POST Online Media Lite Edition



 

Germany imposes first fines totalling 205 million euros on special steel companies

Staff Writer |
The Bundeskartellamt has imposed fines totalling approx. 205 million euros on six special steel companies, a trade association and ten individuals for concluding price-fixing agreements and exchanging competitively sensitive information.

Article continues below




The companies are: ArcelorMittal Commercial Long Deutschland GmbH, Cologne, Dörrenberg Edelstahl GmbH, Engelskirchen, Kind & Co. Edelstahlwerke GmbH & Co.KG, Wiehl, Saarstahl AG, Völklingen, Schmidt + Clemens GmbH + Co. KG, Lindlar and Zapp Precision Metals GmbH, Schwerte. The trade association concerned is Edelstahl-Vereinigung e.V., which has meanwhile been liquidated.

Investigations into four other companies and a trade association are still ongoing.

The proceeding was initiated in November 2015 with a sector-wide dawn raid following a leniency application by voestalpine AG, Linz, Austria. In accordance with the Bundeskartellamt's leniency programme, no fines will be imposed on voestalpine.

Andreas Mundt, President of the Bundeskartellamt: "For years the companies have coordinated on important price components for the sale of special steel. By coordinating the calculation and implementation of uniform scrap and alloy surcharges across the sector and extensively exchanging competitively sensitive information, they have significantly restricted price competition between each other."

The companies are producers or processors and traders of special steel products. Among the products covered by the agreements are long steel products in particular engineering steel, tool steel and high-speed steel as well as stainless steel (i.e. rust, acid and heat-resistant steel).

These special steel products were usually sold based on a price model which essentially consists of the so-called base price and surcharges for certain inputs, especially scrap and alloys.

These surcharges accounted for a substantial part of the end price, e.g. approx. a third of the engineering steel price, around half of the tool and high-speed steel price and around two-thirds of the price for stainless steel, on account of the comparatively higher proportion of alloying elements.

At least from 2004 until at latest the dawn raid in November 2015, the steel producers had jointly agreed on and implemented the uniform method of calculation of the scrap and alloy surcharges for special steel products across the sector. There was also a basic agreement between the companies that the surcharges be passed on to the customers on a 1:1 basis.

The investigations showed that representatives of the steel producers also exchanged information on increases in the base price, at least for engineering steel. In addition, further sensitive information was exchanged, e.g. on the current order situation, customer stock levels, capacities, production stoppages and planned price increases, which was of relevance for the companies' competitive behaviour.

The trade associations, in particular Edelstahl-Vereinigung e.V., played a decisive role in the agreements. The companies were able to use the various association meetings as a platform for implementing the agreements. The association also played an active part by processing and providing the companies with data for coordinating the scrap and alloy surcharges.

It is clear from the authority's investigations that after the expiry of the Treaty establishing the European Coal and Steel Community (ECSC), which from mid-1952 to mid-2002 provided for a large number of special rules for the steel industry, including in the area of pricing, the companies concerned were eager to maintain the existing market situation in order to avoid or appreciably reduce price competition and to establish an adequate price level in the market for all the companies.

The companies named admitted to the accusations made by the Bundeskartellamt and agreed to a settlement. In calculating the fines it was also taken into account that the companies ArcelorMittal, Kind & Co., Saarstahl and Zapp had cooperated with the Bundeskartellamt in clarifying the facts of the case.

The fines against Edelstahl-Vereinigung e.V. and one individual responsible are already final. The other fines can be appealed to the Düsseldorf Higher Regional Court.


What to read next

Italy fines BA, Etihad Airways over 'no-show' ticket rules
Saudi companies fined $24.9 million for monopoly
Europe fines air cargo carriers €776 million for price-fixing cartel

U.S.: Areas of excessive rainfall and severe thunderstorm potential today

 
A pair of slow moving storm systems are responsible for prolonged periods of heavy rain and thunderstorms in the Southeast and the Northeast.
 
 

Latest

Baker Hughes: U.S. oil rig count down by 5 to 474
LEGO Group will create 305 new jobs in Prince George County, Virginia
PPG will establish Cleveland County manufacturing center creating 110 jobs
World's first vaccines that don't need refrigeration entered trials

NEWS

Captain of Hong Kong ship charged with damage to Baltic gas pipeline

U.S.: Strong to severe thunderstorms from Southern Plains to Ohio Valley
U.S.: Severe thunderstorms, heavy rain and fire threat
Peru court jails ex-President Humala for money laundering
Bosnia risks air traffic shutdown over unpaid debt
Active weather in Eastern U.S.; warm weather and critical fire weather across portions of West
 

BUSINESS

U.S. rig count drops for first time in three weeks

Azerbaijan seeks investor to build bitumen materials plant
Baker Hughes: U.S. oil rig count up by 2 to 483
Domestic tourism spending in Britain falls by £3bn, analysis reveals
IMF approves $20 billion extended arrangement for Argentina
Bangladesh, Japan sign construction deal for Matarbari deep seaport
 

Trending Now

Mission to "weigh" all of Earth's forests from space launched

Spain unveils plan for Europe's largest hydrogen pipeline network

Government and MBS Global Investments to create Maldives International Financial Centre

Skechers agrees to be acquired by 3G Capital


POLITICS

Commission: Sweden failing to fulfil its obligations under EU maritime security acquis

European Parliament approved wide framework for screening of foreign direct investments
Government and MBS Global Investments to create Maldives International Financial Centre
Greece and Egypt reaffirm plans for 1,000-kilometre undersea power cable
Czech government buys 80% stake in Dukovany II power plant
Punjab to launch Air Punjab and Pakistan's first bullet train
 

Today We Recommend

Government and MBS Global Investments to create Maldives International Financial Centre


Highlights 

LEGO Group will create 305 new jobs in Prince George County, Virginia

PPG will establish Cleveland County manufacturing center creating 110 jobs

Skechers agrees to be acquired by 3G Capital


COMPANIES

Disney announces Abu Dhabi theme park and resort

Skechers agrees to be acquired by 3G Capital
Incat unveils world’s largest battery-electric vessel
Spain unveils plan for Europe's largest hydrogen pipeline network
Rolls-Royce and Turkish Technic to establish world-leading aero engine maintenance facility
543 new jobs to be created in Wayne, Bay Counties, Michigan
 

CAREERS

Jetcraft appoints Philip Baer as sales director in U.S.

