FAS: DEVELOPMENT OF REBAR EXCHANGE TRADING WILL HELP TO BALANCE SITUATION IN THE MARKET

It will also provide consumers with an additional way to purchase rebar directly from manufacturers

For the first time, the sale of rebar through the exchange was established as one of the conditions of the remedies when approving the application of the company's economic concentration*.

Sale transactions for 140 tons of A500C rebar of PROMSORT LLC were concluded at SPIMEX** as a part of the execution of the authority's ruling***.

However, the authority notes that so far the volume of products sold on the exchange is not enough for its price to serve as a fair price indicator for the market. To form such an indicator, other manufacturers of rebar and direct consumers need to go to the stock exchange independently. FAS Russia expects an increase in the volume of fittings sold on the stock exchange and an improvement in the situation in this market.

FAS Russia will continue to monitor the further execution of the remedies by PROMSORT. It should be reminded that the organization is also obliged to ensure that an internal act defining the principles of interaction with consumers of products will be developed, approved and submitted to FAS Russia within three calendar months from the date of the transaction.

It should also be noted that the antimonopoly case against the company is currently being considered on the grounds of establishing and maintaining a monopolistically high price for fittings.

For reference:

* In accordance with the regulation, PROMSORT is obliged, after 6 calendar months from the date of the transaction, monthly, taking into account the criteria of regularity and uniformity, to sell on the stock exchange at least 5 % of the monthly volume of rebar production by a group of persons of PROMSORT LLC for the previous calendar month.

** On the condition of "delivered ex ship"

*** As part of the approval of the application for the acquisition of NLMK Kaluga LLC, NLMK Ural LLC and Vtorchermet NLMK LLC