Ispat Iscor announced that it will adjust domestic prices on certain steel products by 2.5 to 8% in line with international price movements. The price adjustments will be effective from November 2004.

International steel prices had recently moved up by $20 to $40 per ton in different regions of the world.

Ispat Iscor said the price adjustments — only applicable to flat steel products — would be 2% on galvanized steel, 6% on thin galvanized steel, 7% on cold rolled coil, and 8% on hot rolled coil.

The company said the price increases take account of the sustained high international dollar prices for steel, which are still at record levels, as well as the weaker rand. Since the beginning of August the rand weakened by 9% against the dollar spot price.

At its interim results presentation last month, Ispat Iscor reported a 22% improvement in domestic steel dispatches for the six months to June 2004, and said it expects growth in the domestic steel market to continue for the second half of the year, in line with the improvement in manufacturing activity.

The company previously announced domestic price increases of 7.5% for hot rolled coil and 4% for cold rolled coil, effective from October 2004.