Russia: The growth in steel prices may be 15-30% in 2015

Steelmakers are preparing to dramatically increase its contribution to the industrial inflation in Russia, rising domestic prices for rolled metal by 15-30%. Appropriate notifications have been already received by manufacturers of cars and vehicles. They called the decision “deadly” and in return threaten to increase the prices by 15-20%. Steelmakers insist that the fittest should survive "on open market".

Yesterday, partnership of producers and users of railway rolling stock "Association vagonostroiteley" announced plans of steelmakers to dramatically increase the price of rolled metal in 2015. According to the Association, all the "largest steel companies" have sent notices already. According to the partnership, in 2014 the prices for steel products for railcar producers increased by 26-28%, and taking into account the future increase, the overall growth will reach 35%. Railcar makers believe that steelmakers raise prices "to export level", although there are no "obvious reasons" for the growth: by results of the year, raw components "decreased by 30%", and transport costs didn’t increase. As a result, car-building industry, which is already in crisis (the production fell by 22.5%, prices by 26%), may face with shutdown. As a consequence, transport costs can grow, as prices of railcars will increase.