Steel Pricing in South Africa: Competition history and current concerns
Steel Pricing in South Africa: Competition history and current concerns
Steel Pricing in South Africa: Competition history and current concerns
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LNM acquisition of Iscor• LMN needed to notify the <strong>Competition</strong> Commission of a mergerwith Iscor <strong>in</strong> 2004 because it planned to <strong>in</strong>crease itssharehold<strong>in</strong>g <strong>in</strong> Iscor to above 50% (was 47.23%). The Tribunalapproved this unconditionally because it would not give rise toany substantial lessen<strong>in</strong>g of competition.• At this time the DTI had an agreement with LNM that it would:- Conclude a steel pric<strong>in</strong>g agreement with the DTI that would replaceexist<strong>in</strong>g import parity pric<strong>in</strong>g (IPP) with a susta<strong>in</strong>able, developmentalpric<strong>in</strong>g model that would raise the volumes of downstream steelbeneficiated <strong>in</strong> <strong>South</strong> <strong>Africa</strong> for both the export <strong>and</strong> domestic market <strong>in</strong>compliance with WTO (World Trade Organisation) Rules for the <strong>South</strong><strong>Africa</strong>n <strong>Steel</strong> <strong>in</strong>dustry- Increase <strong>in</strong>vestment <strong>in</strong> liquid steel capacity from 6 million tons (Mt) to 9Mt(<strong>in</strong>clud<strong>in</strong>g expansion of Saldanha <strong>Steel</strong> capacity to 2Mt from 1.2Mt).
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