ISLAMABAD: The Competition Commission of Pakistan (CCP) has issued show-cause notices to International Steel Ltd (ISL) and Aisha Steel Mills Ltd (ASML) for alleged cartelisation in the flat steel market.

An inquiry conducted by the commission found prima facie evidence suggesting that the two leading producers engaged in price-fixing, coordinated price changes, and exchanged commercially sensitive information, in violation of Section 4 of the Competition Act 2010.

The CCP initiated an inquiry in May 2021 following informal complaints regarding possible cartelisation by local flat steel manufacturers. Complaintssuggested that prices of flat steel products were moving in parallel, and there were allegations of an artificial shortage in the market.

Price analysis indicated a pattern of price parallelism among the major players, with price changes occurring simultaneously and in identical quantum.

Between July 2020 and December 2023, the prices of cold-rolled coil (CRC) increased by Rs146,000 per tonne for ISL and Rs145,900 per tonne for ASML, renectinganaverageincrease of111pc.

To further investigate these allegations, the CCP conducted a Search & Inspection at the premises of ISL and ASML on June 12, 2024. The impounded evidence suggests that the two companies allegedly coordinated with each other before implementing any price changes and discounts.