The Ministry of Industry and Trade of Russia proposed on Monday to set the possible maximum local prices for steel products and raw materials temporarily, decoupling from the US dollar. The measure is expected to support the industry.
The ministry explained that there is currently a transformation in the structure of global demand for energy, raw materials and metals, often leading to record price increases. Therefore, raw material prices such as iron ore and coking coal remain high, and ferrous scrap prices are also rising. Aluminum and copper products are subject to currency fluctuations.
The Ministry said, "Under these conditions, it is necessary to ensure the uninterrupted functioning of the industry by 'separating' metallurgical product and raw material prices from the dollar rate." said.
The trade ministry said in a statement that this would help prevent the rise in prices of resources and final products in the domestic market. It was also stated that the measure will help maintain the pace of implementation of investment projects and the construction of federal and regional facilities.
Russian steelmakers said that due to international sanctions, the amount of steel products exported by Russia to foreign markets has been restricted, which means that the rate of domestic sales will increase and therefore prices will decrease. Therefore, the government does not need to set a profit cap.
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