THEE - The Competition Commission - Steel producers to face collusion charges in
JSE
THEE
THEE - The Competition Commission - Steel producers to face collusion charges in
tribunal
MEDIA RELEASE
02 APRIL 2012
STEEL PRODUCERS TO FACE COLLUSION CHARGES IN TRIBUNAL
The Commission referred a collusion case against ArcelorMittal South Africa Ltd
("Mittal") and Highveld Steel and Vanadium Corporation Ltd ("Highveld") to the
Tribunal for adjudication on 30 March 2012. This relates to price fixing and
market allocation conduct in respect of flat steel products.
The Commission`s investigation followed a complaint in early 2008 alleging that
Mittal and Highveld adjusted their prices for steel products around the same
time and with similar percentage increases.
Evidence before the Commission indicates that the steel producers engaged in
concerted practices or had understandings that Highveld would follow Mittal`s
lead on the pricing mechanism and changes in pricing, including discounts and
transport tariffs.
The Commission`s investigation also found that the steel producers divided the
markets by specific types of goods, maintaining market shares and allocating
supply quotas for exports. The arrangements regarding exports included
agreements with the European steel producers association Eurofer.
This conduct was maintained through information exchanges on sales volumes,
which allowed them to monitor and maintain market share and prices. The
understandings were facilitated through meetings and information exchanges
through the steel industry association, the South African Iron and Steel
Institute ("SAISI").
The Commission has asked the Tribunal to impose a penalty of 10 percentage of
annual turnover on each of the steel producers.
ENDS
For more info:
Molebogeng Taunyane, External Communication Coordinator
012 394 3289/ 082 646 8663/ molebogengt@compcom.co.za
Date: 02/04/2012 11:58:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
