Some of the cheap stuff uses "bimetal" jackets on the bullets, one of the metals being steel. My local range won't allow the use of any bullet that a magnet will stick to, their reasoning being that it can ricochet. They do allow steel cased ammo.
In terms of starting fires, it's the bi-metal jackets on the bullets that's the culprit. I hadn't thought about issues with mixing steel and brass cases in the scrap metal. I shoot at an indoor range, and he simply has separate buckets for steel and aluminum cases. Easy solution.
That company may not want to trust their customers to know which of the com-bloc ammo lines use bi-metal jackets as opposed to brass or copper jackets, so it's easier just to ban the ammo makers entirely. But ,as noted, I don't know what that has to do with Prvi Partisan (PPU). I've never encountered any steel ammo from them, and I regard their ammo as good quality.