ARCELORMITTAL SA has undertaken to remove import parity pricing with immediate effect, in accordance with an agreement on fair pricing principles reached with the Department of Trade and Industry.The agreement reached about a month ago has been long in the making and was strengthened by a settlement ArcelorMittal SA reached with the Competition Commission this week. This will require the steel producer to pay an administrative penalty of R1.5bn for its anticompetitive pricing policies.READ THIS: It’s vital to speak up in review of duties on steelThe government has wanted to target import parity pricing in terms of which ArcelorMittal SA based its domestic prices on international steel prices. This has been blamed for high input prices and for harming the competitiveness of the downstream industry.The international steel price has slumped due to a glut in supply, but the new pricing agreement will ensure that domestic prices do not rise on an import parity basis when the internationa...
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