Nelli Galimkhanova: metallurgical industry is in “grand force-majeure”. FAS has already started monitoring

On 31 August 2017 FAS held a session of the Working Group for developing competition on the market of graphite electrodes, chaired by Head of FAS Department for Industry Control, Nelli Galimkhanova.

Participants discussed factors affecting pricing for graphite electrodes, demand-supply balance, and the trends in Q4 2017 – 2018. They also considered reducing anti-damping duties for electrodes imported from abroad.

General Director of “ENERGOPROM” Group, Viktor Nechuyatov pointed out: “Tightening environmental regulation in China and growing electrical steel production in the world have changed the industry. As a result, the graphite electrodes market in China is in shortage, while the growth of product prices has expanded to the global markets. We are ready to meet the expectations of our consumers in the changing conditions on the global markets. To this purpose, FAS is devising investment plans to modernize and expand production capacities, and is implementing a programme for improving sales policy and interaction with buyers under the frame of observing the law on competition and fair satisfaction of the demand for graphite electrodes”.

“We understand that the situation with supplies of graphiteelectrodesisdifficultonbothdomesticandexternalmarkets, whichisreflectedinpricingofRussianandforeignsuppliers. We observe a considerable growth of prices, affecting consumers, and FAS has already sent information requests to better understand the issue”, emphasized Nelli Galimkhanova.

Based on outcome of the Working Group, a decision was made to continue discussing the issue and hold another session in the next month. Other authorities, particularly, the Ministry of Industry and Trade will be engaged in the discussion.

The Working Group was formed at FAS Expert Council for developing competition in metallurgy to discuss the current sharp increase of prices for graphite electrodes in 2017.

Attendees included manufacturers and consumers of graphite electrodes, suppliers of raw materials for their production, professional associations, representing their issues and other interested persons.