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Pricing issues defer domestic steel consumption rebound – 06 Jul 10

Russia's iron and steel producers have come in for fierce criticism from the government for their pricing policies. Metal consumers, such as car makers, have deferred purchases citing high prices.

The crisis pulled the ground from under the steel producers’ feet. The recovery brought revival to the sector, with prices for metals rising.

The main steel consuming sectors such as construction, carmaking, Russian railways, and oil and gas companies have reduced their purchasing and postponed projects, accusing steel makers of hiking prices.

Evraz currently faces criminal charges for price fixing. It’s a problem that’s drawn the attention at the highest levels of government. The Antimonopoly service is conducting a wide ranging investigation including a number of the major producers.

Jul 26, 2010 12:10
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