Dispute puts steel prices up

ARCELORMITTAL South Africa will raise prices by about R600 per tonne in May to ease the impact of a dispute over iron ore supplies, it said yesterday.

ARCELORMITTAL South Africa will raise prices by about R600 per tonne in May to ease the impact of a dispute over iron ore supplies, it said yesterday.

The firm said it might get iron ore from other domestic suppliers while its dispute with Kumba Iron Ore remained unresolved and also warned of further price increases due to fluctuations in international prices.

Kumba, a unit of global miner Anglo American Plc, last month terminated a deal which allowed the steelmaker to receive ore from Kumba at a discount and said it would sell its commodity to ArcelorMittal South Africa at market rates from March 1.

ArcelorMittal SA's chief executive Nonkululeko Nyembezi-Heita said that while the company insisted the long-term preferential supply agreement with Kumba was still valid, it would need to hike prices since resolving the dispute may take "an extended period" of more than three months.

The company said the surcharge would be refunded to customers if ArcelorMittal succeeded in its claims. - Reuters

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