The South African Competition Commission has announced the receipt of a Corporate Leniency Policy (CLP), which confirms the existence of a cartel among several domestic steelmakers for certain products, including rebar, wire rod, sections, roofing bolts and fencing products.
According to the information submitted by the CLP applicant, the involved parties agreed on fixed prices, exchanged price lists and also fixed discounts. In addition, the domestic steel producing competitors also allocated customers by agreeing on which customers to supply for various long steel products, and shared commercially sensitive information through the South African Iron and Steel Institute (SAISI).
In addition, the commission has determined that domestic steel producers were also involved in collusive agreements and arrangements regarding pricing and purchasing of scrap. These include agreements on a standard pricing formula to be used in determining the purchase price of scrap and the allocation of scrap metal among the major consumers.