Pere Mañé appointed as new CEO of Suanfarma
Ben Söderling new CEO of Sovellusmestarit Oy and MoveRoll Oy
Helio Fujita joins Mars as global people & organization VP for petcare business
Cold Summit appoints Harld Peters as president of Cold Summit Europe
Royal Van Leeuwen chairman Peter Rietberg stepped down
 

ECONOMY

California is now world’s 4th-largest economy

Thailand's exports jump 17.8 pct to 3-year high in March
Turkish exports hit second highest March figure on record
EU hourly labour costs ranged from €11 to €55 in 2024
U.S. consumer confidence dropped sharply in February
EU records trade surplus for 6 quarters in a row
 

EARNINGS

Ericsson Q2 sales down but North America up

Lockton revenue $3.55 billion
Motorcar Parts of America Q4 sales $189.5 million
Limoneira Q2 revenue $44.6 million
Lululemon athletica Q1 revenue increased 10% to $2.2 billion
PVH Q1 GAAP EBIT $205 million
 

OP-ED

Micromanaging is the worst enemy of efficiency and teamwork

Niger set to monetize massive gas reserves through Saharan natural gas pipeline
Putting the brakes on EV folly that choked the market
Oil discovery in Kavango Basin may mean huge benefits for Namibians
Cape Town and Dubai battle over Africa's energy future
Is America going to lose its superpower status?
 

AGRIFISH

Minister István Nagy: FMD immunity can be announced on May 30

£50 million equipment and technology grants to boost food production, farm profitability
Philippines approves beef supplies from Russia
Hong Kong: Import of poultry meat and products from areas in U.S. suspended
U.S.-Mexico reach agreement on screwworm
Tanzania bans agricultural imports from South Africa and Malawi
 

LEADERSHIP

Study: Missing a deadline has a bigger impact than you might think

Employers prefer younger job candidates for AI roles although experienced workers perform same or better
Study finds workers misjudge wage markets
Some organizations may need to expand their hierarchical structures earlier than others
Study finds there's right way and wrong way to deliver negative feedback in workplace
Allyship is critical and its needs appreciation
 

CRIME

EU fines carmakers €458 million for anti-recycling cartel

Commission fines Pierre Cardin and its licensee Ahlers €5.7 million for restricting cross-border sales of clothing
BHP, Vale agree to pay $30B damages for Brazil dam disaster
Commission fines České dráhy and Österreichische Bundesbahnen €48.7 million over collusion to exclude common compe
SEC charges Keurig with making inaccurate statements regarding recyclability of K-Cup beverage pod
SEC charges John Deere with FCPA violations for subsidiary’s role in Thai bribery scheme
 

Magazine

TRAVEL

Radisson Hotel Group debuts in the heart of Tunisia’s capital city, Tunis

Morocco’s first Radisson branded hotel opens in Casablanca
Buna channels, an unreal and beautiful part of Bosnia and Herzegovina
JW Marriott unveils Mindful Haven with opening of JW Marriott Hotel Nairobi
Sotheby's Sports Week returns with fantastic artifacts
Red Roof properties open in Michigan
 

SEA, LAND, AIR

Citroën C3 Aircross, the most affordable compact SUV with 7 seats

2025 Chevrolet Equinox stands apart with fresh looks and capability
Hill Helicopters HX50, luxury in the sky
Opel Movano becomes fully equipped camper van
Porsche Panamera, new hybrid variants
Dodge Charger, 670 horsepower of electric
 

DESIGN

Cold night, hot fire pit, cool entertainment

Embellish your home with PVC panels
You'll have to hurry if you want one of 20 new Louis Vuitton watches
Luxury duvet looks good, fells good and keeps you healthy
Vacheron Constantin, watches for life and more
Schüller kitchens, where functionality marries design
 

GADGETS

MESA/Boogie Celebrates 40-year partnership with John Petrucci

reMarkable 2, monochrome tablet for your thoughts and your eyes
OnePlus Ace 3V, first with Snapdragon 7 Plus Gen 3
ASUS Zenfone 11 Ultra, flagship with a reason
Samsung Galaxy S24 is photography powerhouse
Casette tapes are making a big comeback, and so are portable players
 

HEALTH

First patient enrolled in Phase 1 clinical trial of Akiram’s cancer drug candidate

FDA grants marketing authorization of first home test for chlamydia, gonorrhea and trichomoniasis
Human cases of anthrax reported in western Mongolia
One more barrier to developing vaccine for HIV removed
Rwanda begins world's first clinical trial for treatment of Marburg virus disease
Rwanda restricts gatherings amid Marburg virus outbreak, to begin trials of vaccine
 

MEANTIME

Mission to "weigh" all of Earth's forests from space launched

NASA's SPHEREx space telescope begins mapping entire sky
Russian academics, gas industry experts see undersea LNG transportation as feasible
India launches space docking experiment mission
World-first carbon-14 diamond battery made
Einstein Telescope step closer