ArcelorMittal’s record R1.5bn fine

The settlement agreement approved by the Tribunal not only required the steel giant pay an administrative penalty but required it make public compensation for price discrimination.

The largest single settlement amount imposed by the Tribunal to date is a R1,5bn fine against ArcelorMittal. 

ArcelorMittal admitted that it engaged in collusion with CISCO, Scaw and Cape Gate by fixing prices and discounts, allocating customers and sharing commercially sensitive information in the market for the manufacture of long steel products, and that it fixed the purchased price of scrap metal with Columbus Steel, Cape Gate and Scaw.

The pricing remedy, however, did not contain an admission that ArcelorMittal had overpriced on flat steel product. 

In terms of the agreement ArcelorMittal undertook that for a period of five years it would limit its EBIT (earnings before interest and tax) margin to 10% for flat steel products sold in South. It also committed to R4.64bn capital expenditure over the same period.

Top penalties imposed in the last year.