The Russian Steel Association said that since the beginning of the year the price of steel has fallen by 35%, while the cost of production has increased by 50%.
Russia's iron and steel executives, Magnitogorsk Iron and Steel Works (MMK), calculated that June steel output fell 40 percent to 550,000 tons. Severstal also confirmed a 20-25% drop in production last month. In addition, the Novolipetsk Iron and Steel Works (NLMK) estimates that Russian steel production will fall by more than 15%, or 11 million tons, this year.
The Ministry of Finance of the Russian Federation stated that it is impossible to cancel the excise duty on liquid steel. But in the fall they prepared to discuss the revision of the tax formula.
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