The Ukrainian steelmaker ArcelorMittal Kriviy Rih, an affiliate of steel giant ArcelorMittal, starting from April 2009 is introducing a new system of discounts in the range of 0.5-3.0 percent for A400C and A500C grade rebar prices in the domestic market, with discounts depending on the month of acquisition and on the amount acquired in the previous month.
Accordingly, if rebar acquisitions in March total 2,000- 3,999 mt, the discount in April will amount to 0.5 percent. For the same volume of sales in April, the discount in May will reach one percent; meanwhile, for the same volume again in May, the discount in June will reach 1.5 percent.
On the other hand, if rebar acquisitions total 4,000-6,000 mt in March, the discount in April will amount to one percent. For the same volume of sales in April, the discount in May will reach two percent; meanwhile, for the same volume again in May, the discount in June will reach three percent.
"Due to the new discount system and considering the interests of our clients, we expect that we will be able to support our permanent buyers and more efficiently plan sales of rebar in the medium-term perspective, and thus increase the output of the product in question," ArcelorMittal Kriviy Rih's head of sales Vladimir Shalimov stated.
Meanwhile, the Ukrainian Association of Metal Traders considers ArcelorMittal Kriviy Rih's new system of discounts a bit belated, as currently nobody is buying sizeable amounts of steel products, and says that it would be more reasonable if ArcelorMittal Kriviy Rih decreased its prices instead of implementing new discount systems.