December 03, 2008

ArcelorMittal South Africa to raise prices by 18% to 19%

Bloomberg reported that ArcelorMittal South Africa planning to raise its prices by an average of 18% to 19% in May, the fourth successive monthly increase. As per report, ArcelorMittal South Africa lifted average prices as much as 10% in February, 12% in March and plans a 15% to 25% increase in April.

The base price of all the company’s flat and long products would increase on average by ZAR 1,200 per tonne, except for two products the galvanized 0.3mmx762mm, which would increase by ZAR 2,366 per tonne and galvanized 0.3mmx914mm, which would go up by ZAR 2,134 per tonne.

Mr Tami Didiza a spokesman for ArcelorMittal South Africa said that “We have in the past month seen continued upward movement of steel prices on world markets.” He added that there is a substantial gap between international and local prices.

According to Metal Bulletin, while ArcelorMittal South Africa charges USD 880 a tonne for benchmark hot rolled coil, prices in the US are USD 920 a tonne and as much as USD 1,000 a tonne in Europe.

Incidentally ArcelorMittal South Africa is appealing a ZAR 691.8 million (USD 86 million) penalty imposed by local antitrust regulators for excessive pricing.