Cape Gate, one of four metal traders raided by the Competition Commission on Friday, has denied any wrongdoing and indicated it will initiate urgent proceedings to set aside the search warrants obtained by the commission, reports TimesLIVE.

The commission said it had reasonable grounds to suspect that Scaw SA, Cape Gate, Shaurya Steel, trading as Force Steels, and Unica Iron and Steel have engaged in fixing the purchase price of shredded or processed scrap metal.

The commission obtained a search warrant from the Gauteng High Court (Pretoria) authorising it to enter and search the premises of these companies and seize information that had a bearing on the investigation.

The company said there was no need for a search operation, as Cape Gate has always been open and available to the commission.

Cape Gate said it believed the search warrant was unlawful, and it intends to initiate urgent proceedings to set it aside.

The company said it had a right to ask for a reconsideration of the warrant, given that the order was granted in its absence.

It also said there was a clear obligation on the commission to fully disclose all relevant facts to the court. 

Cape Gate believed the commission failed to make full disclosure as required.

In relation to the October 2025 Competition Tribunal decision regarding scrap purchasing between 2000 and 2008, Cape Gate maintained its stance that the tribunal’s judgment was incorrect and there had not been a contravention of the Competition Act. 

In that judgment, the tribunal found that Cape Gate contravened the act by participating in price-fixing in the market for the purchase of scrap metal in SA.

Full TimesLIVE report