The producer said in a media release that Tuesday’s announcement by its South African unit that it would reduce prices, reflected specific currency development and local price mechanisms.
On Tuesday, ArcelorMittal South Africa announced that it would cut the price of both hot-rolled coil (HRC) and wire rod by 5% from October.
ArcelorMittal added that it would maintain its third quarter pricing levels into the fourth quarter, globally.
It was also negotiating 2009 contracts for automotive, packaging and home appliance customers and was making good progress in agreeing “substantial” price increases, the company said in the statement.
It added that it would, in the case of seasonal market weakness, adapt production to maintain stable pricing.
In South Africa, the price of HRC and wire rod would decline from record levels, after the price of HRC had been subject to seven consecutive increases before September, when the price remained stable.
The price of wire rod had had increased six times before September.