Steelmakers in Russia are preparing to dramatically increase their contribution to industrial inflation in the country, getting ready to raise their domestic prices for rolled steel by 15-30 percent in 2015, according to the Russian business newspaper Kommersant.
The partnership of producers and users of railway rolling stock, "Association Vagonostroiteley", has announced the plans of steelmakers to dramatically increase the price of rolled steel in 2015. According to the association, all the largest steel companies have sent relevant notices already. It added that in 2014 the prices for steel products for railcar producers increased by 26-28 percent, and, taking into account the expected increases in 2015, overall price growth will reach 35 percent.
Railcar producers believe that steelmakers will raise prices to the level of export prices, although there are "no obvious reasons" for the increase - raw materials costs have decreased by 30 percent, while transport costs have not recorded any increase. As a result, the car industry, which is already in crisis (with production down 22.5 percent and prices declining by 26 percent), may be faced with the prospects of closures. Furthermore, transport costs may increase, as prices of railcars will rise.