ArcelorMittal South Africa (ArcelorMittal SA), a subsidiary of the world's largest steel producer ArcelorMittal, will raise its domestic steel prices in August for the second month in succession in line with international market prices despite the sustained strength of the rand. ArcelorMittal raised its steel products for the first time in July since cutting them by more than 60 percent from September last year due to the global economic downturn.
Accordingly, the company is considering increasing its flat steel prices by between three to four percent and its long steel prices by four percent in August.
The company said in a notice to its customers, "The base price for flat steel products will rise by ZAR 200/mt (US$25.89/mt) on average, while the base price for long steel products will rise on average by ZAR 250/mt (US$32.29/mt)."
"The price increases reflect a continuation of the positive price momentum we are witnessing in the baskets of overseas prices that we track for our products," the company added.
Under the terms of the agreement between the company and its customers, ArcelorMittal SA notifies its customers a month ahead as regards price rises but does not provide the same notice when prices remain unchanged or fall.
US$1 = ZAR 7.74