BlueScope (ASX:BSL) attempted to fix steel prices, says the Federal Court

2 min read | December 09, 2022 02:27 PM AEDT | By Sonal Goyal

BlueScope (ASX:BSL) attempted to fix steel prices, says the Federal Court — Image source: © View7 | Megapixl.com

Details of the allegation against BlueScope

In August 2019, the ACCC alleged BlueScope and Ellis that between September 2013 to June 2014, they attempted to induce several steel distributors in the nation and overseas manufacturers to ink agreements that contained a price fixing provision.

The allegation was that they intended to sign an agreement with its competitors to fix prices of flat steel products, which is a crucial material in numerous significant sectors of the Australian economy, such as transport, automotive, manufacturing, construction, and building industries.

If BlueScope had succeeded in its attempt, it would have resulted in reduced price competition in the flat steel market and a surge in prices for flat steel products. This would have put competitors at a disadvantage and consumers paying higher prices.

What lies ahead?

ACCC informed the market that a hearing on penalties has been set down for 3 April 2023. As reported, the ACCC is seeking orders to disqualify Ellis from managing corporations for a period ascertained by the court.

BlueScope commentary

John Bevan, chairman of BlueScope,

Share price snapshot of BlueScope

At 1:12 PM AEDT, the shares of BlueScope were trading flat at AU$18.14 apiece. With this, in the past one year, the share price has declined by 15.42%, and in six months, it has increased by 0.28%. In the last one month, the share price has surged by 11.14%.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.