Minpromtorg explained a sharp rise in reinforcement prices at end users in October speculative traders policies. The position of the department was voiced by the State Secretary, the deputy head of the Ministry of Victor Yevtukhov, reports RIA Novosti.
The price of the reinforcement of 12 millimeters from October 1 increased by 39 percent, to 79.25 thousand rubles per ton with VAT. The official explained that traders buy out volumes, lay their march and sell goods at overpriced prices, and when prices decline, they suspend procurement in anticipation of further reduction.
“Metallurgists reduce production volumes. Further, through a deferred demand, we get an artificial deficit and another price splash. Obviously, this link on the market must be reduced, moving the maximum moving to long-term direct contracts,” Evtukhov said.
A sharp rise in metal prices in Russia began from the end of 2020. At the end of May, the first deputy prime minister Andrei Belousov accused the metallurgical companies in the “fattening” of the state for 100 billion rubles due to the jump in the domestic market prices. The government has introduced export duties on the export of raw materials from August 1 to December 31, 2021 to compensate for the loss of the budget.
In September, it became known that metallurgical companies decided to establish a tax. According to the bill, the steel will introduce excise in the amount of three percent of the export price of slabs (steel blanks) in Russian ports, if it is higher than 300 dollars per ton. Under the new tax there may be pipe manufacturers. Also, the document provides for an increase in mineral extraction tax (NPPI) and income tax.