The Competition Tribunal (“Tribunal”) has dismissed an application for interim relief brought by steel producers, Cape Gate (Pty) Ltd (“Cape Gate”) and Scaw South Africa (Pty) Ltd (“Scaw”) against ArcelorMittal South Africa Ltd (“AMSA”).
Cape Gate and Scaw alleged that AMSA was engaging in exclusionary conduct in contravention of the Competition Act, specifically section 8(1)(d)(iv) (predatory pricing) and, alternatively, section 8(1)(c). The firms claimed that, following a recent financial bailout from government, AMSA had engaged in predatory pricing by announcing significant price cuts on certain long steel products on 14 April 2025. The firms argued that the price cuts occurred when the rest of the industry was increasing prices due to a chronic shortage of scrap metal - and that AMSA was intentionally sacrificing profits in the short term to weaken or exclude rivals in order to secure higher profits in the longer term, due to reduced rivalry.
Cape Gate and Scaw asked the Tribunal to:
- interdict AMSA from engaging in predatory pricing and charging prices below those charged on 14 April 2025 for long steel products; and
- direct AMSA to charge prices not less than those that pertained on 14 April 2025.
AMSA opposed the application. It argued, among others, that there was no material reduction in the prices charged before and after 14 April 2025 that could amount to predatory pricing. AMSA also argued that Cape Gate and Scaw failed to: establish a prima facie case of predatory pricing or exclusionary conduct; demonstrate that interim relief was needed to prevent serious or irreparable damage to them; show that the balance of convenience favoured the granting of such relief; and that it would be in the interests of justice to grant interim relief.
After a hearing and considering the submissions from all parties, the Tribunal has dismissed the application for interim relief. The Tribunal’s full reasons for its decision will be published in due course.