PRESS: Russia Severstal wants clients buy steel at high prices

MOSCOW, Oct 6 (PRIME) -- Russian tycoon Alexei Mordashov, the core owner of steelmaker Severstal, has suggested the government stimulate consumers to buy reinforcement steel and other products of the company at high prices of before July–September, business daily Kommersant reported Thursday.

In a letter to Deputy Prime Minister Arkady Dvorkovich, Industry and Trade Minister Denis Manturov, and the Federal Antimonopoly Service’s Director Igor Artemyev, Mordashov said that it would be fair if consumers buy reinforcement steel at prices of before a fall on the world and Russian markets.

In April–May, Russian consumers complained about growing prices and asked the government to take measures. However the price for reinforcement steel fell 24% in May–August to below September 2011, while the price of scrap metal, used to produce steel, went up. Mordashov thinks it may lead to a repetition of a situation of the end of 2015, when some plants halted production.

This initiative is also an answer to requests of construction companies and car producers to the Federal Antimonopoly Service, which launched a case against reinforcing bars producers, including Severstal, due to a 34–103% growth of prices in January–April. The case was delayed to early November.

A representative of Severstal confirmed that the letter was sent. Representatives of Steelmakers Mechel, Evraz, Magnitogorsk Iron and Steel Works (MMK), and Novolipetsk Steel (NMLK) declined to comment.

A representative of the service said that the letter was received on Wednesday, but the service has not yet defined its position on the issue.

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