The Competition Tribunal has dismissed an application for interim relief against ArcelorMittal South Africa (AMSA) sought by steel producers Cape Gate and Scaw South Africa, which alleged that AMSA was engaging in predatory pricing in relation to long-steel products.

In their application to the tribunal, Cape Gate and Scaw claimed that, following a recent financial bailout from government, AMSA had announced significant price cuts on certain long steel products on April 14, 2025.

The two companies argued that AMSA implemented the cuts to weaken its rivals in the market, which were having to increase their prices at the time in response to a chronic shortage of scrap metal, which they used to produce long steel.

AMSA, they alleged, was intentionally sacrificing profits in the short term to secure higher profits in the longer term, as a result of reduced competition in the market.

Cape Gate and Scaw asked the tribunal to interdict AMSA from engaging in predatory pricing and to direct AMSA to charge prices not less than those that pertained on April 14.

In opposing the application, AMSA argued that there had been no material reduction in the prices charged before and after April 14 that could amount to predatory pricing.

AMSA also argued that Cape Gate and Scaw had failed to establish a prima facie case of predatory pricing or exclusionary conduct, or demonstrate that interim relief was needed to prevent serious or irreparable damage to them.

Following a hearing, the tribunal has dismissed the application for interim relief and said in a September 17 statement that it would, in due course, release full reasons for its decision.

AMSA welcomed the order and said in a statement that it remained committed to competing lawfully, supporting its customers, and contributing to the resilience of South Africa’s steel value chain.

Having in March delayed the wind down of its longs business after receiving additional support from the State-owned Industrial Development Corporation, the JSE-listed company is currently trading under a cautionary announcement in relation to its longs business.

It confirmed recently that processes were still ongoing in relation to a possible intervention to prevent the closure, but at the end of August it announced that the Newcastle mill had been placed into care and maintenance.

It also confirmed that further preparatory steps were being taken toward the close of the longs business.

AMSA announced previously that, unless a structural solution was found to the unit’s lack of sustainability, the long business would be closed on September 30, 2025.