FAS ASSESED CONCENTRATION ON THE MARKET OF IRON-ORE CONCENTRATE

The Antimonopoly Service carried out ex-post evaluation of the iron-ore concentrate in 2016 – 2017

Iron-ore is a source raw material for iron-ore concentrate. At the same time, the content of iron (Fe) in the concentrate can be increased in comparison with ore from 30% to 60-65%. Typically, iron-ore concentrate is used as the main component of blast-furnace burden for iron smelting. At the same time, choosing suppliers of iron-ore concentrate, cast iron producers look to the iron content: the higher is the iron content in the purchased raw materials, the bigger is iron saving in blast-furnace iron-making.

Performing ex-post evaluation, FAS found that the product boundaries of the market are iron-ore concentrateand iron-ore with iron content from 60% (± 2%).

The geographic boundaries of the market are defined as the Central, North-West and Urals Federal Districts within 1500 – 1600 km by rail to “Severstal” PJSC (Cherepovets” in view of the level of transportation costs.

FAS points out that the state of competition on the market of iron-ore raw materials is underdeveloped. The main producers within the market boundaries include such companies as “Metalloinvest” JSC and “Kovdor Mining and Processing Works” JSC. According to FAS evaluation, “Metalloinvest” JSC and “Kovdor Mining and processing Works” JSC have collective market dominance, with the cumulative share over 50%. The market share of each company exceeds 8%.