CPA, ECA investigate steel manufacturers for alleged monopolistic practices

Consumer protection and competition authority are probing steel manufacturers for alleged anti-competitive practices: The Consumer Protection Agency and Egyptian Competition Authority are investigating local steel makers for allegedly engaging in anti-competitive practices after a series of price hikes, Al Borsa reports. Steel factories’ output hovers around 8 mn tonnes per annum, despite having a production capacity of 11-12 mn tonnes, CPA head Atef Yacoub says. Yacoub says “there is no logical reason” for the factories to produce less than their maximum capacity — which has resulted in rising prices — particularly after the Trade and Industry Ministry imposed anti-dumping tariffs on Turkish, Chinese, and Ukrainian steel. Manufacturers have also been raising their prices almost simultaneously, which raises suspicions of collusion, according to Yacoub. Industry players including Beshay Steel say that the price hikes are a natural reflection of rising international prices of raw materials.