Russian steel maker MMK said that it disagrees with the final conclusions of the Federal Antimonopoly Service of Russia commission and its decision, according to which the Company's actions were found to be violating Russian antimonopoly legislation. In MMK’s opinion, the FAS, despite the objections submitted by the Company to the conclusion on the circumstances of the case and the previously submitted written explanations and economic evidence, came to wrongful conclusion that MMK's actions violated the antimonopoly legislation. These conclusions of the FAS Russia, in MMK’s opinion, contradict the existing evidence and fail to take into account the market reality for hot-rolled flat products.MMK noted that throughout the entire investigation of the case the Company has been providing the FAS commission with convincing and exhaustive evidence that MMK does not have a dominant position in the Russian flat steel market. MMK has repeatedly and reasonably declared that its pricing complies with the requirements of the antimonopoly legislation, duly answering all the questions posed by the commission. Representatives of MMK emphasized that the market for hot-rolled flat products is volatile and cyclical, which was confirmed by the price dynamics of 2021. Rolled metal prices are formed depending on market conditions, within dynamic competition between market participants. Also, prices in this sector are closely connected with the situation on global markets.The FAS initiated an investigation over Russia’s biggest fiat steel producers in April 2021, taking into account complaints about an unfair increase in prices for HR steel. The Federal Antimonopoly Service of Russia has finished the investigation over the big three companies regarding the high prices for HR steel products, intending to fine them for law violations. After a thorough investigation FAS decided that Severstal, NLMK, and MMK kept monopoly high prices for HR fiat products in the domestic market since January 2021, accusing the producers of using non-market” factors, which led to such levels. The authorities give several points to prove their conclusion. On the one hand, HR flats costs were lagging behind the increase in the domestic prices; on the other hand, FAS has found that companies generated 3-fold higher profits even though there was no growth in sales volume and significant upturn in demand. On top of that, the "big three” have failed to confirm the unsatisfied demand from foreign customers, thus there were no factors in bringing domestic prices to the level of those for export contracts. Consequently, the companies, which have a dominant position in the domestic market, have violated anti-monopoly law since they increased prices only to meet the rise in prices abroad. FAS said “Severstal, MMK arid NLMK have been ordered to stop abusing their dominant position and take actions aimed at ensuring competition. Based on the materials of antimonopoly cases, cases of administrative violations will be initiated and fines will be calculated for each company."Earlier, the authority found signs of price fixing in the long steel segment, and accused seven metal traders, including Steel Industrial Company and A Group, of law violations
Russian steel maker MMK said that it disagrees with the final conclusions of the Federal Antimonopoly Service of Russia commission and its decision, according to which the Company's actions were found to be violating Russian antimonopoly legislation. In MMK’s opinion, the FAS, despite the objections submitted by the Company to the conclusion on the circumstances of the case and the previously submitted written explanations and economic evidence, came to wrongful conclusion that MMK's actions violated the antimonopoly legislation. These conclusions of the FAS Russia, in MMK’s opinion, contradict the existing evidence and fail to take into account the market reality for hot-rolled flat products.MMK noted that throughout the entire investigation of the case the Company has been providing the FAS commission with convincing and exhaustive evidence that MMK does not have a dominant position in the Russian flat steel market. MMK has repeatedly and reasonably declared that its pricing complies with the requirements of the antimonopoly legislation, duly answering all the questions posed by the commission. Representatives of MMK emphasized that the market for hot-rolled flat products is volatile and cyclical, which was confirmed by the price dynamics of 2021. Rolled metal prices are formed depending on market conditions, within dynamic competition between market participants. Also, prices in this sector are closely connected with the situation on global markets.The FAS initiated an investigation over Russia’s biggest fiat steel producers in April 2021, taking into account complaints about an unfair increase in prices for HR steel. The Federal Antimonopoly Service of Russia has finished the investigation over the big three companies regarding the high prices for HR steel products, intending to fine them for law violations. After a thorough investigation FAS decided that Severstal, NLMK, and MMK kept monopoly high prices for HR fiat products in the domestic market since January 2021, accusing the producers of using non-market” factors, which led to such levels. The authorities give several points to prove their conclusion. On the one hand, HR flats costs were lagging behind the increase in the domestic prices; on the other hand, FAS has found that companies generated 3-fold higher profits even though there was no growth in sales volume and significant upturn in demand. On top of that, the "big three” have failed to confirm the unsatisfied demand from foreign customers, thus there were no factors in bringing domestic prices to the level of those for export contracts. Consequently, the companies, which have a dominant position in the domestic market, have violated anti-monopoly law since they increased prices only to meet the rise in prices abroad. FAS said “Severstal, MMK arid NLMK have been ordered to stop abusing their dominant position and take actions aimed at ensuring competition. Based on the materials of antimonopoly cases, cases of administrative violations will be initiated and fines will be calculated for each company."Earlier, the authority found signs of price fixing in the long steel segment, and accused seven metal traders, including Steel Industrial Company and A Group, of law violations
