ArcelorMittal South Africa, the largest steel producer in South Africa, has announced its intention to cut the price of both hot rolled coil (HRC) and wire rod by five percent as of October 2008. This price cut will be the first the company will perform since the beginning of the year.
Accordingly, in October 2008 the price for HRC will decline from its current level of ZAR 8,485/mt ($1,085/mt) to ZAR 7,997/mt ($1,022/mt), while the price of wire rod will decrease from ZAR 7,808/mt ($998/mt) to ZAR 7,418/mt ($948/mt).
Since ArcelorMittal South Africa's last price cut in September 2007, the price for HRC saw seven upward revisions and increased by over 100 percent year on year. Similarly, prior to September 2008, there had been six increases in the price of wire rod.