[Ferro-Alloys.com] 

Russia's "kommersant" reported on december 28, recently, russia's national federation of housing builders to russia's deputy prime minister hu snulin complaints, russian metal prices soared, steel prices rose 40% in a month. The federal anti-monopoly agency has sent a letter to the ministry of industry and trade proposing a tariff of 13% and not less than $73 per ton on billet exports and a tax rate of 12% and not less than $78 per ton on steel exports for a six-month period, according to deputy prime minister hussnurin. Sources said Russian authorities had focused on rising prices of steel products in the Russian market as early as the study of export tariffs on steel waste.

 

Russia's anti-monopoly agency pointed out that the surge in steel exports and increased scrap costs led to higher steel prices in the Russian market. According to the Russian Steel Pipe Industry Development Foundation, in the past month, the price of steel bar Black Sea FOB rose from $460 per ton to $580 per ton; since January, the average price of scrap steel in the Russian market has soared.  

 

Russian government related measures caused controversy. Russian metallurgical industry experts believe that some steel price increases are temporary, Russian metallurgical industry did not violate anti-monopoly law or adopt non-market pricing. As the regulatory body responsible for fair competition in the market, the Russian Antimonopoly Administration proposed that taxation would distort market competition, and that tax measures were not within its purview and should be the responsibility of the Russian Economic Development Department. Hu darov, a ACRA expert at the russian credit rating agency, said the proposal would not lead to lower prices in the russian domestic market. Hu pointed out that in the past 3-4 months after the international steel market price adjustment, Russia's domestic prices will fall back on their own. The Russian government should temporarily open the market to Ukrainian steel products and reduce the transportation cost of steel rolling materials, thus reducing the price of domestic related products. In addition, the government can also use Russian reserves to put steel into the market, until the price of related products stabilized before replenishing inventory.