Islamabad, Mar 11 2025: The Competition Commission of Pakistan (CCP) has formally issued Show Cause Notices to International Steel Limited (ISL) and Aisha Steel Mills Limited (ASML) over allegations of cartelization in the flat steel market.
According to an official statement, a detailed investigation by the Competition Commission of Pakistan (CCP) uncovered prima facie evidence indicating that both companies were involved in price-fixing.
Coordinated pricing strategies, and the exchange of commercially sensitive data, violating Section 4 of the Competition Act, 2010.
A detailed price analysis revealed a pattern of synchronized pricing behavior between ISL and ASML, with price adjustments occurring simultaneously and in similar increments.
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From July 2020 to December 2023, the cost of Cold-Rolled Coil (CRC) surged by Rs. 146,000 per metric ton for ISL and Rs. 145,900 per metric ton for ASML, marking an average price hike of 111 percent.
To further substantiate these allegations, the Competition Commission of Pakistan (CCP) conducted an on-site Search & Inspection at the headquarters of both ISL and ASML on June 12, 2024.
The retrieved evidence suggested that both steel manufacturers allegedly coordinated pricing strategies and discount implementations before making them public.
Findings from the inquiry report also indicated that ISL and ASML exchanged sensitive business data, including raw material procurement costs, allowing them to align final product prices.
Since Cold-Rolled Coil (CRC) and Galvanized Coil (GC) are essential materials for industries such as automotive, electronics, agriculture, and manufacturing, any anti-competitive activities within this sector could significantly impact industrial expenses and consumer costs.
Following the completion of its investigation, the Competition Commission of Pakistan (CCP) has now served Show Cause Notices to both ISL and ASML.
