Steel price determination in the European Community

The paper is the result of an investigation into the pricing practices of large steel manufacturers in the European Community. From mid‐1993 to early 1994, steel prices in the community rose substantially. The unity of purpose displayed in an industry that has high fixed costs and chronic overcapacity caused some concern among steel users and policy makers. Research undertaken to ascertain whether or not collusive pricing had occurred indicated that steel firms priced their products to achieve long‐term survival. There was nothing to suggest that their pricing was collusive. The implication of this is that while certain practices may smack of collusion, a case by case investigation is always necessary to establish the presence or otherwise of any suspected anti‐competitive conduct.