of heat in this space,' says MacKay. The International Trade Administration Commission is reviewing the PPS, and the findings are expected to be released later this year. This article was republished from Moneyweb. Read the original here.
Press and Journal
24-07-2025
- Press and Journal
'I think I have killed mum': Driver's frantic call to dad moments after horror head-on crash
A trapped and injured BMW driver told his father moments after a head-on collision with a lorry on the A9: 'I think I have killed mum'. Dashcam footage from the HGV and another car captured the moments Gregor MacKay tried to overtake up to four cars in oncoming traffic – with devastating results. The black BMW was lifted off its wheels and rotated in the air, leaving Karen MacKay with a brain injury, ruptures to her bowel and colon, a fractured leg, a cracked cheekbone and a cracked eye socket. Her son sobbed in the dock of Inverness Sheriff Court as he pled guilty to driving dangerously on the A9. Following the court appearance, his father Donald, 64, told The Press and Journal his wife was 'making a great recovery' although his son was 'struggling'. Mr MacKay said: 'As a family, we would like to thank all the members of the public and emergency services who attended the accident. 'The events of the day were terrible, an accident. I continue to support both Gregor and Karen.' They had both set off from their home to attend a dental appointment in Inverness on the morning of December 19 2023. One motorist observed MacKay make what he regarded as a dangerous overtake on the Dornoch Bridge before watching him do the same a short time later with almost tragic results. Video, complete with a soundtrack of horrific screaming, was played in Inverness Sheriff Court. It showed the lorry trying to avoid the collision by mounting a grass verge. However, the BMW was driven straight into the front of the HGV without trying to avoid hitting it, the court was told. Fiscal depute Pauline Gair said the driver spoke to witnesses at the A9 crash scene near Delny, outside Invergordon. 'It's my fault', MacKay admitted, adding: 'I went to overtake and didn't realise there was two vehicles in front. I hesitated.' Mrs Gair said MacKay suffered pelvic injuries, confining him to a wheelchair during recovery. The prosecutor said his mum 'will have a lifelong disability and may need lifelong care'. However, Mr MacKay said the prognosis for his wife was more positive. 'It's all coming around. She's making a great recovery,' he said. 'The way she's going, she won't [need lifelong care]. She's cooking, she's doing everything, she's getting on fine.' Sheriff Gary Aitken told the sobbing offender that he may be jailed. 'It is not often I am lost for words, but the sheer arrogance and stupidity, driving like that on the A9 or anywhere else, is dangerous. It beggars belief,' he said. 'It was gross stupidity. There was plenty of room to get back in. What if it had been a mother and child in a Mini? 'It is a miracle that either of you are still alive at all. Poor driving can have catastrophic consequences, and it has changed your mother's life. 'A custodial sentence must be a real possibility here.' The sheriff deferred sentencing MacKay, of The Avenue, Reay, in Caithness, until September 1 for a background report. He was disqualified from driving in the meantime and had his bail continued.
