Johannesburg - ArcelorMittal SA [JSE:ACL], the South African arm of the world's largest steel producer, on Tuesday confirmed that it was lowering the price for flat steel products as well as the Sishen Surcharge from
July.
The company confirmed that its prices for flat steel products would decrease between R190/ton and R715/ton, depending on the product type, while prices for some of its long steel products will decline between R300/ton and R715/ton, depending on the product.
ArcelorMittal also informed its customers that due to modest decreases in international iron ore pricing, the Sishen surcharge will reduce by R188/ton, resulting in the surcharge now amounting to R525/ton.
ArcelorMittal last month introduced a surcharge to partially mitigate the additional iron ore cost arising out of its dispute with Kumba Iron Ore [JSE:KIO].
The steel producer was advised earlier this year that it would no longer be receiving iron ore from Sishen Iron Ore Company, a Kumba subsidiary.
In terms of an agreement signed in 2001, ArcelorMittal received 6.25 million tons of iron ore per annum from SIOC at cost plus 3% basis.
The issue is currently under arbitration.
- I-Net Bridge