The Competition Commission of Pakistan (CCP) has issued show-cause notices to International Steel (ISL) and Aisha Steel Mills (ASML) over alleged cartelization in the flat steel market. A final decision will be made after reviewing written and oral arguments from both companies.
The notices follow a CCP inquiry that found preliminary evidence of price-fixing, coordinated price changes, and the exchange of commercially sensitive information, potential violations of Section 4 of the Competition Act, 2010. The investigation began in May 2021 after complaints suggested that flat steel prices were moving in parallel and that an artificial shortage was being created.
Price analysis revealed a pattern of simultaneous and identical price changes among major players. Between July 2020 and December 2023, the price of CRC rose by PKR 146,000 (USD 520) per ton for ISL and PKR 145,900 (UDS 520) per ton for ASML, an average increase of 111pct.
On June 12, 2024, the CCP conducted a search at the premises of both companies, uncovering evidence suggesting they coordinated price changes and discounts. The inquiry also found that ISL and ASML shared raw material purchase prices, enabling them to align final product pricing.
The CCP noted that anti-competitive practices in the steel sector impact on industrial costs and consumer prices. However, no evidence of collusion was found involving the smaller competitor, Hadeed Pakistan Limited.
1 USD / 280.6 PKR