July 1 (Bloomberg) -- ArcelorMittal South Africa Ltd., facing a steel tariff probe by antitrust regulators, will raise prices by 3 to 14 percent in August and expects further increases in international charges.

Long and flat products will gain by an average of 500 rand ($63) a metric ton, the Vanderbijlpark, South Africa-based company said today in an e-mailed statement. Two higher-value products will jump by twice that amount, said spokesman Tami Didiza.

The latest increase will take benchmark hot-rolled coil to $1,080 a ton, said the company, 52 percent owned by ArcelorMittal, the world's biggest steelmaker. That compares with $1,200 a ton in the North American market and $1,260 in Europe, it added.

Africa's biggest steelmaker is fighting a record penalty after South African antitrust authorities found it guilty of ``excessive pricing'' last year. Regulators last month launched a new investigation into alleged price fixing by ArcelorMittal South Africa and rivals including Highveld Steel & Vanadium Ltd.

ArcelorMittal South Africa fell 3 rand, or 1.4 percent, to 220 rand in Johannesburg trading, valuing the company at 98.1 billion rand.

ArcelorMittal said on June 27 that the price of hot-rolled steel coil for September delivery in Europe was climbing to 770 euros ($1,214) a ton because of ``robust demand.'' Chief Executive Officer Lakshmi Mittal said June 24 that the world may be facing its first steel shortage in decades because of accelerating demand and a lack of investment in production.

Hot-rolled coil advanced 63 percent in Europe this year to 815 euros ($1,285.50) as of June 25 in Europe, according to Metal Bulletin data on Bloomberg.

To contact the reporters on this story: Carli Lourens in Johannesburg at clourens@bloomberg.net

Last Updated: July 1, 2008 11:40 EDT