The Ministry of Industry and Trade has taken a formal step by addressing the Federal Antimonopoly Service (FAS) with concerns about how Russian coal suppliers may adjust coking coal pricing for the domestic market in response to shifts seen on global markets. The issue was highlighted in comments cited by Viktor Yevtukhov, who serves as Deputy Minister of Industry and Trade. His remarks underscore a worry that domestic metallurgical operations could face higher costs if suppliers honor promises to raise prices, potentially aligning with or even exceeding international price movements. This situation has prompted ongoing discussions about the best path to safeguard the affordability and stability of crucial industrial inputs for Russia’s metal sector.
Yevtukhov emphasized that a sustained price rise by coal producers could push fuel costs for Russian metallurgists upward by more than 40 percent, with ripple effects across the construction chain, manufacturing, and downstream steel products. He noted that the price increases observed at the start of the year were relatively small by comparison, but warned that the current conditions make it unacceptable to anchor domestic pricing to global benchmarks. The argument centers on preserving competitiveness and predictable pricing for key domestic users, rather than letting external fluctuations dictate the cost structure for Russia’s metal industry. This stance reflects a broader concern about maintaining steady production economics amid interconnected energy and material markets, where even modest shifts in input prices can cascade into higher finished product costs.
The ministry signaled its readiness to consult with multiple authorities in advance to prevent any abrupt price escalations in metal products. Specifically, officials indicated plans to coordinate with the FAS, other regulatory agencies, and the Attorney General’s Office to proactively monitor and, if needed, intervene to stabilize pricing trajectories. This proactive posture signals a preference for preventive measures rather than reactive responses, aiming to shield downstream industries from sudden cost hikes and to preserve downstream industrial activity. As discussions move forward, the ministry is exploring a suite of policy options designed to influence long-term contractual pricing with steel producers, coal suppliers, and related metal-consuming enterprises. The focus is on ensuring that price formation remains transparent, predictable, and aligned with domestic industrial goals rather than being driven solely by external market signals.