Cartel in South Africa steel industry ‘exposed’

South Africa. Price fixing scandal rocks steel industry.
The Competition Commission has announced that steel prices in South Africa are being manipulated by a cartel. The revelation was made a short while after the JSE closed for trade. The commission says it has confirmation that some of the country's major steel producers are fixing prices. Some of these companies are listed on the stock exchange. The steel sector is crucial to the country's multibillion rand infrastructure development programme, including the 2010 stadia. Construction companies are coming under increasing pressure due to ever rising steel prices. Three weeks ago, the Competition Commission raided some of the country's biggest and most well-known steel makers. They include Iron and Steel Works - a subsidiary of Murray and Roberts - Highveld Steel and the South African Iron and Steel Institute. One of the companies has confessed that a cartel did exist to fix prices and discounts. Furthermore, they agreed who they would supply and shared sensitive information. The company has not been identified, but by coming forward they are hoping to escape prosecution. The commission began its investigation after several complaints about pricing practices in the sector.