• Steel Market Insider

    We strive to let you one step ahead of the market

Steel News
Advanced search
    Key words
  • Search By
  • Date
  • Classification
  • Region
Advanced search

Ruling in Mittal SA Competition Commission tribunal expected after Easter recess

  • A
  • A
  • A
Mittal Steel SA could face closure in the long term if they are to change their pricing model. Mittal Steel SA is currently facing a case at the South African Competition Commission Tribunal on their import pricing model. The case was brought to the Competition Commission by some local steelmakers saying their import parity model was unfair. The deputy chairman of the financial consulting company CRA International and a specialist in competition law, Mike Walker was called as a final witness in the tribunal. "I don't propose that Mittal shut down immediately. It has its assets and should continue using them," said Walker. He tried to prove that the pricing structure was not extraordinarily high. He said that if it is viewed historically, Mittal SA will not be able to earn enough during the steel purchasing cycle in order to recover its weighted average capital cost (WACC). The local companies who brought the case to the commission disputes this saying they will be faced with a bleak future if Mittal continues with their current pricing. The commission is expected to make its ruling after the current Easter break of about 2 weeks. (Apr. 16)
News Date 16 Apr 2006 11:36:19 reported by Customer service

Malaysian steel sector urges for higher anti-dumpi...
Government policies
04 Feb 2016 18:55
New EU taxes restrict access against Russian steel...
Government policies
03 Feb 2016 17:11
Mexico to increase import tariffs will not enough ...
Government policies
03 Feb 2016 09:29
EEC to impose anti-dumping duties on seamless pipe...
Government policies
29 Jan 2016 12:29
EU plans to impose the import tariffs on cold roll...
Government policies
29 Jan 2016 12:19
Most Popular