ArcelorMittal Says It Will Raise Steel Prices if South Africa Imposes a Carbon Tax

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Coiled steel for import

Africa’s largest steel maker, ArcelorMittal South Africa, said on Tuesday it would raise its prices if the government implements a carbon tax in 2016.

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The carbon tax is one of several green laws the South African government is planning to impose on industry and consumers to try and reduce emissions, and companies are scrambling to meet deadlines for the laws.

At current carbon emission rates, ArcelorMittal South Africa, part of the world’s top steelmaker ArcelorMittal, would pay about 600 million rand ($54.5 million) of carbon taxes a year.

“As a competitive company, I am going to pass the price onto my consumers,” Chief Executive Paul O’Flaherty told Reuters on the sidelines of a news conference.

Closing at CNY 9,550 ($1,555) per metric ton on Monday, December 1, Chinese 304 stainless steel scrap saw the biggest change. After hitting a 30-day low of CNY 23,700 ($3,858) per metric ton on Thursday, November 27, the price of Chinese 316 stainless coil rose 6.3% yesterday. Ending at CNY 17,500 ($2,849) per metric ton by a 6.1% shift, Chinese 304 stainless coil made one of the day’s biggest improvements. Chinese 316 stainless steel scrap prices saw a 1.1% decline to CNY 13,100 ($2,132) per metric ton. The price of Chinese primary nickel saw a 0.8% decline to CNY 111,000 ($18,068) per metric ton.

The price of Chinese ferro-moly fell yesterday to CNY 90,500 ($14,731) per metric ton after three straight days with no change. The price of Chinese ferro-chrome rose on Monday, just off the 30-day low of CNY 11,050 ($1,799) per metric ton it hit on Thursday, November 27.

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The spot price of nickel weakened by 1.3% on the LME, settling at $16,080 per metric ton. On the LME, the 3-month price of nickel fell 1.2% to $16,150 per metric ton. The Indian nickel cash price weakened by 0.8%, settling at INR 1,008 ($16.20) per kilogram.

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