NEWS ANALYSIS: Arcelor delighted new pricing principles suit steel industry
ArcelorMittal SA’s new CEO, Wim de Klerk, says the company’s new pricing policy for sales of flat steel products, agreed with the government, does not have precedent elsewhere in the world. "Not as far as we are aware. These pricing principles were developed in consultation with government in the best interest of the local steel industry," he says. This comes as SA’s largest steel maker has finally acquiesced to long-standing government demands for regulated pricing and, therefore, a cap on earnings, amid a crisis in both the global and domestic steel industries. "This is the intended effect of the pricing principles," De Klerk told Business Day. "Pricing based on an import-weighted basket and a cap on ArcelorMittal SA’s earnings will assist in ensuring that competitive pricing can be passed on to the downstream industry." ArcelorMittal SA has agreed to this as part of a holistic solution for the sustainability of the industry, and which will contribute to economic growth, says De K...
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