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Iscors attempta TO PROTECT ITSELF AGAINST DECLINING GLOBAL STEEL PRICES

The South African Steel industry suffers from erratic and volatile prices and market conditions. Iscor is trying many avenues to protect itself in the event of serious price declines, included in these are:
„h Trying to be one of the lowest cost producers in the world,
„h Trying to increase local demand for their product,
„h Domestic sales are at import parity. (I.e. at Dollar related prices)
„h When Iscor unbundled, it retained ownership of its iron ore supply.

Iscor maintains that orders have increased, however the growth and profitability of the Business depends on:
„h The local economic growth,
„h Steel Prices and
„h The exchange rate.

The South African Steel industry places heavy reliance on the rand-dollar exchange rate as a source for competitive advantage. At R10,40 to the dollar, exports to country¡¦s with stronger currency¡¦s becomes more attractive. The industry is however still battling to curb the high internal transport costs which leaves ...

Posted by: Cinthia De Ruiz

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