ArcelorMittal South Africa Ltd., which uses a basket of steel costs to decide on its charges, set prices 11 percent above that benchmark since the second half of 2008, Nedbank Capital said, correcting a 33 percent estimate.
Mohamed Kharva, a research analyst at the investment bank unit of Nedbank Group Ltd., issued the revised figure in an e-mailed response to questions today. ArcelorMittal’s basket price includes steel rates in Russia, China, Europe and North America.
“The difference between the basket price and the domestic price has been around 6 percent on average since the second half of 2008,” Themba Hlengani, an ArcelorMittal South Africa spokesman, said by mobile phone from Johannesburg today.
The company was found guilty of “excessive pricing” in 2007, with a record 691.8 million-rand ($88.5 million) penalty.
The Competition Commission on April 2 recommended the local units of ArcelorMittal and Evraz Plc pay as much as 10 percent of their annual sales in penalties for colluding on steel prices related to a complaint lodged in 2008. The Commission is investigating five complaints against ArcelorMittal.