South African producers may benefit from rising steel prices in US

South African producers may benefit from rising steel prices in US

It is talked in the market that, South African steel producers Iscor and Highveld Steel and Vanadium may increase their revenue due to strong Rand and rising steel prices in US, as the exports of the two mills are going into NAFTA countries, including US, Mexico and Canada. In 2003, the exports of Iscor into NAFTA countries constituted the 8% of the total exports of the company. In the six month period ending December 2003, 3% of the total exports of Iscor went to US with the volume of 1.6 million tons. Likewise, very small amount of Highveld's exports are going to US. However, that the prices are high in US and the South African producers increase their exports to US may result in price increases by South African producers. Hence, South African producers may increase their revenue. Meanwhile, the producers should be careful with the anti-dumping measures while increasing exports. In this situation, Iscor and Highveld may consider hiking their prices however the increases should be within the levels that are acceptable for local consumers.