South Africa’s competition authority, the Competition Commission, is currently investigating ArcelorMittal (South Africa) for “excessive pricing” of tinplate and flat steel, the Johannesburg-listed steel maker disclosed on Friday.
“Joined to this investigation is an investigation into alleged excessive pricing arising from the iron ore surcharge introduced by ArcelorMittal South Africa for the period May 2010 to July 2010,” Dr Hans Rosenstock, ArcelorMittal’s acting CEO, said in a statement.
He added that the firm, which is Africa’s biggest steel maker, is currently co-operating completely with the competition authorities and continues to provide documentation whenever asked to do so.
The firm said headline earnings amounted to 81 cents a share for the quarter to March this year from a loss of 67 cents during the same comparable period last year.
In addition, steel sales volumes gained 5 percent in the first quarter of this year compared to the previous comparable reporting period.
ArcelorMittal (South Africa) said during the second quarter of this year the “reline of the blast furnace in Newcastle”, KwaZulu Natal, South Africa, will start.
“Stocks have been put in place to assure that the domestic demand can be supplied during the project duration of approximately four months,” the company said in a statement. (VENTURES AFRICA)
