Entrepreneurs from the regions complain about the increase in the price of metal products and its shortage
20.05.2021
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Russian entrepreneurs are counting on measures to stabilize prices for rolled metal after growth, which they estimate at the level of 50-80% over the past six months. This is stated in a letter from the head of the Chamber of Commerce and Industry (CCI) Sergey Katyrin to the Minister of Industry and Trade of the Russian Federation Denis Manturov.
shortage of materials in the market of metal products. According to data provided by the business community, the increase in prices for rolled metal products in the domestic market from November 2020 to April 2021 amounted to 50-80%. At the same time, in May 2021, a further increase in prices is expected in the range from 8.6% to 12%,” the letter says, a copy of which is available to TASS.
According to Katyrin, special difficulties arise in the fulfillment of obligations under previously concluded state and municipal contracts, which "significantly increases the risks of non-fulfillment of government orders."
risks of bankruptcy of manufacturers of metal structures, jeopardize the further development of industrial enterprises, including the export of finished products. As a result of the reduction in production activity, revenues to the budget system of the Russian Federation are also declining,” the head of the Chamber of Commerce and Industry said.
According to him, the business community “considers it necessary to take measures to stabilize prices for rolled metal products and saturate the domestic market with raw materials to meet the needs of domestic producers in all sectors of industrial production. Katyrin asked Manturov to inform him about the measures that the ministry plans to implement to resolve the current situation and offered to help develop initiatives.
Background
At the end of 2020, a number of developers in the Russian Federation complained about the increase in the cost of rolled metal, which contributed to the growth of construction costs against the backdrop of the introduction of the state program of preferential mortgages at a rate of up to 6.5%. From February 1, 2021, protective duties (5%, but not less than €45 per ton) were introduced on waste and scrap of ferrous metals, it was also proposed to transfer purchases of metal products by developers directly from manufacturers, excluding the trading link.
metal on the territory of the Russian Federation grew by 20% in March-April 2021, Anton Glushkov, president of the National Association of Builders (NOSTROY), told TASS. As a result, cases were brought against a number of traders, as well as manufacturers themselves, such as MMK, NLMK and Severstal. According to the service, they maintained monopolistically high prices in the flat-rolled steel market.
Earlier, the Ministry of Industry and Trade proposed to include iron ore, rolled steel and a number of other metal products in the list of goods, the export of which can be limited if necessary. Deputy head of the ministry Viktor Yevtukhov said on May 19 that the ministry does not expect a decline in world prices for metal products until the end of autumn. At the same time, he explained that prohibitive export duties on metal can only have a short-term impact on prices, but threaten to stop enterprises.
