Scrap Dealers Set for October Strike as Price Dispute With Steel Firms Escalates

Scrap metal dealers across Nigeria are preparing to suspend supplies to iron and steel companies from October 1 following a dispute over pricing and other issues affecting their businesses.

The National Association of Scrap and Waste Dealers Employers of Nigeria (NASWDEN) said the planned industrial action will initially run until October 15, with the possibility of an extension if an agreement is not reached with the affected companies.

The association said one of its major concerns is the sudden reduction of scrap-metal purchase prices by some steel companies. According to NASWDEN, dealers who have already purchased and transported scrap at previously agreed prices can suffer losses of between ₦3 million and ₦6 million on a single truckload when prices are reduced without adequate notice.

NASWDEN also raised concerns over deductions reportedly imposed by some companies under the description of “extra dust”. The association said deductions ranging from one to five per cent add to the financial pressure on dealers.

Another issue raised by the group is what it described as increasing involvement of foreign operators in Nigeria’s scrap-metal trade. NASWDEN alleged that some foreign operators have established dumpsites and collection centres in different parts of the country, which it says is making competition more difficult for local dealers.

The association further expressed concern about the purchase of scrap from unregistered or uncertified dealers and agents. It said stronger verification is needed to ensure that materials entering the steel industry are sourced legitimately and to reduce the risk of vandalised public or private property entering the market.

NASWDEN has directed its members to comply with the planned suspension of supplies but urged them to remain peaceful and avoid confrontation, violence or destruction of property.

The association said it would prefer to resolve the dispute through dialogue and negotiations with iron and steel companies. It has also appealed to government agencies and other stakeholders in the steel sector to intervene before the planned strike begins.

If no satisfactory agreement is reached by October 15, the dealers say the industrial action could continue beyond the initial two-week period.

The development could put further pressure on Nigeria’s scrap-metal and steel supply chain, making the outcome of negotiations between the dealers, steel companies and relevant authorities important for the industry in the coming weeks.