Severstal suggests introducing protective duties for metal scrap

“Severstal – Sort rolling plant Balakovo” CJSC consumes 1.2 mln tons of scrap metal a year. The growth of price for raw materials leads to the price rise of products the price of which has already risen by 40%.

Our main direction of expenditure is scrap metal purchase, CEO of the plant, Y. Fedorichev said. We spend 12 bln roubles a year for this purpose. Now scrap suppliers start to focus on exports. The price for scrap metal becomes uncomfortable for us. We hope for the federal Government – it can introduce protective duties for metal scrap.

The head of another enterprise in Balakovo – “Balakovo-Centrolit” CJSC - confirms the price rise for raw materials. “Last year we purchased scrap metal at 10 thousand roubles per ton, now the price has risen to 13.5 thousand/ton. In such conditions our products balance on the edge of profitability”, CEO of the plant, A. Barbashev, said.