Pakistan’s steel makers, International Steels Limited (ISL) and Aisha Steel Mills Limited, on Thursday said they were reviewing the Competition Commission of Pakistan’s (CCP) order imposing a penalty on the company and will take appropriate legal action as necessary.
“With reference to the order issued by CCP and the imposition of penalty on International Steels Limited, the company is reviewing the details and will take appropriate legal steps as needed,” read the notice to the Pakistan Stock Exchange (PSX).
Meanwhile, in a similar statement to the bourse, Aisha Steel said “the matter is currently under review, and the company will pursue appropriate legal recourse as deemed necessary”.
The CCP on Wednesday imposed heavy financial penalties on two leading companies of the flat steel sector, i.e. Aisha Steel Mills Limited and International Steels Limited, after finding both undertakings guilty of cartelization and price-fixing in violation of Section 4 of the Competition Act, 2010.
The CCP’s Bench, comprising Chairman Dr Kabir Ahmed Sidhu and Member Bushra Naz, passed the final order, imposing a penalty of Rs648,304,180 on Aisha Steel Mills Limited and Rs914,236,980 on International Steels Limited.
The Bench determined that both undertakings had engaged in the most egregious form of cartelization, price fixing, which is prohibited under Section 4(1) read with Section 4(2)(a) of the Competition Act.
The CCP’s detailed order notes that ASML and ISL coordinated pricing strategies, fixed flat steel prices, and exchanged commercially sensitive information, thereby distorting competition and harming consumers.
The CCP inquiry report suggested that the steel cartel increased prices by an average of 111%, with raw steel prices surging by Rs146,000 per tonne over three years.
Comments
Comments are closed for this article.