Winnipeg Free Press
24-07-2025
- Business
- Winnipeg Free Press
Fishers' tale of concern, opportunity
Shipment of essential goods and the future of fishers' livelihoods are among the concerns some Indigenous groups are raising as Ottawa looks to rid itself of its fish marketing branch. 'You're setting us up for failure,' said Dave MacKay, business manager of Negginan Fishing Station. Fishing is one of Poplar River First Nation's biggest trades, MacKay relayed. Negginan Fishing Station — and related operations — employ roughly 100 people on the First Nation on the east side of Lake Winnipeg. SUPPLIED The MV Poplar River is operated by the Freshwater Fish Marketing Corporation. It's like clockwork: a boat, the MV Poplar River, arrives in the spring and the fall for catches of pickerel and whitefish. The barge also brings critical items like fuel and building supplies, MacKay said. Poplar River lacks an all-weather road, making it inaccessible by truck when there's no ice. The First Nation declared a state of emergency in 2022, after the MV Poplar River was damaged by an explosion. Now, the boat is back in business — but MacKay wonders for how long. The Freshwater Fish Marketing Corp. (FFMC), a federal Crown corporation, owns the MV Poplar River. At one point, the FFMC had a monopoly on fish marketing and sales in Canada. It began in 1969, and has a mandate to maximize long-term returns to fish harvesters. In recent years, however, provinces have opted out of the Freshwater Fish Marketing Act. Ontario withdrew in 2011; Saskatchewan and Manitoba followed in 2012 and 2017, respectively. It allowed the provinces' fishers to strike deals with buyers outside the FFMC. Alberta closed its commercial inland fishery in 2014. Now, the Northwest Territories is the act's only participating jurisdiction. The federal government has since looked to divest itself of the FFMC. A government-appointed advisory council recommended regional fishing groups and processors or an Indigenous economic development corporation take the reins. (Much of the FFMC's suppliers are Indigenous fishers in the Prairies. The FFMC counted more than 1,400 fisher sources in 2023.) 'It sounds wonderful on paper,' MacKay said. 'Not only do Indigenous communities get to participate, they're going to have equity.' However, he's skeptical of the rollout. In December, Ottawa launched a request for proposal to take over the FFMC. Final letters of intent are due by Sept. 17, per a federal spokesperson. The Crown corporation's operating plan exceeded $76 million in 2024; it had more than 300 staff and several Manitoba facilities. Processing fish, marketing and transportation are among its roles. It's not the skill set of a traditional fisher, MacKay said. 'It's a huge undertaking,' he said. 'Economic reconciliation … is important. You will not achieve it if you just throw the keys at us.' Poplar River has joined a collection of Manitoba and Saskatchewan First Nations bidding for FFMC. MacKay worries the operational money, line of credit and expertise needed will lead the group — or any bidding group — to fail as they take over the corporation. 'If we really want to do this right, we need to gradually transfer the ownership,' he asserted, adding a transfer without support would cause 'catastrophic collapse.' Fisheries and Oceans Canada, which is overseeing the transformation, didn't answer questions about hand-off details. It's unclear whether it's looking to sell the Crown corporation or how long it plans to be involved post-acquisition. The federal department received 11 expressions of interest, spokesperson Axel Rioux said, declining to publicly disclose names. 'Bidding criteria for the request for proposals were designed to promote continued market access for rural, remote and isolated harvesters and ensure economic reconciliation efforts,' Rioux wrote in a statement. The Manitoba Métis Federation has also bid on the FFMC, though president David Chartrand said he's opposed to the current divestiture set-up. 'The way this thing is rolling out, we're very concerned about where we stand as Métis business people,' Chartrand said. 'This is probably the last traditional economy that has the potential of being taken from us.' In 2022, roughly 85 per cent of Manitoba's 2,000 licensed commercial fishers were Indigenous. A significant portion — maybe half — are Métis, Chartrand estimated. 'The financial state of Freshwater is not in a good position,' Chartrand said. 'We have to look at, 'How do we take over something that's clearly in massive deficit (with) infrastructure that's falling apart?'' The FFMC highlighted an overall loss of $7.2 million in its 2024 annual report, shooting past the performance target of a $600,000 loss. It listed $34 million in loans payable. Meantime, Fisher River Cree Nation Chief David Crate calls the transformation an 'opportunity.' Approximately 150 on-reserve members commercially fish from Lake Winnipeg and sell their catches through the FFMC. Fisher River joins Poplar River and other communities off Lake Winnipeg, Lake Manitoba and Lake Winnipegosis in a coalition bidding on the FFMC. Métis and Indigenous fishers from Saskatchewan are in the group, Crate said. Monday Mornings The latest local business news and a lookahead to the coming week. 'We've got a very good proposal,' he added. 'The expertise that we bring to table, also, is something government will have to consider.' Saskatchewan and Manitoba representatives would form the FFMC's board; membership would consist of commercial fishers, Crate said. The coalition would keep the FFMC's current staff in place, he added. 'I couldn't get into details,' he said of how its debt would be managed. The FFMC also serves non-Indigenous communities. It sells fish around North America and Europe; it delivered 11.7 million kilograms in its 2024 calendar year, an annual report shows. Gabrielle PichéReporter Gabrielle Piché reports on business for the Free Press. She interned at the Free Press and worked for its sister outlet, Canstar Community News, before entering the business beat in 2021. Read more about Gabrielle. Every piece of reporting Gabrielle produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press's tradition, since 1872, of producing reliable independent journalism. Read more about Free Press's history and mandate, and learn how our newsroom operates. Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber. Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
The Citizen
09-07-2025
- Business
- The Citizen
Where Trump's tariffs will hurt most
Farmers and car manufacturers will feel the pain. Most miners get a free ride. The economy will take another hit. Ramaphosa must do 'whatever it takes' to protect SA's exports, but an alternative trade deal is 'highly unlikely' as the ANC 'will not concede on any' of the contentious issues. Picture: Shutterstock US President Donald Trump's 30% tariff of exports from SA to the US, effective from 1 August 2025, contains some notable exceptions. Minerals considered critical to the US – notably platinum group metals (PGMs), gold, chrome and coal – will attract 0% tariffs. That accounts for about half of what SA exports to the US, so excluding these commodities is a major relief. Where SA will really feel the pain is on the export of cars, already 25% (previously 0%), steel and aluminium, now 50% (previously 25% and 10%) and agricultural products at 30% (most products previously entered the US duty-free). That means SA wines in the US will be considerably more expensive. Donald MacKay, CEO of XA Global Trade Advisors, says the new tariffs could impact up to 0.5% of SA's GDP. 'This is not nothing, but it's not massive either. I don't think the sky is falling. That doesn't mean to say our economy will contract by that amount (0.5%), but that's the potential scale of the impact. 'If the equivalent tariffs were applied by Europe, which is a larger trading bloc for us, it would be a different conversation.' ALSO READ: Trump's new 30% tariff less about trade and more about power The US tariffs imposed on fruit appear counterintuitive as SA's fruit production season is not in sync with that of the US, meaning SA producers do not compete with US farmers in these products. 'In the agricultural sector, we do compete against Chile and Peru. If lower tariffs are implemented for Chile and Peru, it will provide them with a massive competitive advantage since importing from SA would be much more expensive,' says Gerhard Papenfus, CEO of the National Employers' Association of South Africa (Neasa). If Chile and Peru end up with lower duties than SA, this could really hurt, adds MacKay. 'But trade is fungible, so if Peru sells more oranges to America, their other markets will be deprived of citrus and we may be able to pick up some volume there. 'It might very well be worth meeting with countries in such positions to see if arrangements can be coordinated. It is clear that the most agile countries will win here.' ALSO READ: IMF warns all countries will be caught in crossfire of trade war MacKay says it appears Trump is using the tariff issue to apply maximum pressure on SA and other countries such as South Korea, Malaysia, Japan, and Kazakhstan) to move faster on their tariff offers. Trump has also threatened a further 10% duty on all countries aligning themselves with Brics. The US says the purpose of these duties is to reduce the trade deficit that it has with SA and is based on duties currently applicable on imports from the US. South Africa disputes this, saying the duty calculation is based on incorrect data. 'Our assumption is that the United States is utilising duties as a negotiating mechanism and that the issues up for negotiation are not only in the area of trade but may well include broader political issues,' adds Papenfus. ALSO READ: Will Trump's tariffs have major negative effect on South Africa's economy? Automotive hit will be hard, very hard Trump's decision to impose 30% tariffs on the export of vehicles, components, tyres and parts exported from SA to the US will kill any possible economic growth in our country. Dawie Roodt, chief economist of the Efficient Group, told the Motor Industry Staff Association (Misa) this week that Trump's figures are not based on actual figures, but everyone will feel the impact because it will hinder any economic growth. These tariffs take away any competitive edge SA enjoyed in the global market. Small retailers have already stopped manufacturing because it will not be feasible to continue with the new export tariffs or because of a reduced demand from US clients. 