This will be the fourth steel price hike in four months. The company's spokesperson, Tami Didiza, told Engineering News on Monday that the hike was a result of continued upward movement of international prices and softening of South African currency.
Didiza, however, said it was still not charging import parity prices and was also at the bottom-end of the benchmark of steel prices, measured against domestic prices charged in about seven other countries, which is currently used to set local prices.
The base price of all the company's flat and long products would increase on an average by USD 150 a ton. But galvanised 762 mm x 0,3 mm would increase by USD 295 a ton, and galvanised 914 mm x 0,3 mm would go up by USD 266 a ton.
Didiza said the hike was due to the continued upward movement of steel prices in world markets, that had created a "substantial gap" between international prices and domestic prices.
Steel price rose between 15 per cent and 25 per cent for long and flat products in March. The company has previously stated that steel prices were rising because of higher input costs, particularly iron-ore and coking coal.
The company also warned of supply shortfalls relating to South Africa's power crisis and even hinted to a rationing programme for domestic users.