According to Reuters, ArcelorMittal South Africa will increase the prices of its steel products from April to stabilise the business after heavy losses due to competition from cheap imports.
"The global economic developments and the sustainability of the steel industry are one of the reasons which led the company to increase prices following its monthly price review," says the steelmaker.
The company, majority-owned by ArcelorMittal, said it would increase the prices of hot rolled coil by 8% on average and plate by 11%, among other products.
Last year South Africa placed a 10% tariff on imported steel and ArcelorMittal, which had been hurt by cheap steel from China. It was said in January that the government was increasing duties further.
“ArcelorMittal South Africa is focused on the local steel market, where it is still the largest player.”
The company, which is reviewing its loss-making Saldanha plant near Cape Town, said a 20% jump in iron ore prices over the last month influenced its decision, as well as the further hike in South Africa's electricity costs.
"The challenges faced by ArcelorMittal South Africa and the local steel industry are still persisting, and they are putting the company and the steel sector in a difficult position," it said.