FAS RUSSIA CONDUCTS ANTICARTEL INSPECTIONS OF THE LARGEST MANUFACTURERS OF REBAR

There are data at the regulation of the authority that may indicate signs of price collusion, the consequence of which may be the growth and maintenance of selling prices for rebar

Earlier, the FAS Russia on appeals from citizens and organizations about the increase in metal prices (including rebar) price monitoring was carried out, according to the results of which it was found that in the territory of the Russian Federation in 2021, compared to the previous year, prices for rebar increased significantly (more than 50%).

As one of the reasons for the increase in rebar prices, metallurgical companies pointed to an increase in price indicators on foreign markets. At the same time, the agency recorded an increase in prices on the domestic market during a decrease in external indicators.

Thus, according to the results of the analysis of the information available to the department, circumstances have been established that may indicate the presence in the actions of the largest manufacturers of rebar of signs of concluding and implementing price collusion aimed at increasing and maintaining selling prices for rebar.

The FAS Russia conducts unscheduled on-site inspections of NLMK PJSC, Novostal-M LLC, Tulachermet-Steel LLC, PMH Management Company LLC for the conclusion of an anti-competitive agreement (Article 11 of the Law On Protection of Competition). Inspections are held in Moscow, Tula and Lipetsk.

During the inspections, the FAS Russia will assess the pricing of the largest manufacturers of rebars, as well as study the reasons for possible unjustified price increases.

If there is a violation of the prohibitions established by the Law on Protection of Competition in the actions of the audited persons, a case on violation of the antimonopoly law will be initiated.

The conclusions about the presence or absence of violations of the antimonopoly law in the actions of the persons being checked will be made by the authority based on the results of the verification measures, as well as the analysis of all the information received by the FAS Russia.

For reference:

Also, the service is currently examining three cases in the flat rental market. Severstal, Magnitogorsk Iron and Steel Works (MMK) and Novolipetsk Steel Works (NLMK) are suspected of maintaining monopolistically high prices for hot-rolled products.

Moreover, on the grounds of cartel collusion in the metal rolling market, a case was initiated against Steel Industrial Company JSC, Metal Rolling Service Center LLC, Stroytechcenter Enterprise LLC, A Group LLC, URALMETALLSTROY LLC, Management of equipment and supply LLC, Metal Trading Company KRASO LLC.