The South African Competition Commission has announced that it will establish a new market inquiry into the South African steel industry to examine whether or not there are any features or a combination of features in its value chain that impede, distort, or restrict competition in the steel industry.
The inquiry will be confined to raw materials, specifically iron ore and coking coal, and to upstream steel production.
With respect to iron ore, the inquiry will seek to foster effective competition, while, in terms of coking coal, the inquiry will focus on addressing supply constraints and the costs of procuring this input.
In addition, the inquiry will focus on measures to promote the expansion of steel producers, challenges faced by steel producers, and factors surrounding the closure of some steel mills, and price mechanisms.