The Competition Commission has launched raids on four steel production companies in South Africa, conducting search-and-seizure operations on suspicion of price fixing.
The commission raided the premises of the four scrap metal purchasing companies operating in Germiston, Nigel, Vanderbijlpark, and Hammanskraal.
The companies under investigation operate as buyers of shredded or processed scrap metals, which they use to produce long steel products.
“The commission has reasonable grounds to suspect that the companies have engaged in fixing the purchase price of shredded or processed scrap metal,” it said.
“It is alleged that these firms have made price adjustment announcements of the same amount for implementation at more or less the same time.”
This conduct may amount to fixing of prices and/or trading conditions in contravention of section 4(1)(b)(i) of the Competition Act 89 of 1998.
Commissioner Doris Tshepe said that scrap metal forms part of the industrial intermediary products, which is a priority sector for the commission.
“Dismantling any alleged price-fixing cartel in the market will go a long way towards eliminating any existing artificial barriers to entry and create a conducive environment for all firms,” she said.
This is particularly for small businesses and firms owned by historically disadvantaged persons, helping them to enter and participate in the market.
The companies include:
- Scaw South Africa (Pty) Ltd
- Cape Gate (Pty) Ltd
- Shaurya Steel (Pty) Ltd trading as Force Steels
- Unica Iron and Steel (Pty) Ltd
The commission said that the search and seizure operations are being conducted as part of an ongoing investigation of a complaint lodged by a third party in 2023 and a complaint initiated by the commissioner in February 2026.
“During the search, the commission will seize documents and electronic data, which will be analysed together with other information gathered to determine whether these companies have contravened the Act,” it said.
In terms of section 48 of the Act, the Commission is authorised to enter and search premises and seize documents that have a bearing on its investigation.
The commission noted that it has obtained a search warrant from the North Gauteng High Court authorising it to enter the premises of these companies and to seize information bearing on the investigation.
“The search and seizure operation is conducted with due regard to the rights of all affected persons,” it said.