Islamabad, March 11, 2025 – The Competition Commission of Pakistan (CCP) has taken decisive action against alleged cartelization in the steel industry by issuing Show Cause Notices to International Steel Limited (ISL) and Aisha Steel Mills Limited (ASML).
The notices were served following an extensive investigation into anti-competitive practices in the flat steel sector.
According to a press release issued on Tuesday, the CCP’s inquiry uncovered prima facie evidence suggesting that ISL and ASML engaged in price-fixing, coordinated price changes, and exchanged commercially sensitive information. These actions are in violation of Section 4 of the Competition Act, 2010, which prohibits cartelization and anti-competitive agreements.
The CCP launched its inquiry in May 2021 after receiving informal complaints alleging cartelization among local flat steel manufacturers. Reports indicated that steel prices were moving in parallel, raising concerns over potential artificial shortages in the market. A detailed price analysis revealed that the major players exhibited a pattern of synchronized price adjustments, suggesting collusive behavior.
Between July 2020 and December 2023, the price of cold-rolled coil (CRC) increased by Rs. 146,000 per metric ton for ISL and Rs. 145,900 per metric ton for ASML, representing an average hike of 111 percent. To further probe these allegations, the CCP conducted a Search & Inspection at the premises of ISL and ASML on June 12, 2024, seizing crucial evidence.
The impounded material suggests that ISL and ASML allegedly collaborated before implementing price changes and discount policies. Additionally, the CCP’s findings indicate that the two steel companies exchanged sensitive commercial information, particularly regarding raw material procurement, enabling them to align their final product pricing strategies.
Flat steel products, such as Cold Rolled Coil (CRC) and Galvanized Coil (GC), are integral to various industries, including electronics, automotive, agriculture, and general manufacturing. Any anti-competitive behavior in the steel market significantly impacts industrial costs and consumer prices, making regulatory oversight critical.
Interestingly, the CCP’s investigation did not find any collusive activities involving Hadeed Pakistan Limited (HPL), a smaller competitor in the steel sector. In light of its findings, the CCP has issued Show Cause Notices to ISL and ASML. The Commission will now review written and oral arguments from the accused steel companies before delivering a final verdict on the matter.
The CCP reaffirmed its commitment to ensuring fair competition in Pakistan’s steel industry and warned that any violation of competition laws would result in strict penalties. Industry stakeholders await the Commission’s final ruling, which could set a significant precedent for future regulatory actions against cartelization in the steel sector.
