COMPANIES
Mittal Steel won't hike prices
Posted Fri, 08 Apr 2005
Mittal Steel South Africa will not increase prices for May and June although indicators show that is justifiable, the company said on Thursday.
"We believe this decision will go a long way in benefiting our domestic market," said Davinder Chugh, chief executive officer of the company formerly known as Iscor.
He said a recent study on international steel price trends showed a five percent hike was justified.
Despite the indicators, the rand's recent weakening and the rise in steel prices in some markets, Mittal Steel SA decided not increase its prices, Chugh said in a statement.
"This is significant in view of massive price increases for raw materials like coking coal and their cost implication," he said.
Chugh's company reduced its prices for most of its flat steel products in January by eight percent, and its colour coated steel by an extra four percent in February.
"A general price reduction of five percent was applicable on the majority of the
company's long steel products in February 2005," Chugh said.
Sapa
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