http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.12Change: 0.06
R/$ = 10.51Change: 0.02
Au 1308.30 $/ozChange: 9.42
Pt 1479.50 $/ozChange: 6.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jan 29, 2009

ArcelorMittal to hold SA prices steady into February, after recent steep falls

Back
Africa|ArcelorMittal South Africa|Africa|Flat-steel Base Prices|Flat-steel Items|Steel|Steel Prices|Steel Producer|Sven Lunsche
Africa||Africa|Steel||
africa-company|arcelormittal-south-africa|africa|flatsteel-base-prices|flat-steel-items|steel|steel-prices|steel-producer|sven-lunsche
© Reuse this



Africa’s largest steel producer ArcelorMittal South Africa, would roll-over its January prices into February, having reduced prices consistently between October and January in line with movements in international steel prices and the South African currency.

Corporate communications manager Sven Lunsche said that prices had dropped by between 35% and 40% on average over the last four months.

The company, which last year also announced that it would curtail production by 30%, in light of slowing global and domestic demand, sent notices to customers this week informing them of the decision.

The letter confirmed that flat and long prices for orders confirmed for delivery from February 1 would remain unchanged from January 2009, with the exception of two flat-steel items, the price of which would fall by R500 a ton.

The two items in question were PL140 galvanised 762 mm by 0,3 mm and PL140 galvanised 914 mm by 0,3 mm ISQ550 Z100 R500.

In December, the company cut a further R1 000/t on average off its long- and flat-steel base prices, which resulted in average declines of between 12% and 16% over the various grades that it produces.

The reduction was based on the decline in international prices and amplified domestically by the rally in the value of the rand against the US dollar in the latter months of 2008.

The decision to hold prices into February was probably attributed mostly to the weakening of the rand against the greenback since late December. The rand has lost nearly 5% of its value against the dollar since January 1.

The December cut was the third successive monthly price reduction since October, when the company made its first cut for the year and reduced its prices by an average of 5%. It also followed on from the 10% cut announced as from November 1.

Prior to that, there had been a series of successive price increases up until August, which had led to something of an outcry from steel consumers and placed the spotlight back on to the company’s controversial pricing policies.

In fact, between January and August there had been seven upward revisions to the price of hot-rolled coil, which surged by over 100%. Similarly, there had been six increases in the price of wire rod.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
 
Latest News
Updated 3 hours ago The head of economics and trade at the Delegation of the European Union (EU) in Pretoria has acknowledged South Africa’s trade negotiators won important concessions in the long-running Economic Partnership Agreement (EPA) trade talks. But he says it was South...
Responding in writing to a recent Parliamentary question by the Democratic Alliance, Transport Minister Dipuo Peters has provided an update for each of the country’s 13 bus-rapid transport (BRT) systems, noting that each network is at a different stage of...
The South African Real Estate Investment Trust (SA Reit) Association has called on the Competition Commission to intervene in undesirable exclusivity clauses in retail leases that were allowing retailers to stifle market share. The association’s members, which...
More
 
 
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
GARYN RAPSON Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will open the door for court battles to determine who will be held liable for the remediation
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks