Competition Commission fines two steel giants Rs1.5bn for price fixing
The Competition Commission of Pakistan (CCP) has issued a landmark ruling against cartelization in the steel industry, imposing fines exceeding Rs1.5 billion on two major companies for their involvement in price fixing.
The CCP’s two-member bench, comprising Chairman Kabir Sidhu and Member Bushra Naz, found that Ayesha Steel Mills and International Steels Limited colluded to manipulate prices of raw steel between 2021 and 2024, eliminating fair competition and burdening consumers with excessive costs.
Steel prices soared 111% over 3 years
According to the CCP’s investigation, the two companies artificially increased steel prices by an average of 111% over a three-year period. This manipulation led to a record rise of Rs146,000 per ton in crude steel prices — a surge that had a direct and severe financial impact on industries and consumers across Pakistan.
The commission observed that this coordinated price escalation restricted market competition, resulting in unjustified profits for the companies at the expense of the general public and downstream sectors.
Heavy fines imposed
The CCP bench has imposed a fine of Rs648.3 million on Ayesha Steel Mills and Rs 914.2 million on International Steels Limited, bringing the total penalty to over Rs1.5 billion.
Both companies have been ordered to deposit the fines within 60 days. Failure to comply will result in an additional penalty of Rs100,000 per day, as stipulated by the Commission’s decision.
‘Cartel formation won’t be tolerated’
In his remarks following the verdict, Chairman Kabir Sidhu emphasized that the Competition Commission will not tolerate cartelization or price manipulation in any market. He reaffirmed that strict action will continue against entities violating Pakistan’s competition laws.
