The South African Competition Commission has initiated an investigation into alleged price fixing and exclusive dealing in the domestic steel industry. The companies, among others, under investigation include Cape Town-based steel producer Cape Town Iron and Steel Works, a wholly-owned subsidiary of Murray and Roberts, and Highveld Steel and Vanadium Corporation, a subsidiary of the Russian steel producing and mining company Evraz Group.
The commission has initiated this investigation based on concerns raised by various shareholders regarding pricing policies in the steel industry. The preliminary research has shown that local customers pay prices charged at the import parity price level regardless of the fact that South Africa is a net exporting country. The current investigation is to determine whether or not steelmakers charge high prices due to collusive conduct.
Moreover, the commission has received a complaint alleging that ArcelorMittal Steel and Highveld Steel and Vanadium Corporation have adjusted their prices for long and flat products around the same time and with similar percentage increases. The complaint alleges that this is suggestive of collaboration between the two companies.