CADE Has Started an Administrative Proceeding to Investigate Aperam

It is learned that Brazil’s Administrative Council for Economic Defense (CADE) has started an administrative proceeding to investigate Aperam. The body claims that Aperam Inox South America SA might be taking unfair advantage of its stranglehold over the country’s stainless steel manufacturing to compete imports and rivals.

The root of this investigation is from domestic distributor Inox-Tech Comércio de Aços Inoxidaveis Ltda. and the National Union of Wiredrawing of Ferrous Metals, or SICETEL.

The companies claimed that Aperam's discount and purchase volume policies for acquisitions are an attempt to make harder to import stainless steel, which is the only competing source of the material in Brazil, according to CADE.

Aperam said in a statement that its business practices were aligned with best business practices and in full compliance with Brazil's competition laws and they will mobilize every effort to cooperate with CADE in its investigations and is confident these will demonstrate the absolute lack of basis of the denunciation.