FAS suspects that “EVRAZ ZSMK” unreasonably increased armature prices

The Federal Antimonopoly Service (FAS Russia) opened a case against “EVRAZ ZSMK”JSC and a trade agent – “Evraz Holding” TK” Ltd. suspecting abusing dominance.

“The antimonopoly investigation was initiated upon signs of violating Clause 1 Part 1 Article 10 of the Federal Law “On Protection of Competition” on the market of steel thermo-mechanically reinforced bars for concrete reinforcing”, said Deputy Head of FAS Department for Industry Control, Dmitry Chuklinov.  

“In January – April 2016 prices for thermo-mechanically reinforced armature increased by more than 20%. At the same time the production costs in this period have not changes considerably. Thus, the price growth for such armature in April 2016 exceeded the growth of expenses required for production and sale of the products”, pointed out Mr. Chuklinov.

According to FAS, “EVRAZ ZSMK”has the dominant position on the marketof thermo-mechanically reinforced armature (the market share - 86%).

In QII 2016 FAS observed a growing number of petitions from physical persons and industrial enterprises regarding the increased costs of metal products.  Petitions mainly concerned a sharp increase of prices for this type of product.