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Johannesburg - The world's biggest steel maker, ArcelorMittal, has rejected accusations made by the National Union of Metal Workers of South Africa (Numsa) that it had increased its prices, saying product prices have in fact declined by between 40 and 50%.
Numsa claimed that ArcelorMittal had raised the prices of tin-plate by 60% in March, from the previous year-on-year period.
ArcelorMittal however said that the 69-78% increase in tin-plate prices reflects the significant weakening of the rand/US dollar exchange rate from about R7/US$ to R10/US$ and an approximate net rise in international tin-plate prices of about 25% over the past 12 months.
In April, the group expected the rand to strengthen, which would see ArcelorMittal attain lower revenue figures in rand terms for the steel it exported.
Tin-plate is primarily used for the manufacture of tin cans, which can be found holding liquids or food products in store shelves.
Late Monday afternoon, the Rand/US Dollar exchange rate was R9.07/US$.
Looking ahead, ArcelorMittal said that it would review prices on tin-plate by no later than October this year, shorter than its traditional annual revisions.
ArcelorMittal closed 1.16% lower at 8 253c/share on Monday afternoon.