Russia’s Ministry of Industry and Trade has instructed steel market participants to reduce their prices for steel rolled products and to limit margins to 20-25% for steel producers and 3-7% for traders & steel service companies. The respective agreements are planned to be in force until the end of 2022. Russian Federation’s Deputy Minister of Industry & trade Mr Viktor Yevtukhov, during an online meeting with key market participants on 10 March, said that for hot rolled steel products, the margin should not be higher than 25% and the same applies to prices for cold rolled sheet, rebar and the rest of the product range. He said "The prices that are fixed today do not suit anyone. They are very high. Last year, you all earned a lot of money, and now you need to work for the country and some modernization projects should be postponed if necessary.”According to the Ministry of Industry and Trade, the average production cost of a ton of hot rolled steel is estimated at RUB 45,000 per tonne (USD 374 with 20% VAT & USD RUB at 120.38. The steel companies have a short period of time to present their pricing schemes to the ministry, although the companies can decide themselves how to recalculate if prices of all steel products should come down significantly. If the companies fail to provide their proposals for reduced prices and profitability in the near future, the cost of metallurgical products will be set by the government.Meanwhile, the ministry said that there will be no restrictions regarding exports, though supply and price levels in the domestic market should be sufficient to satisfy all domestic needs.