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Monday, November 2, 2009.

From Creamer Media in Johannesburg, I'm Shannon de Ryhove.

Making headlines today:

Steel producer ArcelorMittal South Africa has cut some of its prices for November, in line with international price trends and the rand/dollar exchange rate. The cuts are the first to be instituted since the group's prices started recovering again in July, following a protracted period of cutbacks.

The group slashed some of its prices by nearly 60% between August 2008 and June 2009 as demand fell and customers destocked across the world. But since July 1, prices on a range of its products have been increasing steadily.

However, as from November 1, 2009, ArcelorMittal's rebar and wire rod prices will fall by around 3,5%, while the balance of its long-steel prices will remain unchanged.

The group sets its prices after analysing domestic selling prices in four markets, the US, Germany, Brazil and China, and then adjusting these to a view on the currency for the forthcoming month.

The Kagiso purchasing managers index (PMI) improved to 47,6 points in October, up from 45,9 points in September. Kagiso Securities head of fixed income Andre Coetzee says that South Africa's manufacturing output is moving back towards expansionary territory.

While the domestic manufacturing sector continues to lag international developments, a sustained improvement in global prospects should, in the foreseeable future, contribute to a return to growth for the local manufacturing sector.

The local PMI, which is a key measure of manufacturing activity, has remained below the neutral 50 level since May 2008, while the global PMI has been above this level since August this year.

Also making headlines:

The World Trade Organisation says that the use of anti-dumping measures jumped in the year to June.
State-owned water utility Rand Water will have a funding shortfall of R5-billion over the period between 2010 and 2015.
Zambia's fuel shortages may cut its maize output.
And, Ethiopia will develop biofuels to cut down on oil imports.

That's a round up of news making headlines today. For more on these and other stories please visit engineeringnews.co.za.