'We can now accept that Agoa [African Growth and Opportunity Act] is dead,' says Roodt. 'Under Agoa, more than 1 800 South African products and goods, including vehicles, components and parts, were exported to the US duty-free.' ALSO READ: Wait-and-see to Trump's hardline SA's official unemployment rate rose to 32.9% in the first quarter of 2025, the highest since the second quarter of 2024 (33.5%). 'The population has seen a steady increase year-on-year, with a growth rate of 1.33%. We live in a country where our population growth exceeds our economic growth. This makes job creation highly unlikely,' says Roodt. The retail motor industry is already struggling with the uncertainties of Trump's tariff increases, which commenced when he took office in January. Misa reports an increase in employers closing their doors, restructuring in terms of Section 189 of the Labour Relations Act, or embarking on short time. Tiekie Mocke, manager of Misa's legal department, says the reduced demand for exports has already forced one company cut its workweek from five to four days. ALSO READ: Ramaphosa disputes Trump's 30% tariff claim as 'not accurate' Ramaphosa must do 'whatever it takes' Martlé Keyter, Misa CEO for operations, says President Cyril Ramaphosa and his delegation need to do whatever it takes to restore South Africa's strained relationship with the US. This is not about who is right or wrong, but about what is in the best interest of South Africa. 'Our assumption is that the US is utilising duties as a negotiating mechanism and that the issues up for negotiation are not only in the area of trade but may well include broader political issues,' adds Papenfus. The 30% tariff imposed by the US may be punishment for SA's cosy relationships with US adversaries Russia, China and Iran. SA may also be singled out for retaliation over its case launched against Israel in the International Court of Justice. Papenfus recently returned to SA from a meeting with White House officials and says the ANC's race-based transformation agenda is another factor standing in the way of the normalisation of trade with the United States. 'The ANC will not concede on any of these issues, making it highly unlikely that an alternative trade deal will be concluded.' This article was republished from Moneyweb. Read the original here.
Yahoo
17-06-2025
- Business
- Yahoo
Cushman & Wakefield's Michelle MacKay on the advantages of board-to-CEO leaders
In today's CEO Daily: Diane Brady talks to Cushman & Wakefield's Michelle MacKay. The big story: Trump may or may not be trying to get a ceasefire in Iran. The markets: Resting easy. Analyst notes from Convera on the weakening dollar, Macquarie on Iran and the oil market, and Oxford Economics on business sentiment Plus: All the news and watercooler chat from Fortune. Good morning. Cushman & Wakefield's Michelle MacKay, Larry Culp of GE, Richard Dickson of The Gap, and Carol Tomé of UPS all have something in common: They were appointed CEO after serving on the boards of companies they now run. Such board-to-CEO transitions have become more common for multiple reasons, from the complexity of the business landscape to a desire for boards to instil seasoned leaders they know and trust. For MacKay, serving on three public boards after retirement stoked her ambitions to take on a CEO role. 'Those three years that I spent in board seats, with a little more time for myself, were probably the most important years of my career journey, which is ironic, because I wasn't working full time,' MacKay told Fortune in this week's Leadership Next podcast. 'I really hadn't stepped back in a number of years and reconsidered my own path.' Her background in finance and real estate were appealing at a time of declining revenues. When Cushman's then-CEO John Forrester asked MacKay if she'd consider becoming CFO of the company, she said no, instead agreeing to become COO in 2020 with a clear path to becoming CEO in July of 2023. 'It was a big challenge with a big brand and I had somebody who backed me from the onset. And I thought, 'You know what? We got one version here, one life. I'm just going to go for it.'' While tariffs, geopolitics and other issues continue to weigh on the global outlook for commercial real estate services, MacKay has led the firm to growth again. Board service gave her a holistic view of not only the company but also her career. With CEO turnover near record highs for much of the past year, more leaders may find a period of pause on boards inspires them to return to corporate leadership with fresh eyes and purpose. Said MacKay: 'Can one be too engaged? I don't think so.' You can listen to the podcast here on Apple or Spotify. More news CEO Daily via Diane Brady at This story was originally featured on
