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Trade Winds bimonthly update volume 22

Prices on the rise as materials disappear, buckle in!!  Further steel price increases have been announced for November which will be the ninth consecutive increase this year exacerbated by low stocks countrywide.  South Africa is facing a steel shortage and explosive prices.

This trend has now moved over to the HDPE and Plastics sector and shortages of raw materials are being experienced by all the major manufacturers. Output as a general for HDPE polymers was 3,300 Tons per month which then dropped to 2,500 tons and as of the latest notice a further 15% drop is expected in production.

Various factors have been blamed both locally and internationally and Force Majure has been announced by many different industries who find themselves unable to perform to their pre-covid-19 service and production levels.

Output as a general for HDPE polymers was 3,300 Tons per month which then dropped to 2,500 tons and as of the latest notice a further 15% drop is expected in production.

Border updates, Chaos at Beitbridge over the past week, A motorist sadly passed away last week when a bakkie travelling south towards Musina from the Beitbridge border post between South Africa and Zimbabwe collided with a truck that had reportedly crossed into the oncoming lane to overtake gridlocked traffic heading north. The fatal collision once more demonstrates that traffic officials should be held culpable for allowing cars and trucks going north to drive three abreast on a single-lane highway.

Intervention seems to be on the cards after the build-up of traffic south of South Africa’s Beitbridge border with Zimbabwe has deteriorated to such an extent that some sources say it is the worst it has ever been this century.

This comes after northbound transporters stuck at the Limpopo crossing posted video footage on social media of the Transit Assistance Bureau clearly showing how trucks, cars and buses were milling around as if no traffic officials were present to establish order. The queue already stretched to the Baobab truck stop some six kilometres south of the border.

Suggestions were made to officials that the border should be opened up to clear the congestion and alleviate pressure on officials clearly incapable of coping with mounting volumes.

Since the suggestions were made, South Africa’s Beitbridge border into Zimbabwe has virtually transformed and a recorded 18km queue has been reduced down to less than 1km. The northbound queue has also has also been reduced to a single lane of traffic.

Last week at the Lebombo Border Crossing there was also a backlog as vehicles trying to cross into Mozambique from South Africa came to a standstill, chrome trucks, general cargo and the bakkie brigade loads jockeying for position whilst customs continue to take their time.

Call went out for the border to operate 24/7 and it seems that the cries were heard, transit times at the border have been substantially reduced with around 450 trucks cleared every 24 hours.

Meanwhile there is no certainty about what the border authorities have done but it’s obviously helping, bringing much-needed relief to private sector interests who often complain of extended standing time at the border.

The real test will come towards the end of the week as volume often picks up towards the weekend.

Finally, the opening of the Kazangula Bridge may happen before the end of the year, the bridge was initially supposed to be completed back in 2018 but due to various delays there is now a promising outlook that the opening will be soon, this comes after it was reported that ZRA had announced that it would be moving its regional office from Livingstone to the southern Zambian town from which the much-hyped linkage has taken its name.

Speaking to a Zambian news site, ZRA emphasised that the $70-billion bridge into Botswana would boost trade in Zambia’s southern province significantly, with tangible benefits for revenue collection.

Transporters will also not need much persuasion to divert traffic away from other north-south route border posts such as Beitbridge, considering the shambles it has been of late.

Zimbabwe mineral production increases, The Zimbabwe mining industry has managed to stay afloat with sustainable, profitable and balance production results whilst still fighting off the challenges faced within the mining sector.

Adding onto this, the mining sector has become quite optimistic about 2021 with the ever-improving commodity prices and a favourable local fiscal the sky is the limit for Zimbabwe in 2021.

90 percent of miner’s plan on upscaling production in the coming year with the other 10 percent expecting production to remain the same. Gold output is expected to increase around 30% in the coming year, followed by platinum and coal spurred by world commodity prices that continue to move upwards. 

Terrorism crossing the border!  The Islamist terrorist group operating in the Cabo Delgado region of Mozambique have made their away across the border to Tanzania, where it is reported 20 people were beheaded.

The attack was carried out against the village of Kitaya, in Mtwara province, near the border with the Cabo Delgado district of Palma.

According to military sources cited by the newsheet, the terrorists entered Tanzania by sea, going up the Rovuma river that forms the border between Mozambique and Tanzania.

The raiders burnt down houses, destroyed an armoured vehicle and stole money and military equipment. The terrorist network that calls itself “Islamic State” claimed responsibility for the attack, and reported three Tanzanian soldiers had been killed in the ensuing battle that followed.

“Rain does not fall on one roof alone”

 

 

HDPE Price Increase Notice

Dear Valued Customer,

Please click on the following link for the latest HDPE Price Increase Notice.

Kind Regards,

Ropa Mhlanga
Operations Director – Southern African Region