[miningmx.com] — THE Competition Commission has referred a collusion
case against ArcelorMittal SA (Amsa) and Highveld Steel and Vanadium to the
Competition Tribunal, asking for a penalty of 10% of annual turnover against both
companies.
This relates to price fixing and market allocation conduct in respect of flat steel
products, the Commission said on Monday.
It followed a complaint in early 2008, alleging that Amsa 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,’ read a Competition Commission statement.
“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.’
The Commission said 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.
“The Commission has asked the Tribunal to impose a penalty of 10% of annual
turnover on each of the steel producers.’
Approached for comment, Amsa spokesman Themba Hlengani said the company has
“noted the Competition Commission’s decision to refer the matter to the Tribunal for
adjudication’.
“We will study the referral papers and comment thereafter.’
At the close of trading on Monday, Amsa’s shares were down 1.89% at R54.90
