Facts of abusing dominance on the fittings market in QII 2016 were not confirmed

FAS made the decision upon completing an investigation

In July 2016 FAS opened two cases on violating the antimonopoly law: against: “EVRAZ ZSMK” JSC, “EvrazHolding” TK” Ltd.  on the market of  heat-strengthened fittings (No. 1-10-102/00-05-16 case);  against “EVRAZ ZSMK” JSC, “EvrazHolding” TK” Ltd., “Severstal” PJSC, “Severstal Distribution” JSC,  “Chelyabinsk Metallurgical Integrated Works” PJSC, “Mechel-Service” Ltd. on the market of standard fittings (No. 1-10-103/00-05-16 case) upon signs of abusing dominance by fixing monopolistically high price in April-May 2016.

FAS survey of the state of competition on the fittings market showed that multiple economic entities operate on the market (over 10), and shares of the largest economic entities on the market had been ranked within the analyzed time period. New entities enter the market, for instance, “NLMK-Kaluga” Ltd., “Severstal – Balakovo Sorted Plant” JSC. The antimonopoly body concluded that there are no market entities with the dominant position under Article 5 of the Federal Law “On Protection of Competition”.

Upon closing the case, Stats-Secretary, Deputy Head of FAS Andrey Tsarikovsky stated that FAS shall be watching carefully the market trends. FAS Expert Council on developing competition in the metallurgy market analyses factors that influence pricing in the sector.

Deputy Head of FAS emphasized that metal producers should work more with consumers, explaining the market processes: “If companies were explaining their pricing policies on the market, it would not cause such a reaction from consumers that took place at the beginning of  2016”.