The Russian Federal Antimonopoly Service (FAS) is examining the domestic prices for steel products of four major Russian steel producers, namely Evraz, Mechel, Magnitogorsk Iron and Steel Works (MMK) and Severstal. The FAS is to present its report on the issue to Russia's Ministry of Industry and Trade by April 19 this year.
The examination was initiated upon a written complaint from Russian state-owned heavy machine building company and the country's main battle tank manufacturer, Uralvagonzavod, which pointed to a sharp increase in domestic wholesale prices, saying that Russian steelmakers were just making use of the current situation in the world market in order to push up prices unreasonably. In March, Uralvagonzavod's main steel product suppliers had announced further price increases of ten to 30 percent above the previous contract delivery level, to be effective for April deliveries.
In addition, Russian Railways (RZhD) has also complained to the Russian government regarding the steelmakers' price increases, especially as companies that supply rails and rail fasteners have been seeking a 15-21 percent increase in their prices.
Meanwhile, the country's steelmakers have refuted such accusations, citing the volatility in the markets for steel products and raw materials.