ArcelorMittal South Africa, the South African subsidiary of the world's largest steelmaker ArcelorMittal, is to cut its base prices for long and flat steel products by between 12 and 16 percent.
According to a recent letter sent to customers, the producer has replaced its previous notice of late October, stating that new price lists will be released soon. In late October, the mill had indicated that it would roll over its November prices into December.
The price reduction is based on the downtrend in international prices and weakening demand, and has been amplified by the recent appreciation of the rand against the US dollar.
The December cut would be the third successive monthly price reduction since October, when the company made its first downward adjustment for the year and reduced its prices by an average of five percent. It also follows the ten percent cut announced as from November 1.