Russian govt directs metal companies to cut profits, keep domestic prices low

In an email response to S&P Global, the trade ministry's press-service acknowledged the meeting between Evtukhov and representatives of the steel companies.

"Metallurgical products must be sold in Russia at low prices," Evtukhov said during the meeting. Regarding foreign markets, they "are no longer relevant or no longer interest anyone [in Russia] today," he added.

He requested the steel companies to submit information on the costs of their production and new price lists by early in the week starting March 13.

"I approximately know the cost of production of hot-rolled coil stands at Rb45,000/mt ($390/mt), and selling it for Rb72,000/mt is no longer possible," he said, adding that the maximal profit margins should be reduced to 20%-25%.

The prices for all steel products, including rebar and cold-rolled coil, must be reset accordingly, including in all contracts with customers and end-users, Evtukhov said.

S&P Global Commodity Insights assessed Moscow HRC price at Rb67,000/mt ($588)/mt CPT March 11, while CIS exportable HRC price was assessed at $1,085/mt.