In South Africa prices to rise again

South Africa: steel prices about to rise again.
Mathabo Le Roux, Johannesburg STEEL prices are set for another rise next month, bringing total increases in some product lines so far this year to 72%. ArcelorMittal SA said yesterday prices would go up 3%-7% next month on rising international prices. Long and flat products would rise an average of R500 a ton. Wire rod would rise 14%, or up to R1000 a ton, Mittal spokesman Tami Didiza said. The move was necessitated by rising input costs and was in line with international prices. Mittal's prices were still among the lowest, he said. The rises are likely to fuel inflation and squeeze consumers. The latest announcement follows monthly increases since the beginning of the year, some as high as 22%. Mittal has the edge on other producers, paying cost plus 3% for iron ore in terms of an evergreen agreement with Kumba Iron Ore. Mittal indicated it took this into account in calculating price increases. Mittal insisted it had departed from import-parity pricing and adopted a pricing model in which it compared its prices with a basket of prices in comparable markets abroad.