South African Iscor approaches the over pricing issue

South African Iscor approaches the over pricing issue

According to market reports, South African steel maker held a meeting last week with steel consuming companies regarding the issue on overcharged steel prices which are believed to be causing inactivity in the industry. During last year fluctuations in Rand against US Dollar affected steel prices, as they are in Dollars, bringing them up by almost 20% throughout the year and the companies in relation with the steel industry. In such circumstances, it was pretty difficult for those companies to make future plans and keep their current workforce as well. With this meeting Iscor is planning to stabilize steel prices by decontaminating from rapid changes in prices, in order to enable the industry to make bright turnaround. During the meeting, enhancing competitiveness was among topics discussed. Iscor, changing its monopolist attitude towards the industry decided to hold this meeting despite a ruling by the Competition Commission which states that prices set by Iscor are fair on the contrary to claims for being too high. The commission started the investigation on Iscor's steel prices upon complaints from several companies, including the ones from the mining industry.