Russian antimonopoly regulator blames seven major metal traders for price fixing

Significant growth in steel prices was recorded in 2021

The Federal Antimonopoly Service (FAS) has found the largest Russian metal traders guilty of abusing their dominant position and of entering into a cartel agreement to maintain high prices for its products. Seven companies will face not only a fine, but also, possibly, criminal charges for restriction of competition, Kommersant newspaper said.

FAS blamed Steel Industrial Company, Metal Rolled Service Center, Stroytehcentr Enterprise, A Group, Uralmetallstroy, KRASO Metal Trading Company’s Procurement and Supply Department for coordination their practices for a long time, maintaining auction prices for the supply of rolled steel with an aggregate SOB at RUB 2.7 billion. Now they face turnover-based fines and criminal charges.

The federal regulator in addition to traders, is investigating into a price fixing case of the largest metallurgical companies: Severstal, NLMK and MMK, suspecting them of overpricing for hot-rolled steel. The decision is expected in the first quarter of 2022.

The increase in the actual value of contracts for the construction of ships last year is attributed to a spike in steel prices as one of the main reason. Alexei Rakhmanov, head of United Shipbuilding Corporation (USC) previously has said that for a number of positions, the increase from October 2020 amounted to 60%.